We have already mentioned that the government plans to completely abolish the PCC tax on transactions based on cryptocurrencies. On April 7, a bill on the so-called Anti-crisis shield 2.0. Is available here. We will find in it provisions excluding digital currencies from the said tribute and the reasons for this decision of the authorities.
PCC a BTC
As we know, the matter has been controversial for several years. In 2018, the cryptocurrency community officially even protested against having to pay this type of tribute under the Ministry of Finance building.
In this text, however, we will look at the government’s reasoning why PCC should be abolished in this particular case.
The bill reads:
“The proposed amendment to the Act of 9 September 2000 on tax on civil law transactions (Journal of Laws of 2019, item 1519, as amended), has to introduce a tax exemption for sales and conversion of virtual currencies within the meaning of art. 2 clause 2 point 26 of the Act of 1 March 2018 on counteracting money laundering and terrorist financing (Journal of Laws of 2019, item 1115, as amended). It is proposed that the proposed amendments apply to civil law transactions made from 1 July 2020, because at present, the regulation of July 11, 2018 on abandoning the collection of tax on civil law transactions from a contract of sale or exchange of a virtual currency is in force in this respect (Journal of Laws item 1346, as amended), which is valid until June 30, 2020. This will ensure continuity not taxing the activities in question, which is particularly important in the context of mitigating the negative economic consequences borne by citizens due to COVID-19. “
The government further pointed out that paying PCC in this particular case is almost impossible:
“The specificity of transactions related to virtual currency trading means that its pages remain anonymous to each other, what makes it impossible to determine the tax status of the seller, constituting a circumstance determining the charging of a given transaction with tax on civil law transactions. In the case of transactions involving virtual currencies, the issue of the place of exercising property rights is also ambiguous, which is important from the point of view of the Act due to the territorial scope of its operation. As a rule, tax is subject to civil law transactions, the subject of which are property rights exercised in the territory of the Republic of Poland, and it is not obvious where civil law transactions take place in the case of trading in virtual currency..
Considering that tax law provisions cannot constitute a kind of trap for the taxpayer, and in the case of tax on civil law transactions of virtual currency trading, there may be effects that are difficult to accept in the light of constitutional principles, it is proposed to introduce an exemption from this tax. “
Everything indicates that eventually the problem will disappear completely. It is a pity that an epidemic must have been necessary for this …
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