The Finance Ministry for Poland has released a new statement about an update on the country’s taxation laws. Much to the delight of Poland’s cryptocurrency users, the taxation on trading from cryptocurrency has been temporarily lifted as the authorities have realized how inapplicable and irrational the taxation laws were.
The Polish Finance Ministry is going to conduct an in-depth analysis and prepare the system to regulate cryptocurrency economy. Until the ministry comes to understanding, they are going to temporarily abandon the tax on transactions of cryptocurrency.
The Deputy Finance Minister of Poland, Pawel Gruza has told Business Insider that the Finance Ministry of Poland has accepted that there was an irrational effect of PCC tax on cryptocurrency and it has been lifted until the government comes to a solution.
He was addressing the controversial decision which was announced on April 30th. The Ministry of Finance had earlier issued another statement asking the residents of Poland to report their tax returns for all revenues generating from the exchange and trade of cryptocurrencies as they are subjected to personal income tax in accordance with the current tax legislation.
The statement says that all purchases and sales of cryptocurrency comes under transfers of property rights and shall be taxed regardless of profit or loss made from it. 1% is the tax rate for civil law transactions, as it doesn’t depend on the profitability.
The Finance Ministry is taken into account that the entity which trades cryptocurrency might be required to pay tax in an amount which often exceeds the funds and which would be initially invested as they would be entering into multiple sale and exchange contracts. Taking this into consideration, new reformed tax regulations is expected by 15th June.
There have been a lot of protests like an online petition, protests outside the finance ministry after the tax reforms were imposed to restrict the growing cryptocurrency market in Poland. The Ministry had come to the decision after the strong backlash regarding the new taxation laws. Pawel Gruza had announced the lift of PCC taxes after meeting with the protesters. But he had said those who have already paid would not get a refund on the PCC taxes.