The Ministry of Finance of Poland issued a new statement on changes in the tax legislation of the country. What is most interesting for us, the Ministry decided to temporarily stop levying taxes on cryptocurrency after it came to the conclusion that the tax laws in this area are inapplicable and irrational.
First learn, then adjust
The Ministry of Finance of Poland plans to conduct an in-depth study of the crypto-currency sphere with a view to the more detailed development of the crypto-economy regulation system. The Ministry decided to refuse from taxation of crypto-currency transactions for the time of studying this issue.
Deputy Finance Minister of the country, Pavel Gruz, told Business Insider that the decision was made because the effect of taxation in this area was irrational, and therefore the government decided to abandon it.
The updated rules of tax regulation are planned to be issued by June 15.
How the system of taxation of the Crypto-currency in Poland worked
The tax on crypto-currencies operated in Poland since April, 30th. Earlier, the Ministry of Finance of the country informed the residents of Poland about the need to declare all income from the exchange of the currency and trade, as, according to the tax legislation, the income tax should be levied on these funds.
All transactions for the purchase and sale of crypto-currency fell under the laws on the transfer of property rights and therefore taxed regardless of whether it was received from this income or suffered losses. In this case, the tax rate was set at 1% regardless of the yield.
Taxation of the Crypto-currency caused a lot of protests in Poland: from online petitions to shares near the Ministry of Finance building. This also affected the decision of the authorities to abolish the established rules.
Pavel Gruza announced the withdrawal of taxes in this area after meeting with the protesters. Nevertheless, according to him, those who have already paid taxes, the funds will not return.