Polish Government Pondering Crypto Tax Legislation

The Polish government has published proposed legislation seeking to define how cryptocurrencies will be taxed in the country, Kryptowaluty reports.

The bill reportedly defines cryptocurrencies as, “a digital mapping of value,” and includes rules governing both the use of cryptos in retail purchases and their use as speculative investments.

Legislators say the bill seeks to both ‘simplify’ and ‘further tighten’ relevant tax rules:

“The project includes solutions addressed both to entrepreneurs and to individuals who do not run a business…The purpose of regulations introduced or modified by this Act is broadly understood (as) simplification of tax law regarding income taxes and further tightening of the tax system.”

Polish legislators state they hope the bill, “will help taxpayers correctly settle their income from trading in virtual currencies,” whether they do so as individuals or as part of a business:

“It is proposed in the personal income tax to include revenues from virtual currencies to revenues from capital, even if they are achieved as part of their business operations.”

The definition of “revenues” from the sale of crypto includes those obtained from any source, whether a “virtual currency exchange” or “on the free market.”

The proposed laws contain important information for crypto-lifestylers or anyone else using crypto for retail purchases.

In the case of crypto traded for services or goods, including, say, the purchase of property, the law proposes that retailers take the currency at face value, but buyers will have to report any capital gains obtained between the time a crypcurrency was first obtained and when it was used for a retail purchase:

“The entrepreneur’s revenue from the sale of, for example, a commodity, will be the price (value) of the commodity. On the other hand, when the trader sells the currencies thus obtained (paying them), the resulting income will be qualified to the source of revenues from capital (capital gains).”

Crypto-to-crypto trades, no matter where performed, “will remain indifferent in income tax.”

Polish taxpayers will be required to self-report on annual returns, and legislators hope to finalize the legislation this quarter.

 

Sponsored Links by DQ Promote

Send this to a friend