Cryptocurrency

Changes in the digital space, especially the development of Web 4.0, which includes the evolution of concepts such as cryptocurrencies, DeFi, NFTs, DLT and the metaverse, are taking place at a much faster pace than the adaptation of legal and tax regulations to these new instruments. This does not mean, however, that businesses based on new technologies are not subject to taxation.

Entities involved in the development of the cryptoeconomics sector and significant amounts of transactions related to new technologies attract the attention of EU and national tax authorities.

How can we help you?

VAT tax support for activities based on cryptoassets

Comprehensive tax support for entities whose activities are based on the use of cryptoassets (from relatively simple transactions carried out on the market to more complex business models, including e.g. staking of tokens by users), including: in terms of:

tax classification of VAT activities – trading in cryptocurrencies and tokens on the financial market (DeFi), trading and new applications of cryptoassets, e.g. NFTs, digital items in metaverses, events and services in metaverses;
determining the appropriate VAT rates, base and place of taxation applicable to innovative projects;
defining and indicating possible simplifications in recording/operational obligations;
support in obtaining interpretations issued by the competent tax authorities confirming the method of taxation for specific events..

Income tax support

Support in determining the correct and possibly effective method of taxation for income tax purposes of activities in the area of cryptoeconomics, including:

trading virtual currencies, converting cryptocurrency into a traditional means of payment,
costs of producing tokens;
purchase of dedicated computer equipment and IT systems;
purchase of support services (including e.g. computing power supply services)..

Transfer pricing support

Verification of ongoing/planned transactions related to cryptoassets in terms of their marketability, including determining the market level of remuneration with a model adapted to the type of transaction and asset;
Analysis of the profitability of competition on transactions related to cryptoassets.

Regulatory support

Analysis of the impact of planned changes in the scope of registration obligations resulting from, among others, from DAC8 on the activities of entities providing intermediation services in the field of cryptoassets.
Consultations on new tax regulations in the field of cryptoeconomics regarding cryptocurrencies, NFTs, metaverses.

Cryptocurrency tax support - benefits

Determining the tax consequences of activities on the crypto market

Thanks to our support, you can effectively reduce the risk of negative consequences resulting from the lack or incorrect tax classification of your activities/transactions.

Compliance with evolving tax regulations relating to the crypto market

We support clients in adapting to evolving regulations and new obligations regarding cryptocurrencies. When assessing tax consequences, our experts take into account the conditions of national and Community tax regulations and practices (often different in individual jurisdictions), including new legal regulations regarding the crypto market (e.g. the MiCA regulation).

Operational support in fulfilling tax obligations

We support clients in the processes of registering activities related to cryptoassets in various jurisdictions and help adapt the procedures and processes of entities striving to exercise due diligence in tax areas.

Using the potential of the decentralized finance market

In the realities of decentralized finance, banks and financial institutions have a chance to open new paths of development and expansion. Using our deep knowledge in the field of taxes, we support banks and financial institutions in developing strategies that will allow them to safely reap the benefits of this innovative sector, without the risk of incorrect tax classification.

Our experience

Individuals and retail investors

Comprehensive advisory services for annual tax settlements related to income from cryptocurrencies and other crypto-assets.

Support in structuring investments involving cryptocurrencies.

Financial institutions and crypto-asset trading platforms

In-depth analysis of the tax treatment of crypto-assets for financial institutions involved in the trading of financial instruments.

VAT advisory services for platforms engaged in cryptocurrency exchange activities.

Comprehensive tax advisory services for businesses operating in the crypto sector, including those issuing tokens.

Entities operating in blockchain technology (DAOs, token and NFT issuers)

Analysis of the tax implications of services provided to Decentralised Autonomous Organisations (DAOs).

Support in the tax qualification and determination of the place of taxation for collectible products linked to NFTs.

Regulators and public institutions

Active participation in consultations on domestic regulations (e.g. the Cryptocurrency Act) and in the analysis of EU legislative initiatives.

Proposing regulatory amendments to support the development of the crypto sector and to enhance regulatory clarity.

Contribution of tax-related commentary on crypto-assets to Poland’s first report on decentralised finance, prepared by GFT Technologies and Google Cloud Poland.