Polish tax office clarifies crypto tax regulations: crypto transactions before summer 2018 require crypto tax

Polish tax authorities have recently clarified that the "Civil Law Transaction Tax" (PCC) applies to digital asset transactions before the suspension of collection in 2018, so crypto transactions before the summer of 2018 will require crypto taxes. According to the tax law interpretation issued in April 2018, after digital currencies are recognized as property rights, the 1% PCC tax should in principle be applied to cryptocurrency transactions. However, after the Polish crypto community protested and launched an online petition, the Polish Ministry of Finance suspended work on collecting crypto taxes in the summer of 2018 and extended the suspension deadline from July this year to June 30, 2020. It is reported that the PCC tax applies to this situation: when the seller is not a commercial entity or sells movable, immovable or various rights, it usually pays transfer tax for civil law transactions. The tax is paid by the buyer and is calculated based on the value of the assets purchased.