The government of Poland is not showing any signs of going soft on cryptocurrencies. The Income Tax Department of the country has suggested President Andrzej Duda’s government to levy a steep tax of 19% on income from cryptocurrencies. If accepted, the proposal is expected to come into force from January 2019.
These changes are coming after suspension of an earlier decision in which government had asked to tax crypto transactions regardless of profit or loss based on the value of transaction. That particular directive had attracted the ire of entire Polish crypto community. There was a lot of hue and cry, post which the decision was temporarily postponed. Now this 19% tax on ‘income’ from cryptocurrencies is better than that evil plan, but still far from being anything good for the crypto community.
The news was first reported by Polish crypto news outlet Kryptowaluty. According to their report, there’re several amendments suggested in the proposal sent to the President. One of the suggested amendments is to keep crypto-to-crypto transactions exempted from income tax. Another suggests 19% tax whenever cryptocurrencies are exchanged for property, fiat currency, commodity, service or anything else that is not a virtual currency. Income from cryptocurrencies is suggested to be treated just like income from investments and capital gains. Therefore, same flat rates of taxation are to be levied on individuals and businesses both.
The proposal also suggests to make it a requirement for the citizens to submit the details of all purchases done with virtual currencies. These details need to be provided in annual income tax returns, and purchases of digital coins also need to be included.
Last, but certainly not the least, the proposal suggests levying a “solidarity tax” of 4% on revenues earned from cryptocurrencies whenever those revenues are more than 1 million Polish zloty (about $265,000 at the time of writing this article).
It will be interesting to see how many changes to these amendments are done by the government before adopting them. These’re certainly not the favorable taxation laws for crypto. But what better can be expected from the countries where banking access is being blocked to cryptocurrency companies?