As of 2019 in Poland, cryptocurrency gains must be recorded as capital gains on one’s personal income tax declaration. Some of the most important details for submitting cryptocurrency tax returns in Poland are listed below.
CRYPTOCURRENCY AND PIT
Possession of cryptocurrencies must be recorded in the PIT-38 form. This form is intended for taxpayers who have earned income or incurred deductible expenses from the disposal of virtual currencies.
They are to be recorded in the section E. designated for virtual currencies:
TRANSACTION HISTORY
It is crucial to provide one’s cryptocurrency purchase history in an attachment. This history may be then listed in the PIT form as an expense for generating income when selling your cryptocurrencies. This attachment must include information about the type and amount of cryptocurrency purchased.
Examples of documents that can be cited as transaction history include: the receipt received from the cryptocurrency exchange service at the time of the transaction, email confirmation or transaction history obtained from a cryptocurrency exchange, or from other platforms, through which the purchase of a good or service was conducted.
When should one track their transaction history to include in their personal income tax form?
It is required to track each and every transaction, regardless of the number of transactions:
- If a person purchases BTC, and simply holds it, this transaction has to be recorded in the PIT form.
- If a person purchases ETH, then converts it another cryptocurrency:
For example, if one purchases ETH, trades it for USDT, then the USDT for BTC. All of these individual transactions are to be recorded within the form.
It is worth reminding, if one does not keep their history of transactions, they cannot use it as an expense for generating income upon sale.
This concludes some of the important details for filing a cryptocurrency tax return in Poland. This series has two more articles that will further explain how to account and tax cryptocurrencies.
