Best Bitcoin Card for Poland
After protests in Poland: No more taxes on crypto currencies
Crypto users in Poland will no longer have to pay taxes on trading in crypto currencies. This is the Polish Ministry of Finance’s reaction to a massive counter-front from the Polish crypto community. However, the lifting of the tax liability is temporary for the time being – it is therefore necessary to wait and see how the situation develops for Polish crypto fans in the near future.
At the beginning of the year, the Polish government introduced a tax on crypto currencies. As the Ministry of Finance announced in April, all Poles trading in crypto are obliged to pay tax on their profits. Accordingly, all revenues are subject to personal income tax. Depending on the level of income, this is between 18 and 32 percent. In addition, the Ministry of Finance insists on a transaction tax of one percent per trade – regardless of profits or losses that the crypto trade brings to users.
The government’s announcements triggered an immediate reaction from the crypto community. After first signing an online petition, some demonstrators from the crypto scene gathered in front of the Ministry of Finance building. They accused the government of trying to narrow down the emerging crypto market in Poland and continue its anti-crypto strategy. In addition, the timing of the announcement was criticized: The deadline for the payment of the annual tax is 30 April, a few weeks after the announcement of the crypto taxation.
Government rethink
Now the Polish Ministry of Finance, after more detailed talks with the protesters, has apparently reconsidered its position. As the Polish press agency reported last week, the Ministry of Finance wants to carry out a “detailed analysis” in the area of crypto currencies in order to establish an appropriate regulatory and tax policy. Until this analysis is completed, the taxation of the crypto trade is to be suspended for the time being. So this is good news for crypto traders in Poland, at least in the short to medium term.
In Germany, private sales of crypto currencies are taxed pursuant to Section 23 (1) No. 2 of the German Income Tax Act (EStG). A detailed explanation of the tax situation in Germany can be found here. However, it should be noted that very few countries have already drawn up a final version of a regulatory framework for crypto currencies. Accordingly, the last word has not yet been spoken on the subject of taxes.
About Poland
Poland is a country in Central Europe and a member of the European Union. In the Middle Ages and early modern times, Poland was one of the most powerful states in Europe. Weakened by internal disputes, the country was gradually annexed in three divisions by its neighbours Prussia, Austria and Russia. From 1795 to 1918 there was no longer an independent Poland. It was not until 1918 that Poland regained its independence. During the Second World War the country suffered great losses. The borders were also redefined. After the Second World War, the country belonged to the Eastern bloc until the fall of the Berlin Wall in 1989.
After the political change, Poland underwent major political, social and economic changes, including the introduction of a democratic system and the transition from a centrally controlled planned economy to a free market economy. Since 2004, Poland has been a member of the European Union and a driving economic force in Central Europe.
Poland’s climate is a temperate transitional climate. This is where the dry air from the Eurasian continent meets the humid air from the Atlantic. In the north and west there is a moderate maritime climate, in the east and southeast a continental climate. Rainfall decreases from the coast to the interior and to the east. In the highlands they rise again. Heavy snowfall in winter.