8 months ago

The Ministry of Finance of Poland has published a new draft law on taxation from operations with cryptocurrencies. The bill provides for simplification of reporting procedures and payment of income taxes for cryptocurrency activities.

According to the document, virtual currencies are classified as a “digital equivalent of value.” The authors of the draft law also differentiated the concepts of “cryptocurrencies” and “centralized virtual currencies”.

The draft law states that virtual currencies can serve as a means of exchange and be a means of payment, stored and transmitted electronically, and used in e-commerce.

It is also reported that main proposal of the officials is to declare incomes from operations with cryptocurrencies as part of the taxable income of individuals and legal entities. Nevertheless, the exchange of cryptocurrencies is not subject to taxation. The proposal also provides for taxation for miners. Individuals will only be taxed on the profits from the sale of the extracted cryptocurrency. The cost of the reward of the miner is subject to taxation if a group of persons or entrepreneurs are engaged in production.

Residents of the country involved in cryptocurrencies will have to fill in the declaration and annually pass it.

It is expected that the Council of Ministers of Poland will approve the bill in the third quarter of 2018.