Legislators from Poland recently introduced a new bill which addresses cryptocurrency taxation. The bill actually addresses how cryptocurrencies are seen, as well as what types of use are going to be taxed.
Recently, some legislators from Poland introduced a new bill which is set to clarify how cryptocurrency taxation works in their country. The document actually addresses both cryptocurrency transactions, as well as crypto mining.
Does the new bill achieve its purpose?
The Polish Council of Ministers is set to review the new bill in the third quarter of 2018, presumably to determine whether or not it achieves its purpose of simplifying the crypto taxation, according to one local crypto new outlet, known as Kryptowaluty.
The document justifies its goal, according to the news outlet, stating that the project includes solutions which are addressed to entrepreneurs, as well as individuals that don’t run a business. The aim of the regulations which are introduced or modified by this Act is a broadly understood simplification of tax law regarding income taxes, as well as further tightening of the tax system.
However, the new bill reportedly defines cryptocurrencies within the meaning of the Act of Counteracting Money Laundering and Terrorism Finance, meaning that cryptocurrencies are seen as a digital representation of money.
Then, these are split into two categories, cryptocurrency and the virtual digital currency, both of which can actually be utilized as an accepted medium of exchange, electronically stored or transferred, as well as used in e-commerce.
The crypto-related revenue treated as revenue for tax aims
According to the news outlet, the crypto-related revenue is going to be treated as revenue for tax purposes. Cryptos that are sold on crypto exchanges or on some other markets are going to be taxed as revenue. On the other side, cryptocurrencies which are earned through the sale of goods and services or through properties are going to be taxed according to the price of the good or service.
And about the crypto miners, their earnings are only set to be taxed if they mine on behalf of an organization or an individual. If they mine just for themselves and later sell the cryptos which they possess, they will probably only be taxed when selling them.
Crypto-to-crypto transaction, done on a crypto exchange, will not be taxed
One notable thing that the document reveals is that crypto-to-crypto transactions which are done on a crypto exchange or not, will not be taxed. The bill may be an essential thing in the country, as Poland saw crypto exchanges move to some other legislation over a banking blockade which the firms have suffered.
As it has been reported, Poland was the first country to put banking records on the blockchain, after starting the year with a campaign against the cryptocurrencies which saw the central bank of Poland pay one Youtuber about $27,000 to create a video discrediting cryptocurrencies.
After that, in May, the Financial Supervision Authority or KNF of Poland launched one similar attack against cryptos which saw it fund a social media campaign to discredit them.