Polish Finance Ministry Temporarily Suspends Irrational Crypto Tax

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.

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!