The government of Poland has announced a new draft bill amending the country’s tax laws to incorporate the taxation of income and profit related to cryptocurrencies.
The draft bill is set to simplify and clarify the procedures for reporting and paying taxes on revenues from crypto-related activities. The main proposal is to declare revenues from virtual currency transactions as part of the taxable income of individuals and businesses. These include proceeds from the sale of cryptos on exchanges, other trading platforms and in over the counter deals on the free market. Incomes from the sale of goods, services and property for cryptocurrency will also be treated as revenue for capital gains purposes. However, crypto-to-crypto transactions will not be taxed.
Cryptocurrency miners are also expected to pay taxes on their profits. When miners work for themselves, they will pay tax on the gains from the sale of the mined cryptocurrency. If they mine on behalf of other entities or individuals, the value of their remuneration will be taxed. However, if they choose to convert the cryptocurrency to fiat before they pay their clients, the whole amount will be considered as revenue and tax will be due on the total.
All these obligations should be reported on the annual tax returns and settled once a year.
The draft bill has been offered for consultation and its adoption by the Polish Council of Ministers is planned for the third quarter of 2018.