Tax customs & excise / 21.09.2018

Taxation on Cryptocurrencies in Poland – new regulations

The Ministry of Finance has taken the next step to regulate cryptocurrencies market in Poland. After the entry into the force of the regulation on the civil law transaction tax applicable to cryptocurrencies, the discussion on amendments to the law on personal income tax (PIT) and corporate income tax (CIT). The changes will be also required in Polish Tax Ordinance Act.

First regulations

Initially, the cryptocurrency market in Poland was not regulated in any way. At the beginning of 2018, the first regulations regarding cryptocurrencies have appeared. Courts and tax authorities began to apply current regulations to the new cases related to virtual money. It resulted in very adverse interpretations to the taxpayers. As a result, it turned out that cryptocurrencies market requires new law which will consider the conditions of this specific market.

PIT and CIT applicable to cryptocurrencies

One of the proposed regulations assumes that PIT and CIT will be charged only in the event in which the cryptocurrencies will be converted to the traditional currency being the legal mean of payment. PIT taxpayers shall be able to count the revenues from trading in cryptocurrencies to income from cash capitals within a separate sub-source. Referring to the CIT taxpayers, the revenue will be counted to the new sub-source introduced to the revenues at the beginning of the year. The income obtained from cryptocurrency trade will be taxed at a rete which depends on the taxpayer status.