The decision by the Polish government to impose crypto transactions, even those that do not generate profits, has fueled discontent among traders in the country. The local crypto community has decided to protest the Finance ministry policy with online petitions that garner support. Taxes on crypto-related revenues in Poland can reach 32%. Any purchase and sale will be taxed as a transfer of property, regardless of the outcome to the parties.

Country Wants One-third Crypto Income of over € 20,000
The Ministry of Finance of Poland recently published its official position on the imposition of income tax and income cryptocurrency. Polish citizens tax returns should contain information about income from trade and exchange for cryptocurrencies such as bitcoin, litecoin or ether, the department said.

Crypto Revenue and Profit The turnover from crypto transactions must be reported as personal income and taxable according to the current state tax code. Poland has implemented a progressive income tax rate with two parentheses - 18% for revenues up to PLN 85,528 zloty (€ 20,400), and 32% for more than annual amount.

The ministry stressed that the general provisions of the Personal Income Tax Act include income derived from cryptocurrency transactions. In addition, he said the purchase and sale of cryptocurrency is considered a transfer of property rights. As such, they are subject to a 1% tax rate under the terms of the civil law treaty.

According to tax ministry interpretation, all cryptocurrency transactions, regardless of net proceeds, are taxed. This means that Poland is expected to pay taxes even when they do not profit from their transactions with cryptocurrency.

"They Want 1% but Will Not Win Penny"
Because of protesting the Ministry of Finance's stance, cryptocurrency traders have organized an online petition, Bloomberg reported. They blame the government for effectively limiting access to the emerging cryptocurrency market. Tax regulations have been introduced without consultation with affected parties.

The petition authors demanded to abolish all taxes on the cryptocurrency trade. They also called for clear rules for the taxation of profits in the industry. The local crypto community says investors will lose capital which, because their funds can be taxed hundreds of times.

Recent interpretation of the tax regulations associated with cryptocurrency requires market participants to pay 1% tax on each transaction. After a hundred transactions, regardless of the market situation, investors can give all their capital to the state. As a cryptocurrency community, with over 250,000 active members, we oppose this obligation.

As a result of "unwise government action", many Polish blockchain companies and programmers are now working on foreign projects, claiming those behind stopregulacjom.pl (Stop Regulation) initiatives. "They want to take 1% of each transaction but will not get a cent", says the campaign. The petition has been signed by nearly 3,000 people (at time of writing).

Polish Unfair Tax Protests on Crypto Revenues and Profits The Ministry of Finance has announced that they are working on a more convenient tax method for cryptocurrency, while emphasizing that current regulations are binding. The deadline for filing an annual tax return in Poland is April 30th.

With a recently published notice, the country is joining more and more EU members looking to capitalize on crypto related revenue and profits. However, most of them have not yet adopted a comprehensive regulation of cryptocurrency such as bitcoin.

Taxation policies differ significantly across the continent. Income tax and capital gains tax are often imposed on income associated with crypto. Most governments have chosen to apply their regular tax laws. provisions Tax rates range from 0 to 50% in various EU countries.

Source by: Bitcoin.com
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