Crypto Tax Declaration in Poland

As cryptocurrencies continue to gain popularity in Poland, so do the tax regulations surrounding them. Whether you're trading Bitcoin, holding Ethereum, or engaging with decentralized finance (DeFi), understanding your tax obligations is essential. This guide breaks down the key rules for declaring crypto assets in Poland.

1. Do You Need to Declare Crypto in Poland?

Yes. If you are a Polish tax resident and have conducted any cryptocurrency transactions—such as buying, selling, exchanging, or using crypto to pay for goods or services—you are required to declare those activities to the tax authorities.

You must report these activities in your annual tax return, even if your overall financial operations resulted in a loss.

2. Taxable Crypto Activities

The following crypto-related actions are taxable in Poland:

• Selling cryptocurrency for fiat currency (e.g., PLN, EUR)
• Exchanging one cryptocurrency for another
• Paying for goods or services using crypto
• Earning income from mining or staking
• Receiving tokens via airdrops (in some cases)
• Participating in DeFi protocols that generate income

Simply holding cryptocurrencies is not a taxable event.

3. Tax Rate on Crypto Gains

Cryptocurrency profits in Poland are taxed at a flat rate of 19%. This rate applies regardless of your overall income level.

There is no health insurance or social security contribution levied on crypto income, making it a relatively straightforward tax category compared to others.

4. How to Report Crypto in Your Tax Return

You need to use the PIT-38 form, which is intended for capital gains. On this form, you will:

• Report total revenue from crypto transactions
• Report total allowable expenses (such as purchase costs and exchange fees)
• Calculate the net gain or loss
• Apply the 19% tax rate to net profits

If you made a loss, you should still report it, as it may reduce your taxable base in future years.

5. When to File

The tax filing window in Poland is typically:

• From 15 February to 30 April for the previous tax year

If the 30 April deadline falls on a weekend or public holiday, it is extended to the next working day.

6. Record Keeping Requirements

The Polish tax authorities expect accurate documentation of all crypto transactions. Recommended records include:

• Transaction dates
• Type of asset and quantity
• Counterparties (where known)
• Value in PLN at the time of transaction
• Exchange fees or costs

Maintaining a clear audit trail is essential in case of a tax inspection.

7. How to File

You can file your PIT-38 tax return through:

• The e-Deklaracje system (official tax portal)
• Twój e-PIT service, which may pre-fill some fields
• Paper filing at your local tax office

Many taxpayers use specialized crypto tax software (e.g., Koinly, CoinTracking) to calculate gains and generate compliant tax reports.

8. Penalties for Non-Compliance

Failure to declare your crypto activities can result in:

• Financial penalties
• Late interest charges
• In severe cases, criminal proceedings

With the EU’s DAC-8 directive increasing transparency, Polish authorities now have access to more cross-border crypto transaction data—so non-disclosure is increasingly risky.

9. Crypto Gifts and Inheritance

If you receive crypto as a gift or inheritance, you may also need to report it under separate rules. In many cases, the tax obligation depends on your relationship to the giver and the amount received.

10. Conclusion

If you're active in the crypto space and reside in Poland, it's your legal obligation to declare your cryptocurrency income or losses each year. By keeping accurate records and using the PIT-38 form correctly, you can ensure full compliance and avoid penalties.

When in doubt, consult a tax advisor familiar with crypto assets and Polish law.

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