The Polish authorities realized how unacceptable their decision to pay taxes on all crypto-currency transactions.
The Polish authorities decided to cancel the controversial law on the tax on crypto-currency transactions. A senior Finance Ministry official said that the government faced an "irrational effect" of the tax, which it was planned to charge at every purchase and sale of the crypto currency, regardless of their profitability.
The Ministry of Finance of Poland is preparing to issue a new law that will temporarily give up the tax on crypto-currency transactions. In addition, the ministry is preparing to conduct a serious analysis and prepare "system solutions" for regulating this sector of the economy.
These steps are a response to the reaction of the crypto-currency community, which arose in the interpretation of the country's tax code.
"The Ministry of Finance understands the irrational effect of the tax on crypto-currencies," said Polish Deputy Finance Minister Pavel Gruza. Earlier in Poland, it was planned to impose on the so-called "Civil Law Transactions Tax" (on the Polish PCC) all the crypto-currency transactions. "So far, the Ministry has not done anything with the PCC, but recognized that crypto-currency transactions are the transfer of property rights. And this means that such transfers should be taxed by the PCC-tax, "Gruza comments.
In other words, the Polish authorities were preparing to tax profits and income with the Crypto-currency. This decision was announced in April, that is, less than a month before the end of filing tax returns - April 30. The inhabitants of Poland were to indicate in their declarations all the proceeds from the crypto-currency trade.
The ministry's statement said that income and profits from operations with the crypted currencies should be subject to personal income tax. And all purchases and sales of crypto-currencies, which are considered the transfer of property rights, should be taxed at a rate of 1% - such a tax in Poland has all transactions in civil law.
Now the authorities decided to abandon the tax on crypto-currencies, and the new law, which will regulate crypto-currency transactions, will be adopted already in June.
The introduction of a tax on crypto-currency transactions caused protests among Polish residents who even created an online petition and accused the authorities of restricting the access of citizens to the crypto-currency market.
This response from users was the main reason for the Ministry to reconsider its position. In addition, Pavel Gruz said that the country needs about 2 years to develop legislative norms for the functioning of the crypto-currency market.