Cryptocurrency tax in Poland: PIT-38 explained for investors

Any person who, in a given tax year, sold or purchased cryptocurrencies (more precisely, virtual currencies) should report the income earned or the deductible costs incurred in the annual PIT-38 return. The deadline for filing the PIT-38 return is 30 April of the following year. This obligation also applies to investors who, in a given year, exchanged cryptocurrencies for goods, services, or another property right that is not a virtual currency.

Tax on the sale of cryptocurrencies in Poland – how to report PIT-38?

Income from the disposal of virtual currencies for consideration is treated as income from monetary capital and is subject to a 19% tax rate. It is reported separately from employment income, income from property rights, or income earned as part of a business activity. Income from cryptocurrencies is declared on the form dedicated to capital income, i.e. PIT-38. However, it is not combined with other income and losses from monetary capital, for example from stock exchange investments or investment funds.

In the annual PIT-38 return, the taxpayer should report:

• revenue from the disposal of cryptocurrencies for consideration (including revenue from exchanging cryptocurrencies into legal tender – FIAT currencies, goods, services, or a property right that is not a virtual currency),

• the acquisition costs of cryptocurrencies.

If an investor exchanges one cryptocurrency for another (e.g. BTH for ETH), the transaction remains tax-neutral and does not generate revenue from the disposal of cryptocurrencies for consideration. This means that expenses incurred in connection with this type of transaction may not be taken into account when calculating earned income.

Deductible costs in cryptocurrency trading

Deductible costs related to the disposal of a virtual currency for consideration include documented expenses directly incurred to acquire the virtual currency, as well as costs related to its disposal, including documented expenses paid to entities operating exchanges / accounts enabling cryptocurrency exchange (commissions and exchange fees).

It is worth remembering that the acquisition costs of cryptocurrencies should be reported in the PIT-38 return even if no sale of virtual currencies took place in a given year. Any such declared excess of deductible costs may be settled in the future against revenue from the sale of virtual currencies.

What if a cryptocurrency exchange goes bankrupt?

One of the common problems faced by investors is the bankruptcy of a cryptocurrency exchange where their funds were stored. After court proceedings are concluded, some taxpayers recover their assets and then decide to sell them or settle their liabilities using virtual currency, which results in income arising and the need to settle accounts with the tax office.

According to interpretations issued by the Director of the National Information Office[1], in the case of selling recovered cryptocurrencies in 2024 or later, taxable revenue subject to 19% PIT must be reported. However, the taxpayer may deduct acquisition costs from the earned revenue, i.e. the price paid to acquire the virtual currency under a transaction carried out through the bankrupt exchange, as well as commissions and other fees related to the disposal of the virtual currency.

A condition for deducting the costs of acquiring virtual currencies is that they are properly documented, for example by bank transfers to the exchange that declared bankruptcy.

Importantly, if the acquisition costs of cryptocurrencies were incurred before 2019, they did not have to be reported in the annual returns filed for earlier years. They may be declared in the PIT-38 filed for the tax year in which the disposal of the cryptocurrencies occurred.

Cryptocurrency mining, staking and NFTs – what tax obligations do investors have?

The mere moment of “mining” (original acquisition of) a cryptocurrency is not the moment when income subject to PIT arises. Income arises only when the cryptocurrency is disposed of (exchanged into FIAT or for another good or service).

As a consequence, cryptocurrency mining itself does not generate additional PIT obligations. These arise only when the mined cryptocurrency is exchanged into FIAT, another good, or a service.

It is worth noting, however, that expenses related to mining a virtual currency (electricity or equipment costs) do not constitute deductible costs.

The same applies to staking, i.e. using a given virtual currency to support other network / cryptocurrency operations, usually in return for remuneration paid in the form of virtual currency.

This position is confirmed by the administrative courts[2], which explain that income arises only when the taxpayer actually receives (or it is placed at their disposal) a specific economic benefit. Such a benefit arises when the virtual currency is exchanged for traditional currency, or when goods or services are received in exchange for it, the real value of which can be determined at the time of the transaction – which is not the case when a cryptocurrency is received through staking.

The situation is different, however, in the case of income from the sale of NFTs. In Poland there are no specific regulations concerning NFTs. Nevertheless, it is worth noting that an NFT differs from classic virtual currencies due to its individual nature and value, as each NFT may be unique.

For the above reasons, NFTs should not be treated like other virtual currencies, but rather as property rights subject to the general rules of taxation according to the 12% and 32% progressive tax scale.

Preparing the PIT-38 return – what documents are needed?

Considering the current practice of the authorities and the applicable regulations, in order to protect themselves against possible problems with the future settlement of cryptocurrencies (acquisition costs), every investor should keep proper documentation of expenses / transactions. This may include:

• confirmation of transfers to a cryptocurrency exchange,

• bank statements,

• invoices and bills confirming the acquisition of cryptocurrencies,

• transaction history from a cryptocurrency exchange,

• exchange reports / bank reports.

A lack of documentation may result in the tax office challenging the costs – it should be remembered that only documented expenses are deductible. This, in turn, may significantly increase the tax due on monetary capital income.

What are the consequences of failing to report cryptocurrencies – tax and legal consequences

It should be remembered that failing to report income from cryptocurrencies may involve tax and legal consequences.

If detected by the tax authorities, the taxpayer may potentially be exposed to:

• the obligation to pay outstanding tax (19%) together with late-payment interest;

• loss of costs and taxation of revenue instead of income, since failure to file PIT on time may make it more difficult to document purchase costs in subsequent years;

• a fine or financial penalty for failure to file the return or for filing it after the deadline;

• a penalty of restriction of liberty or imprisonment (in extreme cases, e.g. in the event of intentional concealment of high revenue).

This is all the more important due to the amendment to the Act on the Exchange of Tax Information recently signed by the President of the Republic of Poland.

The changes provide that the Polish tax authorities will automatically receive information on cryptocurrency transactions from exchanges, exchange offices, and crypto wallet operators together with their clients’ data.

Exchanges and platforms will be required to report:

• user data (e.g. first name, last name, address, identification number assigned by the country of residence, as well as date and place of birth),

• cryptocurrency balances (including the full names of crypto-assets),

• all transactions (including total amounts paid in and received, together with the number of units and the number of transactions),

• the actual market value of transactions (including those involving exchange into fiat and into other crypto-assets).

The first exchange of information is planned for 2027 and is to cover 2026 as the reporting period.

The exchange of information will concern Polish entities as well as entities from other countries participating in the information exchange mechanism (including EU countries).

FAQ

• Is cryptocurrency trading taxed in Poland?

Yes, transactions consisting of the sale / exchange of cryptocurrencies into FIAT currencies or for other services or goods are taxed in Poland.

However, the exchange of cryptocurrencies for other virtual currencies is not subject to taxation.

• Is the sale of cryptocurrencies taxed?

Yes, transactions consisting of the sale / exchange of cryptocurrencies into FIAT currencies or for other services or goods are taxed in Poland.

• Is the purchase of cryptocurrencies taxed?

No, the purchase of cryptocurrencies is not taxed. Nevertheless, the acquisition costs of a virtual currency should be reported in the annually filed tax return.

• What is the tax rate on cryptocurrencies?

The tax is 19% of the income constituting the difference between the revenue and the costs incurred in a given year and in previous years, provided they have not been deducted earlier.

• Is staking taxed?

Staking itself is not taxed. However, the sale / exchange of cryptocurrencies received through staking into FIAT currencies or for other services or goods is taxed.

• Do you pay tax on mining cryptocurrencies?

Cryptocurrency mining itself does not generate additional PIT obligations. However, the sale / exchange of mined cryptocurrencies into FIAT currencies or for other services or goods is taxed.

• What is the tax on NFTs in Poland?

As a rule, NFTs in Poland are taxed under the general rules, i.e. according to the 12% and 32% progressive tax scale.

• Does the purchase of cryptocurrencies have to be reported?

The acquisition costs of a virtual currency should be reported in the annually filed tax return.

• From what amount do you have to pay tax on cryptocurrencies?

In this case, there is no tax-free amount, so tax must be paid on every PLN 1 of income.

Settlement of virtual currencies in PIT – how can we help?

We offer comprehensive support in the field of PIT taxation of cryptocurrencies:

1. We will advise on the tax consequences of planned transactions involving virtual currencies.
2. We will prepare the annual return in which we declare revenue from the sale of cryptocurrency and / or its acquisition costs.
3. We will verify whether deductible costs related to cryptocurrency transactions may be claimed in the annual return.
4. We will check the correctness of PIT settlements concerning cryptocurrencies for previous years.
5. We will prepare a correction of the annual return for previous years in order to include all data correctly.
6. We will assess the tax obligations related to the disposal of cryptocurrencies in the context of the taxpayer’s tax residence and future plans.

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[1] Interpretation of the Director of the National Tax Information Information Office of 21 November 2024, ref. no. 0114-KDIP3-1.4011.619.2024.2.AK.

[2] Judgment of the Provincial Administrative Court in Poznań of 19 December 2024, ref. no. I SA/Po 434/24