Poland to Impose Back Dated Tax on Crypto, Ukraine to Follow

Polish government is planning to impose back-dated taxes on crypto-transactions, regarded by many Poles as unpleasant news.

The Polish tax administration had introduced a moratorium suspending the collection of the Civil Law Transactions Tax in the summer of 2018, until the end of June 2020. This came after an interpretation of the tax law issued in April 2018 sparked huge controversy. The government then issued the temporary suspension of what was dubbed “irrational taxation”.

As per the interpretation, transactions in cryptocurrency are subject to 1-2% on sales of digital assets. “In July, it seemed the case would be resolved once and for all and cryptocurrencies would be permanently exempted from this tax”, the Kryptowaluty news outlet noted in a recent post.

However, the suspension seems to be only an interim measure, as the Polish National Tax Administration recently clarified that transactions carried out before July 2018 are liable for taxation.

Polish media reported that the matter has been discussed during the last meeting of EU’s Economic and Financial Affairs Council (Ecofin), as the issue remains hanging in the air.

Meanwhile, Ukraine is also planning to introduce a new taxation bill to include crypto currency gains. Analysts are concerned that the year 2020 will see crypto hubs focusing on crypto-taxation rather than regulation, which will only increase the already immense obstacles facing the sector.

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