Today, we want to present a very favorable tax interpretation for the cryptocurrency community from June 6, 2024, ref. 0111-KDIB2-3.4014.212.2024.1.MD.
Factual situation:
The partner owns cryptocurrencies that she acquired from an independent seller (not from an exchange, but for example from the Quark exchange office) and lent them to her partner. There arose a doubt whether the loan granted to the partner should be reported to the Tax Office.
Legal status:
According to the Act on Tax on Civil Law Transactions, loans of money or items specified only by type are subject to taxation. The tax rate on the loan agreement is 0.5%.
What does this mean?
It means that if you lend 500,000 PLN to your fiancée, 2,500 PLN of it should go to the Tax Office.
A lot? It depends, but if the fiancée does not pay this tax and has a tax audit, this rate increases to 20%. Then you must return 100,000 PLN plus late payment interest. And that is a lot.
Why is this?
According to the PCC Act, specifically Article 7, paragraph 5, which states:
The tax rate is 20% if during the course of verification activities, tax control, tax proceedings, or customs and tax control, the taxpayer:
1) refers to the fact of entering into a loan agreement, irregular deposit, or establishment of irregular usufruct or their changes, and the due tax on these activities has not been paid;
2) the borrower, as referred to in Article 9 point 10 letter b, refers to the fact of entering into a loan agreement and has not met the condition of documenting the receipt of money into a bank account or his account maintained by a cooperative savings and credit union or by postal transfer.
Below we quote a fragment from the interpretation:
According to Article 1, paragraph 1, point 1, letter b of the aforementioned act, the subject of taxation includes loan agreements for money or items specified only by type.
Pursuant to Article 720 of the Civil Code, by the loan agreement, the lender undertakes to transfer to the borrower ownership of a specified amount of money or items specified by type, and the borrower undertakes to return the same amount of money or the same amount of items of the same type and quality.
First of all, it should be noted that under the Act on Tax on Civil Law Transactions, virtual currencies are treated as property rights. Property rights should be understood as subjective rights closely connected with the economic interest of the entitled person, related to their assets, characterized by two fundamental features, namely:
– marketability (they can be traded)
– possessing a certain economic value.
Therefore, this category includes all entitlements that do not take the form of tangible things but simultaneously constitute measurable benefits that can be disposed of or from which benefits can be derived.
Since the subject of the loan agreement was cryptocurrencies, classified as property rights, entering into the said loan agreement was not subject to the tax on civil law transactions.
From the aforementioned Article 1, paragraph 1, point 1, letter b of the Act on Tax on Civil Law Transactions, it is clear that only loan agreements for money or items specified only by type are subject to the tax on civil law transactions. Cryptocurrencies, however, are neither money nor items specified by type. Therefore, it must be stated that since the loan agreement mentioned in the application was not listed in the statutory catalog of activities specified in Article 1, paragraph 1 of the Act on Tax on Civil Law Transactions, it is not subject to the mentioned tax.
And as stated by the tax authority:
In the described transaction, there is no obligation to report the loan because it is not subject to the tax on civil law transactions..
What is the conclusion from this?
Lend in crypto – you will not be obliged to report it.
And for cryptocurrencies, we invite you to us. You can find the addresses of our branches in the links below. Check if we are in your city.
Quark – your partner in cryptocurrencies
📍Bitcoin Exchange Office in Warsaw
📍Bitcoin Exchange Office Gdynia
📍Bitcoin Exchange Office Warsaw
📍Bitcoin Exchange Office Gdańsk
📍Bitcoin Exchange Office Legionowo
📍Bitcoin Exchange Office Nowy Sącz
📍Bitcoin Exchange Office Nowy Targ
📍Bitcoin Exchange Office Opole
📍Bitcoin Exchange Office Siedlce