<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In view of the fact that technological progress is in a constant state of change, current research efforts are directed towards blockchain technology and cryptocurrencies. Starting with the description of the way blockchain technology operates, the notions of decentralisation, proof-of-work consensus, and practical immutability are explained. Further, the article examines the possibility of using cryptocurrency in order to pay remuneration, realise partial non-cash payment of remuneration or grant an award to an employee. This article presents evidence that demonstrates that remuneration in the framework of the employment relationship in Poland cannot be paid in cryptocurrency, which contributes to the performance of the protective function of labour law. The article concludes that a collective labour agreement could include a clause allowing the employer to realise partial non-cash payment of remuneration in cryptocurrency. Similar provisions could be introduced in labour law, but the Polish legislator has never adopted such a measure. The authors highlight, however, that an award can be paid in cryptocurrency even in the full amount. Next, the authors research the new tax regulations in force in Poland since 1 January 2019 and explain why it is conceptually more convincing to classify revenues from cryptocurrency trading as revenues from money capital and revenues from capital gains than as property rights. The article presents a definition of the disposal for valuable consideration of a virtual currency. The purpose of this article is also to study how high is the income tax on income earned from the disposal for valuable consideration of virtual currencies. Moreover, an overview of the legislation related to tax-deductible expenses is provided. Finally, some reflections on the cryptocurrency trading in the context of the pursuit of an economic activity are given. The review especially highlights the Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and the judgment of the CJEU of 22 October 2015 (<italic>Skatteverket v. David Hedqvist</italic> [2015], case C-264/14), which has impacted the approach to the VAT problem in Poland.</p>
</abstract>

In view of the fact that technological progress is in a constant state of change, current research efforts are directed towards blockchain technology and cryptocurrencies. Starting with the description of the way blockchain technology operates, the notions of decentralisation, proof-of-work consensus, and practical immutability are explained. Further, the article examines the possibility of using cryptocurrency in order to pay remuneration, realise partial non-cash payment of remuneration or grant an award to an employee. This article presents evidence that demonstrates that remuneration in the framework of the employment relationship in Poland cannot be paid in cryptocurrency, which contributes to the performance of the protective function of labour law. The article concludes that a collective labour agreement could include a clause allowing the employer to realise partial non-cash payment of remuneration in cryptocurrency. Similar provisions could be introduced in labour law, but the Polish legislator has never adopted such a measure. The authors highlight, however, that an award can be paid in cryptocurrency even in the full amount. Next, the authors research the new tax regulations in force in Poland since 1 January 2019 and explain why it is conceptually more convincing to classify revenues from cryptocurrency trading as revenues from money capital and revenues from capital gains than as property rights. The article presents a definition of the disposal for valuable consideration of a virtual currency. The purpose of this article is also to study how high is the income tax on income earned from the disposal for valuable consideration of virtual currencies. Moreover, an overview of the legislation related to tax-deductible expenses is provided. Finally, some reflections on the cryptocurrency trading in the context of the pursuit of an economic activity are given. The review especially highlights the Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and the judgment of the CJEU of 22 October 2015 (Skatteverket v. David Hedqvist [2015], case C-264/14), which has impacted the approach to the VAT problem in Poland.

Cryptocurrencies: Some Remarks from the Perspective of Polish Employment and Tax Law

TalTech Journal of European Studies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

In view of the fact that technological progress is in a constant state of change, current research efforts are directed towards blockchain technology and...

Cryptocurrencies: Some Remarks from the Perspective of Polish Employment and Tax Law

Published Online: Jun 17, 2020

Page range: 22 - 39

DOI: https://doi.org/10.1515/bjes-2020-0002

Keywords
cryptocurrency, blockchain technology, employment law, Polish law, remuneration, tax law

© 2020 Aneta Tyc et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Cryptocurrencies: Some Remarks from the Perspective of Polish Employment and Tax Law

Published Online: Jun 17, 2020

Page range: 22 - 39

DOI: https://doi.org/10.1515/bjes-2020-0002

Keywordscryptocurrency, blockchain technology, employment law, Polish law, remuneration, tax law

© 2020 Aneta Tyc et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
cryptocurrency, blockchain technology, employment law, Polish law, remuneration, tax law