Polish cryptocurrency investors have decided to protest the government’s decision to tax all crypto transactions even those that do not make profits. The crypto community has launched an online petition against the finance ministry, and the petition is gaining support day by day. The taxes imposed on cryptocurrency is as high as 32%, and all purchases and sale will be taxed similarly to the transfer of property regardless whether the parties are making results or not.
The Finance ministry recently published its position on the taxation of digital currency incomes and also profits. According to the report tax returns from all polish citizens should contain information about incomes from trade and exchanges for digital currencies. The turnover from cryptocurrency transaction will be reported as personal income and will be taxed according to the recent tax code. The country has already passed an income tax scale which is progressive with two brackets. The scale will include 18% tax for incomes up to PLN 85,528 and 32% for incomes that exceed the PLN 85,528 amount.
The ministry has further insisted that the terms of the personal income tax will cover all incomes driven by digital currencies transactions. More to that it went on to say that purchases and sales of digital currencies will be considered as a transfer of rights and they will be subjected to a 1% tax rates under the civil law governing agreements. This was meant to mean that polish citizens will have to pay taxes even in incidences where they are not making any profits.
Investors have vowed not to pay the 1%
The investors and traders in the country have started an online campaign to protest the decisions. They are blaming the government for putting restrictions on the growing crypto markets and more to that they are also questioning how tax regulations have been put in place without consulting the affected parties.
The protesters want the abolishment of all taxes on cryptocurrency trading. More to that they also want clear and fair rules to govern the rules for taxation of profits from the sector. They are not against the taxation of profits, but they feel that the government want to kill the growing market that why it’s imposing extraordinary rules.
According to the protesters:
“The interpretation of the regulations about cryptocurrencies is that it requires all participants to pay 1% tax on every transaction. This will mean that after hundred transactions investors will have given all their capital to the state. Our cryptocurrency community has over 250,000 active members, and we oppose these regulations.”
Because of these activities by the polish government, many blockchain companies in the country have now started working on foreign projects. The petitioners have vowed not to pay the 1% tax to the government. More to that their petition has already been signed by more than 4000 people.
The ministry has however stated that it is still working on a more accommodative method of taxing cryptocurrency agreeing that the current one is very binding. However, the polish citizens are expected to file their returns as per the existing rules, and the deadline for filing the returns is April 30th.
With this notice, Poland has joined other EU countries which want to get income from crypto-related profits. Most of these countries have however not yet come up with specific regulation to govern the crypto markets. For that reasons most of the countries are still using their regular tax laws to govern cryptocurrency as they draft accommodate ones to the growing sector.