The Polish Ministry of Finance recently announced its official position on revenue from cryptocurrencies and income taxes. The department stated that tax returns for Polish citizens should include information on income from transactions in cryptocurrencies such as Bitcoin, Litecoin or Ethereum.

The transaction amount of the encrypted transactions must be reported in the form of personal income and taxed in accordance with the current tax laws of the country. Poland has introduced a progressive income tax with a 2-tier tax rate, with 18% of income up to PLN 85,528 (approximately EUR 20,400) and 32% of revenues during the year.

The department believes that the general terms of the personal income tax law cover the income derived from cryptocurrency transactions. In addition, the purchase and sale of cryptocurrencies are considered transfers of property rights. Therefore, according to the civil law agreement, they must pay a 1% tax rate.

According to the interpretation of the tax code ministry, all cryptocurrency transactions, regardless of their net result, are subject to taxes. This means that Poles must pay taxes, even if they have not benefited from transactions with cryptocurrencies.

According to Bloomberg, many cryptocurrency dealers protested and launched an online petition. They accused the government of doing so to prevent people from joining the growing cryptocurrency market. It is a mistake to introduce fiscal laws and regulations without consulting the parties.

The petition requires the repeal of all taxes on cryptocurrency transactions. They also ask for clear rules about the taxation of profits in the industry. The local encryption community argued that if the tax does not change, investors will suffer losses because their funds can be taxed hundreds of times during the transaction.

The community shouted: "The current interpretation of the tax laws on cryptocurrencies requires market participants to pay 1% of taxes on each transaction.After one hundred transactions, regardless of market conditions, this does not mean putting assets Are we contributing to the country? As a cryptocurrency community with more than 250,000 active members, we oppose such tax laws. "

Due to this reckless behavior of the government, many Polish blockchain companies and programmers are now turning to foreign projects. "They want to pay a 1% tax on each transaction, so they do not get a penny," they say.

Currently, 3,000 people have signed petitions.

At the same time, the Ministry of Finance announced that they are developing more philanthropic approaches to the imposition of cryptocurrencies, while emphasizing that existing regulations are binding. The Polish government will eventually file its annual tax return on April 30.

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