How to calculate tax on cryptocurrencies in Poland – step by step

More and more Poles are investing in cryptocurrencies – often without realising, however, that every sale or payment using crypto can be subject to tax. Even if you don't withdraw funds to your account, the tax office may expect you to declare it. When do you have to pay tax? How do you declare the purchase of cryptocurrencies? We'll tell you!

When is it necessary to declare cryptocurrency?

The tax liability arises at the moment of selling cryptocurrencies for traditional currency, e.g. PLN, EUR, or USD. Payment with digital currency for a product or service is also treated as a taxable disposal and is subject to taxation.

Transactions are settled in the PIT-38 form, whether you are an individual investor or conduct business (this does not apply to entities conducting business under Article 2(1)(12) of the AML Act, e.g., exchanges/bureaux, which are subject to PIT-36/PIT-36L).

Important! Every sale generating revenue must be accounted for. The number or value of the transaction is irrelevant. Even if you don't make a profit, but incur costs, you must file a return.

It should also be remembered that the tax obligation applies to sellers, as well as those who transferred cryptocurrencies as remuneration or in exchange.

A crucial point is also that digital currencies are not linked to other income, such as from employment or business. The tax office treats them separately as capital assets.

Do I need to report the purchase of cryptocurrencies?

Buying cryptocurrency should Include in the annual tax return PIT-38, even if they have not yet been sold. The tax return should show incurred Purchase costs, which in the future can be settled as the cost of obtaining income from the sale of cryptocurrencies.

However, the mere fact of purchase does not give rise to income or a tax liability – the tax obligation arises only when cryptocurrencies are sold or exchanged.

The tax liability only arises upon the sale or payment of cryptocurrency. In practice, most investors do not declare purchases, and the tax office does not require it. However, it is worthwhile to keep documentation confirming each transaction. Consciously hiding income from digital currencies can result in financial penalties – fines and tax interest charged for each day of delay. In more serious cases, the tax office may initiate criminal and tax proceedings, which are punishable by a fine or even restriction of liberty.

In more serious cases, the tax office may initiate criminal tax proceedings, which carry the risk of a fine, and in extreme situations, even a prison sentence of up to 5 years. Failure to declare the purchase of cryptocurrencies on the annual PIT-38 tax return can be treated as a tax misdemeanor or a tax offence – depending on the scale and intent of the actions.

How to document the purchase of cryptocurrency

To correctly account for taxes, you must keep accurate records of transactions. How do you do this?

• The basis for the documentation is proof of purchase transactions – bank statements, screenshots from exchanges, transaction emails. Make sure to collect and store them in a secure place.
• It is also important to record the date of purchase, the number of tokens, their value at the time of acquisition, and the transaction currency.
• The exchange rate for the operation should be calculated according to the average exchange rate of the National Bank of Poland (NBP) from the last working day preceding the purchase.
• Every proof of execution of an operation should clearly indicate that a cryptocurrency was actually purchased on specific terms.

A lack of proper documentation can cause numerous problems during the settlement stage. Therefore, if you want to avoid them, ensure you have reliable statements and keep them with due diligence – preferably with the help of an accountant. We will present you with proven recommendations in this area that will minimise the risk of errors.

How to account for the purchase of cryptocurrencies?

Cryptocurrency tax returns require, first and foremost, the correct completion of the declaration. In Part E of the form, you enter income, expenses, and the result (profit or loss). Income is the amount obtained from selling cryptocurrencies, and expenses include the purchase of currencies and commission fees.

Amounts must be converted into zloty according to the NBP exchange rate from the business day preceding the transaction.

If you do not achieve income in a given year but incur purchase costs, you can still declare them in PIT-38. The excess costs are carried forward to the next year.

Remember! Exchanging one cryptocurrency for another is not subject to taxation. Furthermore, expenses related to swapping crypto for crypto are not treated as costs. You can omit such a transaction in your tax return.

What is the tax on cryptocurrencies?

In Poland, the tax on income from cryptocurrencies is 19%. This is a flat rate, regardless of the amount of income. This applies to everyone, regardless of whether it's your sole source of income or you have several. The tax-free allowance does not apply here. Therefore, all income from the profitable disposal of cryptocurrencies must be declared in full.

In addition, if a taxpayer’s total income exceeds PLN 1,000,000 per year, they will be required to pay the so-called solidarity levy (amounting, in this case, to 41% of the amount by which total income exceeds PLN 1,000,000).

Important! The tax is paid in a single instalment, with no advance payments during the year.

How to pay tax on cryptocurrency?

You can file your PIT-38 tax return electronically via e-Deklaracje or Twój e-PIT. You must submit the form by 30 April of the year following the tax year in question. After calculating the tax, you can pay it in cash (e.g. at a post office) or cashless (including via bank transfer, BLIK, or payment card).

Remember to enter the correct account number when transferring funds. You can generate a tax micro-account at the office or via an online generator. Also, enter the correct transfer title – it's best to specify what you are settling (e.g. PIT-38), your details (e.g. PESEL), the settlement period and the amount due.

Cryptocurrency accounting – the most common mistakes

Cryptocurrencies, as a relatively new way of placing capital and investing, give rise to a number of problems for those settling accounts. Which of these are the most common?

• Lack of documentation for cryptocurrency purchase costs – many investors only keep data in spreadsheets, which is not sufficient. An official expects formal proof, such as transfers, exchange confirmations, and transaction emails.
• The demonstration of income from crypto-to-crypto exchange is a tax-neutral operation.
• Excluding losses from previous years – they can reduce income, so it's worth declaring them
• A lack of tax return when there was no income – many people forget that this does not absolve them of the obligation to file the appropriate declaration.
• Formal errors (e.g. missing signature) – can even lead to the declaration being rejected.
• When costs are settled without documentary evidence supporting the right to apply specific calculations, the tax office may challenge the contents of the tax return.

If you don't want to make mistakes when declaring cryptocurrency, use online accounting services. We will help you ensure the timeliness and correctness of your tax returns for the past year, as well as for subsequent years. With our support, you will minimise the risk of errors in your tax declarations.

Do you pay tax on Bitcoin or other crypto? See how to do it right

Self-assessing cryptocurrency taxes might seem straightforward until complex cases arise: a large number of transactions, various exchanges, losses from previous years, or stablecoin operations. If you lack tax experience, it's worth seeking accounting support – ideally from an agency that serves clients investing in crypto, and that's precisely what we specialise in!

Our accountants will help you correctly calculate your income, account for all expenses, handle the paperwork, and guide you through the entire process step by step. You will avoid the risk of making mistakes with NBP exchange rates, incorrectly totalling data, or wrongly declaring a loss.

Importantly, an accountant can also complete the tax return for you and send the PIT-38 to the tax office if you grant them power of attorney (form UPL-1). This gives you confidence in the correctness of the documents and saves you time.

Remember that even minor errors in your tax return can be flagged during an audit and may result in fiscal penalties, which are definitely best avoided!

Accounting support is particularly useful if you invest regularly, trade with a larger capital, or are filing cryptocurrency taxes for the first time. Our accounting firm, which understands the crypto industry, will also help you prepare for the next year – establishing accounting methods, document archiving rules, and deadlines for actions. Instead of stressing about taxes in April, you can calmly focus on market analysis, knowing that your tax security is in good hands.

Cryptocurrency tax returns require attention, but they don't have to be difficult. The most important thing is meticulous documentation and knowledge of the applicable rules. If you don't have time or get lost in the process, use the help of an online accounting firm. Our team of accountants handles such settlements comprehensively and remotely, which will save you a lot of time. Contact us to discuss the details!

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