A Crypto Tax Information for Poland

With restricted steerage from Krajowa Administracja Skarbowa (KAS), determining crypto tax in Poland is not any straightforward feat. That’s why we’ve teamed up with crypto tax calculator Koinly to interrupt down the fundamentals of crypto taxation in Poland, together with how crypto is taxed and needs to be filed.

Necessary: Koinly and Nexo don't supply tax recommendation. This text will not be supposed as monetary recommendation or a personalised advice. All the time seek the advice of a tax skilled for steerage particular to your state of affairs.

In Poland, crypto is taxed at a flat 19% on any positive factors from changing crypto to fiat forex (like PLN or EUR). Taxable occasions embody:

• Exchanging crypto for fiat

• Utilizing crypto to purchase items, providers, or property

• Settling money owed with crypto

Nevertheless, crypto-to-crypto trades are tax-free.

 There’s no separate Capital Positive aspects Tax charge, crypto positive factors are taxed at the usual 19% charge.

To calculate your capital achieve or loss from a given transaction, use the next components:

Capital Achieve/Loss = Promoting Value – Buy Value

In case you in any other case disposed of your crypto (for instance, spending it on items or providers), then the promoting worth refers back to the truthful market worth of your cryptocurrency on the time you disposed of it.

Conversely, in the event you in any other case acquired your crypto (for instance, by an airdrop), as these are handled as non-taxable, in most cases, they've a zero price foundation except you've gotten allowed bills straight associated to the acquisition or sale of the asset.

Nevertheless, Poland has a really particular accounting technique and reporting requirement for reporting crypto transactions.

KAS are fairly clear that in relation to reporting crypto – you’ll report all prices from crypto and all gross sales from crypto. Prices refers to all purchases of crypto and any allowable bills, whereas all gross sales is pretty self-explanatory. All this must be aggregated and reported on an annual foundation. No matter whether or not you haven't any revenue in a given 12 months, you'll nonetheless have to report any prices.

Successfully, Poland makes use of the mixture prices technique for accounting with regard to crypto taxation. Take into consideration that that is totally different from FIFO (first in, first out), and FIFO will not be talked about in Poland’s official steerage on crypto taxation.

You should utilize the next components to find out your taxable revenue from crypto.

Earnings from crypto gross sales = Complete income from gross sales within the 12 months – Tax-deductible prices within the 12 months

If, in a given 12 months, your bills for buying digital currencies exceed the revenue from promoting them (or in the event you don’t generate any revenue from crypto gross sales that 12 months), the surplus prices will be carried ahead to the following tax 12 months. Within the following 12 months(s), you'll be able to deal with this surplus as a part of your common tax-deductible prices, identical to any new acquisition prices incurred throughout that 12 months.

Solely bills straight associated to the acquisition and sale of digital currencies will be included as tax-deductible prices.

You can not embody prices associated to financing crypto purchases (akin to loans or credit). Equally, in the event you purchase digital currencies by mining, bills for mining gear and electrical energy used for mining aren't deductible. Prices from exchanging one digital forex for one more are additionally excluded from tax-deductible bills.

KAS steerage is kind of restricted on this sense however doesn't differentiate tax remedy for various sorts of crypto property, for instance, NFTs, stablecoins, tokens, and so forth. As such, beneath the present steerage, it’s doubtless that every one crypto property are handled the identical from a tax perspective. 

Once more, the steerage from KAS is restricted, however as KAS solely treats conversions from crypto to PLN (or different fiat currencies) as taxable occasions, it’s usually understood that incomes new tokens – akin to by airdrops – can be handled as non-taxable occasions. Nevertheless, it’s doubtless as you incurred no prices for these transactions, they'd be handled with a zero price foundation.

In Poland, you report your crypto prices and gross sales in your PIT-38 tax return between February 15 and April 30.

• Preserve data of all transactions, together with timestamps, values, and costs.

• Seek the advice of a tax skilled in the event you interact in advanced buying and selling or DeFi actions.

• Use Koinly to automate calculations and guarantee compliance.

📌 Begin calculating your crypto taxes with Koinly today!

The knowledge on this article is for normal info solely. It shouldn't be taken as consulting skilled recommendation from both Nexo or Koinly. Neither Nexo nor Koinly is a monetary adviser. You need to take into account looking for impartial authorized, monetary, taxation, or different recommendation to examine how the web site info pertains to your distinctive circumstances.