From today i.e. July 13, 2018, the sale or exchange of cryptocurrencies for other cryptocurrencies is exempt from the civil law transaction tax(PCC). From today i.e. 13 July 2018, the sale or exchange of cryptocurrencies into other cryptocurrencies is exempt from the tax on civil law transactions(PCC). The exemption is possible thanks to the Regulation of the Minister of Finance of 11 July 2018 on the abandonment of the collection of tax on civil law transactions on the contract of sale or exchange of virtual currency. Therefore, users of cryptocurrencies and especially people trading them can breathe a sigh of relief. Of course, not completely, because there are still no full regulations, which are expected to appear until June 30, 2019, that is, for the duration of the regulation. This means that for the next year at least, users of cryptocurrencies do not have to worry about the PCC tax, which has often led to absurd situations in which the tax was higher than the income earned by the taxpayer trading in cryptocurrencies. Let's remind what the problem was: Cryptocurrency users per month can make tens or even millions of transactions using trading bots. When placing a single bid on an exchange, we are not sure if it will be executed by one person or 100 or more. When we make e.g. 10 innocent transactions per month, which will break 100 smaller ones on the exchange, we had to fill 1000 three-page PCC3 forms. From each of them we had to pay 1% tax, which does not seem like much, but not with this scale of turnover. It could happen that by playing on the cryptocurrency exchange we earned or lost PLN 100, and the due PCC tax could be even PLN 1 million and more, there is no upper limit. So by firing up a bot on the exchange making hundreds of transactions a day, we risked having our life's possessions auctioned off. Fortunately, this is no longer a threat to cryptocurrency users who will make transactions from today, i.e. from 13 July 2018 to 30 June 2019. By then, the Ministry plans to have legal solutions for cryptocurrency trading in Poland ready. The question arises what about those trading before July 13, 2018? Unfortunately, the regulation only applies to the aforementioned timeframe. "Solutions to the legal and tax situation of entities that have failed to settle their civil law transaction tax liabilities in the past in connection with cryptocurrency trading require a legislative initiative. The direction of solutions is not yet determined and will be the result of in-depth analyses currently underway." - Paweł Gruza, Undersecretary of State at the Ministry of Finance, stated in response to the letter from Jadwiga Emilewicz, Minister of Entrepreneurship and Technology. This means that there are no legal mechanisms to protect people trading in cryptocurrencies before 13 July 2018, however, it is not excluded that such may appear. However, this requires a legislative initiative. Thus, people trading before July 13 cannot rest easy, and the Tax Offices can further claim the outstanding tax, but there is a chance that by the time of possible audits the matter will be resolved by law. Nevertheless, even in case of control and its negative consequences resulting from the PCC tax, we can fight for justice before the Administrative Court. Tags bitcoin cryptocurrencies Ministry of Finance PCC tax Poland
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