Taxation of ICO & Tokenization

Carrying out an ICO or tokenizing a project is not only a complex legal process, but also a tax one.BTTP offers comprehensive advice on the tax structuring of these activities, helping clients avoid risks and ensure compliance with applicable regulations.

There is no single, universal definition of a token in the Polish legal system. Depending on the qualification of the issued token – whether it is a virtual currency, EMT (e-money token), ART (asset-referenced token) or other crypto-asset – the tax consequences may vary in terms of:

• VAT – including determining whether the emission is subject to taxation,
• income taxes, which may apply to both the issuer and the recipients of tokens.

As part of our offer we provide:

• tax qualification of issued tokens – we analyze their legal nature and function in the project to correctly determine their status for tax settlement purposes,
• ICO/Tokenization Tax Structure Advice, which eliminates the risk of arrears,
• ongoing support in tax settlements related to the emission.

Thanks to our experience in working with blockchain projects, we help clients correctly settle token issuance while optimizing tax processes.