Poland Drops Crypto Tax

May 21, 2018 Taxation in Poland

Tax on cryptocurrencyWARSAW – Poland’s treatment of cryptocurrency used to result in tax burdens greater than the value of the transactions made, but new tax rules are set to change that.

The Ministry of Finance of Poland has issued a new statement confirming that it will not be taxing incomes derived from transactions on cryptocurrencies.

Prior to the announcement, Poland was considered by some to be one of the worst countries in which to transact with cryptocurrencies due to the highly punitive tax measures enacted by the government.

Cryptocurrency transactions or trades previously led to a tax of 18 percent to 32 percent, regardless of it made a net profit or not.

Further, all cryptocurrency transactions were additionally required to pay a tax of 1 percent, as they were considered to be a transfer of property rights.

The government has now said that it will conduct an in-depth analysis of the cryptocurrency economy, and create better and more relevant rules for crypto transactions.

However, until the rules are created, the state will not charge the standard income tax of 18 percent to 32 percent on these transactions.

The Ministry of Finance conceded that the previously applied rules had resulted in situations whereby traders would face a tax obligation which was higher than the amounts and the value of their trades.