Poland has unveiled a draft amendment to its tax regulations targeting cryptocurrency income, marking a significant step toward formalizing the country’s stance on digital asset taxation. The proposed legislation introduces clear distinctions between decentralized cryptocurrencies and centralized virtual currencies, while clarifying tax obligations for trading, mining, and other crypto-related activities.
This development reflects Poland’s growing effort to align its legal framework with the realities of the digital economy—balancing regulatory oversight with innovation-friendly policies.
👉 Discover how Poland’s new crypto tax rules could impact your digital asset strategy.
A Clearer Framework for Crypto Taxation
The draft law, now published on the Polish government's legislative portal, is under review by the Council of Ministers and aims for approval in the third quarter of 2025. It seeks to simplify reporting requirements and eliminate ambiguities that have plagued taxpayers and crypto enthusiasts alike.
Under the current system, Poland applies a progressive income tax structure: 18% for annual earnings up to 85,528 PLN (approximately 20,000 EUR), and 32% for income exceeding that threshold. The new proposal maintains this structure but explicitly includes cryptocurrency-derived income within taxable revenue for both individuals and businesses.
One of the most notable aspects of the draft is its definition of virtual currency as a “digital representation of value,” aligned with Poland’s Anti-Money Laundering and Counter-Terrorist Financing Act. This legal clarity helps establish a solid foundation for future regulatory actions and compliance protocols.
Classification of Virtual Currencies
The bill categorizes virtual currencies into two distinct types:
- Cryptocurrencies: Decentralized digital assets such as Bitcoin and Ethereum.
- Centralized Virtual Currencies: Digital tokens issued and controlled by specific entities or platforms.
This classification allows for differentiated treatment based on the nature of the asset and its use case. Both forms can serve as:
- A medium of exchange
- An accepted payment method
- A tool for electronic storage and transfer in e-commerce transactions
Such distinctions are crucial for determining tax liability and ensuring fair application across different types of digital assets.
Tax Treatment of Crypto Transactions
According to the draft, profits from selling cryptocurrencies on exchanges, peer-to-peer platforms, or over-the-counter markets will be treated as taxable income. Similarly, receiving crypto in exchange for goods, services, or property will count as capital gains and be subject to taxation.
However, a major relief for traders: exchanging one cryptocurrency for another will not trigger a taxable event. This exemption avoids double taxation during portfolio rebalancing and supports active participation in decentralized finance (DeFi) ecosystems.
This policy aligns with growing international trends where inter-crypto swaps are not considered disposals unless fiat currency is involved.
Mining Income and Tax Obligations
Crypto miners are also within the scope of the new rules. Their profits—defined as the market value of mined coins at the time of sale—will be subject to income tax. However, the exact tax treatment depends on the miner’s operational model:
- Independent miners: Must report income when they sell their mined assets.
- Service-based miners (mining for clients): The compensation received—whether in crypto or fiat—is considered taxable income.
An important caveat: if a miner converts client-paid cryptocurrency into fiat before transferring it, the entire converted amount becomes taxable income, regardless of fees or costs incurred.
This provision emphasizes transparency and discourages off-the-books conversions, reinforcing compliance with anti-money laundering (AML) standards.
Reporting Requirements and Compliance
Taxpayers will be required to declare their crypto earnings annually through standard income tax returns. There is no requirement for advance payments, which simplifies cash flow management for individuals engaged in volatile markets.
Annual settlement means investors can calculate gains and losses over a full fiscal cycle, potentially offsetting profits with losses—a feature welcomed by long-term holders and traders alike.
Poland’s cumulative income tax model ensures that crypto profits are integrated into overall income, affecting the applicable tax bracket accordingly. For example, substantial crypto gains could push an individual into the higher 32% tax tier.
Strategic Implications and Market Response
While the intent behind the draft is to bring clarity and fairness to crypto taxation, it has sparked debate within Poland’s digital asset community. Some argue that any taxation on crypto activity may deter innovation and drive talent abroad. Others welcome regulation as a sign of maturation and legitimacy.
Historically, Poland’s Ministry of Finance acknowledged that applying civil transaction tax (PCC) to crypto trades led to “irrational outcomes,” ultimately abandoning enforcement. This new proposal represents a more thoughtful approach—crafting rules tailored specifically to blockchain-based assets rather than forcing them into outdated legal categories.
👉 See how global tax reforms are shaping the future of cryptocurrency investments.
Core Keywords
- Cryptocurrency taxation Poland
- Crypto tax exemption on trades
- Poland crypto mining tax
- Virtual currency regulation
- Inter-crypto exchange tax rules
- Digital asset income reporting
- Poland tax reform 2025
- Decentralized vs centralized virtual currency
Frequently Asked Questions (FAQ)
Q: Are all cryptocurrency transactions taxed in Poland under the new draft?
A: No. Only sales of crypto for fiat currency or using crypto to pay for goods and services are taxable. Swapping one cryptocurrency for another is exempt from taxation.
Q: How are crypto miners taxed under the proposed law?
A: Miners must pay income tax on the value of coins when sold. Those providing mining services are taxed on their compensation, especially if they convert client payments into fiat before delivery.
Q: Do I need to pay taxes immediately after making a crypto trade?
A: No. Taxpayers report crypto income annually and settle taxes once per year. Advance payments are not required.
Q: What qualifies as a taxable event in Poland’s crypto tax framework?
A: Taxable events include selling crypto for fiat, using crypto to purchase goods/services, or receiving crypto as payment for work or products.
Q: Is there a difference between decentralized cryptocurrencies and centralized virtual currencies in the law?
A: Yes. The draft distinguishes between the two, defining cryptocurrencies as decentralized assets like Bitcoin, while centralized virtual currencies are issued by specific entities.
Q: Will Poland’s tax system change significantly in 2025?
A: While no final decisions have been made, government sources indicate plans for broader tax reforms next year, which may affect how digital assets are taxed.