Cryptoassets in Poland: tax traps, reporting duties and business risks

Although the Polish crypto market has grown significantly, the pace of regulatory development has not kept up. Tax authorities, once unfamiliar with even the simplest of crypto transactions, are now increasingly equipped to investigate and scrutinise more complex structures – leaving little room for anonymity or non-compliance.

Income tax implications

In Poland, the income tax treatment of cryptoassets hinges on the definition of a ‘virtual currency’ – a digital representation of value that can be exchanged for legal tender or used as a means of payment, provided it can be stored, transferred, or traded electronically.

Since 2019, profits from qualifying tokens have been classified as capital gains. A taxable event arises when virtual currency is exchanged for fiat money (traditional government-issued currency such as pounds, dollars` or euros), or – less frequently – for goods, services, or property rights other than other virtual currencies. Importantly, crypto-to-crypto transactions remain tax-exempt.

The tax base is calculated as the difference between the disposal proceeds and directly related costs – such as the purchase price or broker commissions. The applicable tax rate is a flat 19%. However, expenses related to the issuance of tokens, such as mining equipment, are not deductible. Furthermore, deductible costs must be reported in the same tax year in which they are incurred, even if the corresponding income is realized in a future period.

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