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While the first point is beyond any doubt, the second one is quite controversial. Exchanging for example Bitcoin to Litecoin generates income and therefore tax. Such statements began to appear in individual tax interpretations reported to local tax offices. People who have been trading cryptocurrencies for years have probably not been aware of this fact.
This is the case with the US and Australia as well, among other countries, if I'm not mistaken. Basically, if you make a trade where you profited (fiat or otherwise), you pay taxes.
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It is extremely important to determine the moment of obtaining the income. According to Ministry of Finance, it arises when the taxpayer receives or has available to his own disposal the money or the other cryptocurrency. So, if during the whole year you’ve been trading cryptocurrencies but haven’t withdrawn money from crypto-exchange you should pay tax anyway. The moment of tax obligation takes place not when you’re transferring money from the exchange to a bank account but the time of the transaction. Unfortunately, many people were not aware of it either.
I could be wrong, but you only have to pay on profits you've actually made. Let's say you bought 1 BTC for $10, then you held it until it reached $100 in value. If you never actually traded your Bitcoin for anything, you don't pay anything. If, however, you used your Bitcoin ($100 in value) to buy Litecoins, you have to pay income taxes for $90 because that's how much you've profited from your 1 BTC.
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For example. If entrepreneur in course of his business was trading with an amount of 10 000 PLN and made daily 10 buys and 10 sells for 10 000 PLN - 300 transactions monthly - and was not gaining any single penny from this trades, he is anyway obliged to pay approx. 500 000 PLN of tax because from 3 milllion PLN income (in terms of month) he is unable to deduct 3 million PLN costs. It’s worth to add that daytraders or transaction bots are already doing tens or hundreds of transactions each day. If they are doing it in course of their businesses then due taxes can be counted in millions of PLNs.
Are you sure about this? This is completely unreasonable if true. I highlighted the word income because that's all you have to pay for. If you break even with your trades, you can't earn income. I could be mistaken, but I'd say the 3 million is gross sales rather than income. Something is amiss here.
I'm only basing this on my (limited) knowledge of US crypto tax laws though, so I might be completely mistaken. They seem similar to me in first glance. The filing could very well be different though. This post is not meant as legal advice.
Unfortunately, the original article (written in Polish) was checked by some tax lawyers and according to MF statement... it's all impossible to believe but true.
There's however one exception. Transactions below 50 PLN are not a subject of taxation. As PCC is being rounded to wholes. All above 50 PLN however are taxable.
in both cases it is necessary to submit a transaction letter in a special form to the local TAX office within 14 days from its occurance.
darkangel11, people seems to be accustomed to milking.
