Despite the fact that the moods related to the cryptocurrency market are shaky, and the market itself is subject to high volatility and uncertainty, more and more companies are considering introducing the possibility of paying remuneration in the form of cryptocurrencies. Is it possible to pay remuneration for services or work with cryptocurrencies?
Can I Pay Employees in Cryptocurrency in Poland?
Polish regulations do not prohibit the payment of remuneration for various contracts in cryptocurrencies. However, not in every case, the remuneration can be paid in 100% in cryptocurrency.
Contract of employment
In the case of an employment contract, the remuneration may be paid in cryptocurrency in the part exceeding the minimum remuneration. This means that the minimum wage must be paid in traditional currency and the surplus in cryptocurrencies. In addition, the possibility of paying part of the remuneration in cryptocurrencies must be allowed by the collective labor agreement or by specific provisions of the labor law.
Contract of mandate, contract for specific work, B2B contract
In the case of mandate contracts, contracts for specific work, contracts for the provision of services (b2b), there are no legal barriers to paying 100% of remuneration in cryptocurrency. However, it should be pointed out that the legal tender in Poland is PLN or another fiat currency (e.g. USD or EUR). Bills and invoices issued for the services provided should be expressed in traditional currency.
For the purposes of payment, a kind of “currency conversion” of the value of remuneration expressed in PLN / USD / EUR must be made to a given cryptocurrency at the exchange rate on the day of payment of the remuneration. In such a case, it is worth entering into the contract that the remuneration may also be paid in cryptocurrency with the value corresponding to the remuneration expressed in PLN/USD/EUR.
Capital gains tax
Attention should also be paid to the issue of possible capital gains tax on the side of the contractor/contractor/service provider. If he does not immediately exchange cryptocurrency for traditional currency and the cryptocurrency exchange rate increases, then most likely such a person will have to pay capital gains tax. However, this is not the risk of the entity paying the remuneration in cryptocurrency, but the entity receiving such remuneration.
VAT and income tax
A person receiving remuneration in cryptocurrencies must remember that since his bill or invoice was issued in a traditional currency, he is obliged to settle income tax and VAT. You still have to pay advance payments of income tax and VAT due within the legal deadlines. The deduction should of course be made in fiat currency.