Polish Finance Ministry Temporarily Suspends Irrational Crypto Tax

Casper Brown
May 22, 2018 Updated May 17, 2024
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Crypto tax in Poland that were considered high has been lifted off by the Finance Ministry temporarily as the authorities promise to work on better and smarter crypto regulations.

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Irrational crypto tax lifted off

According to the local media sources, the Finance Ministry of Poland will be suspending the tax collection for cryptocurrencies temporarily. This new update came after the authorities realized the irrationality of the taxation laws and will conduct an in-depth analysis of crypto space for better regulations.

The new and reformed crypto tax regulations are expected to be released by June 15.

The now abandoned tax structure had the crypto transactions fall under two income tax brackets of 18 and 32 percent. An additional 1 percent also applied because of civil agreements as the crypto transactions are considered as the transfer of property rights by the Ministry of Finance that doesn’t depend on the profitability.

The income tax statements get due on April 30 in Poland and the above-mentioned taxation guidelines were released by the authorities at the beginning of April. At that time, Ministry of Finance asked the Poland residents to report their tax returns for all the revenues from crypto trading and exchange under the personal income tax.

Also, read: Crypto Scams Accounted for Less than 1% of Australian Scam Economy

Polish government harsh on cryptos

In response to the severe crypto regulations, a petition has been created that has now more than 5,000 signatures, is asking for the “release of the crypto market, and the abolition of all taxes related to this technology.”

Now, in the recent statement of Polish Finance Ministry, it acknowledges that the current crypto taxation means the taxation amount often exceeds the invested funds.

Pawel Gruza, the Deputy Finance Minister of Poland told the media that the authorities have accepted that PCC tax has an irrational effect on cryptos, ergo it has been lifted until a solution has been achieved.

Though the PCC taxes are lifted, those that have already paid won’t be getting a refund on their taxes.

So far, the Polish government has been negative towards cryptocurrencies as last week they launched an anti-crypto campaign on social media. For this campaign, the Financial Supervision Authority (KNF) of Poland placed a tender order of about $173,000 to show the risks involving cryptos and pyramid schemes.

At the beginning of this year, a draft law was also approved by the executive branch of power in Warsaw that aims to put cryptocurrencies under the traditional Polish legislation of anti-money laundering and counter-terrorism financial provisions.

Do you think Polish Financial Ministry will come up with better and smarter crypto tax and regulations? Share your thoughts with us!

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.