Taxation of trading in cryptocurrencies - in Poland and Great Britain

Trading cryptocurrencies in Poland is problematic because the positions presented by the tax authorities in the issued tax interpretations differ, which means that people engaged in trading virtual currencies are not sure whether their settlements are correct. The constant changes and the need to constantly follow the interpretations issued mean that people involved in the mining and trade of cryptocurrencies are looking for alternative options, i.e. they register their activities in other countries, e.g. in the UK.

How to settle cryptocurrencies in Poland?

Currently, entrepreneurs running companies in Poland in the field of cryptocurrency trading are required to pay not only income tax but also PCC. Tax on civil law transactions must be paid for every single transaction of purchase and exchange of cryptocurrencies, and in addition, for each such transaction, the entrepreneur is obliged to provide the tax office with a PCC-3 declaration. He has up to 14 days for this from the moment the tax obligation arises.

Active trading is associated with the need to make many transactions on cryptocurrency exchanges, which means that in accordance with Polish legal regulations, you need to spend a lot of time completing the formalities, which means that the activity may become unprofitable instead of bringing the expected profits.

The Ministry of Finance has prepared a campaign to discourage Poles from trading cryptocurrencies. In the opinion of the Ministry, virtual currencies are unjust property rights. In the UK, tax law is favorable for people involved in the mining and trade of cryptocurrencies.

Virtual Currency Trading in Great Britain

It may be a good solution to establish a Limited company (the so-called LTD company) in England. British legal regulations leave no room for guesswork with regard to the settlement of cryptocurrency trading, which means that you do not need to apply for an individual tax ruling in this regard. People specializing in mining and trading cryptocurrencies who have registered a company in the UK do not have to worry that in the event of an inspection, officials will question their settlement method, thanks to which they gain peace of mind and can fully focus on their business.

 

Anyone involved in cryptocurrency trading may register a Limited company in England. You do not need to be a British resident to be able to settle accounts in the UK, it will be enough to be 16 years old. In a Limited company, according to British regulations, one Director and one Shareholder are required, and both functions may be performed by the same person. The Director may not become the secretary in LTD, but this is not an obligatory function.

The limited company has a legal personality and the shareholders are responsible for the company's obligations only up to the amount of their contribution. The minimum amount of initial capital has not been defined, which means that there is no need to incur high costs already at the stage of company registration. In addition, it is worth bearing in mind that this capital is declared, it does not have to be paid to the company's bank account.  Moreover, there are no contraindications for the initial capital to be transferred to the company in the form of a virtual currency. In England, there is a much higher tax-free amount than in Poland, which currently amounts to 11,850 pounds, converted into the Polish currency, which is approximately PLN 57,000. In addition, until you exceed £ 8,424 per year, you may be exempt from contributions insurance.