Tax Implications of Cryptocurrency Lending and Collateral: No PCC or VAT Required?

• Cryptocurrencies are increasingly used in financial transactions like lending and collateral.
• Traditional currency loans in business are subject to VAT but not PCC; non-business loans are subject to PCC but not VAT.
• Cryptocurrency loans are not subject to PCC or VAT as they are considered property rights, not money.
• Securing a loan with cryptocurrency is also not subject to PCC.
• Using cryptocurrencies in lending can be fiscally attractive due to no PCC or VAT obligations.
• Individual tax interpretations protect only the applicant; each contract needs careful analysis.
• Converting cryptocurrency to zlotys may incur PIT or CIT.
• Consulting a tax advisor is recommended due to the complexity of crypto loans.

Source: mddp.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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