The sale and purchase of cryptocurrencies is reflected in the PIT declaration. The tax office will check it
In your income tax return, you must report both profit and loss on cryptocurrencies. Both versions of events are of interest to the National Tax Administration.
The units are conventional, the accounting system is distributed, but trading, investing and mining cryptocurrencies is associated with tax obligations every year, regardless of whether the transaction ends in a profit or a loss.
In Poland, in accordance with banking law, cryptocurrencies are not recognized as legal tender, which means that they do not have official average rates published by the National Bank of Poland.
The burden of tax calculations rests with the taxpayer
The purchase of cryptocurrencies must be reported in the tax return, even if it was not sold in a given tax year. And so there is an obligation to submit a PIT-38 and show the acquisition costs. These costs can be settled in subsequent years when sales revenue appears.
Cryptocurrency purchases are documented by confirmation of bank transfers to a cryptocurrency exchange account, or electronic statements from exchanges that show transaction details. Transaction values in foreign currencies should be converted into Polish zloty at the average NBP exchange rate from the last business day before the date of obtaining the income or expense. Deadlines, the right form and correct cost accounting are key. Stock exchanges do not issue PIT-8C or PIT-11 information, so the burden of correct calculations rests with the taxpayer.
Which expenses are documented and how?
Converting one virtual currency to another does not result in tax. Selling for traditional currency, paying for a good or service in crypto, or settling an obligation with it is one thing.
A tax declaration is also submitted for transactions carried out as part of a business activity, with the exception of entities operating under anti-money laundering regulations that settle turnover within the company. The tax is 19 percent. income (revenue minus documented acquisition costs and commissions), without tax allowance.
In the case of cryptocurrency trading, no loss is formally reported. Costs include documented purchase expenses and intermediary commissions and fees. However, the costs of purchase loans, expenses for mining equipment and electricity bills are not taken into account.
