How to Report Crypto Taxes in Poland – PIT-38 Guide

Reporting cryptocurrency taxes in Poland is a topic that keeps many investors up at night. Since 2019, clear regulations have governed the taxation of gains from virtual currencies, but in practice, maintaining transaction records and completing the PIT-38 form can be complicated – especially if you trade on multiple exchanges and use DeFi. This guide explains step by step how to properly report your cryptocurrency taxes.

Legal Framework

Cryptocurrency taxation in Poland is regulated by the Personal Income Tax Act (PIT), amended by the act of October 23, 2018. Key provisions:

• Art. 17 sec. 1 point 11 – income from the disposal of virtual currencies is classified as income from capital gains
• Art. 22 sec. 14-16 – deductible costs for virtual currencies
• Art. 30b sec. 1a – tax rate of 19%

Definition of Virtual Currency

Under the Anti-Money Laundering Act (AML), a virtual currency is a digital representation of value that:

• Is not legal tender
• Is not electronic money
• Can be exchanged for legal tender
• Is accepted as a medium of exchange

Bitcoin, Ethereum, stablecoins (USDT, USDC), and other tokens meet this definition.

What Is Taxable?

Taxable Events (Generating Income):

1. Selling cryptocurrency for PLN, EUR, or another fiat currency – e.g., selling BTC for PLN on Binance
2. Paying with cryptocurrency for goods or services – e.g., buying a laptop with BTC
3. Exchanging one cryptocurrency for another – e.g., swapping ETH for USDC (this has been taxable since 2019!)

Events That Are NOT Taxable:

1. Buying cryptocurrency with PLN – a purchase alone does not generate income
2. Transferring cryptocurrency between your own wallets – moving BTC from Binance to a Ledger
3. Receiving cryptocurrency as a gift – subject to gift/inheritance tax, not PIT
4. Airdrops – taxed only upon disposal

Income and Costs

Income

Income from the disposal of virtual currency is the value received in return – in PLN or converted at the average NBP exchange rate (for foreign currencies).

Deductible Costs

Deductible costs are documented expenditures for acquiring virtual currency:

• The amount paid to purchase cryptocurrency
• Exchange commissions
• Blockchain transaction fees (gas fees)
• Costs of acquiring virtual currency incurred before exchanging it for another virtual currency

Important: Costs MUST be documented. Accepted documents include:

• Transaction confirmations from exchanges (trade history)
• Blockchain wallet statements
• Invoices for mining equipment (if applicable)

Tax Loss

If costs exceed income, you have a tax loss. Crypto losses can be deducted over the following 5 tax years, but only against cryptocurrency income (not other sources of income).

How to Calculate Tax – Examples

Example 1: Simple Buy and Sell

• You buy 0.5 BTC for 50,000 PLN (commission: 100 PLN)
• You sell 0.5 BTC for 75,000 PLN (commission: 150 PLN)

Income: 75,000 PLN Costs: 50,000 + 100 + 150 = 50,250 PLN Profit: 75,000 - 50,250 = 24,750 PLN Tax (19%): 4,702.50 PLN

Example 2: Crypto-to-Crypto Exchange

• You buy 10 ETH for 40,000 PLN
• You swap 10 ETH for 2 BTC (value at time of swap: 60,000 PLN)
• You sell 2 BTC for 80,000 PLN

Transaction 1 (ETH→BTC swap): Income: 60,000 PLN Cost: 40,000 PLN Profit: 20,000 PLN

Transaction 2 (BTC sale): Income: 80,000 PLN Cost: 60,000 PLN (value at time of BTC acquisition) Profit: 20,000 PLN

Total profit: 40,000 PLN Tax (19%): 7,600 PLN

Example 3: DCA Strategy

If you buy regularly (e.g., weekly), you have many purchase transactions at different prices. Polish regulations do not explicitly specify a valuation method (FIFO/LIFO), but tax office practice points to FIFO (First In, First Out) – you sell the units you bought earliest first.

PIT-38 Step by Step

When to File?

By April 30 of the year following the tax year. For the 2025 tax year – by April 30, 2026.

Where to Report Cryptocurrency?

On PIT-38, in Section E (Income/losses from the disposal of virtual currencies):

• Line 34 – Income from the disposal of virtual currencies
• Line 35 – Deductible costs
• Line 36 – Profit (line 34 - line 35, if positive)
• Line 37 – Loss (line 35 - line 34, if negative)

Do I Need to File PIT-38 If I Had No Profits?

Yes, if you made disposal transactions (sales, swaps). Even with a loss, you must file – this is important for deducting the loss in future years.

Do I Need to File PIT-38 If I Only Bought?

No. Simply purchasing cryptocurrency does not create a tax obligation.

Problematic Scenarios

Staking

Staking rewards (e.g., ETH staking) are treated as capital gains income. They are taxed at the moment of receipt at market value. Deductible cost = 0 PLN (you incurred no acquisition expense).

Mining

Cryptocurrency obtained from mining is taxable upon disposal. Deductible costs may include documented expenditures on equipment and electricity.

DeFi – Yield Farming, Liquidity Providing

This is a tax grey area. Every DeFi interaction (adding liquidity, claiming rewards, DEX swaps) may constitute a taxable event. Recommendation: document everything and consult a tax advisor if in doubt.

NFTs

Buying and selling NFTs follows the same rules as other cryptocurrencies. NFT sale income minus acquisition cost equals profit taxed at 19%.

Cryptocurrency Received as a Gift

Subject to gift/inheritance tax (not PIT). Upon later sale, the deductible cost is the value on the date of the gift (or the amount paid by the donor – depends on interpretation).

How to Maintain Transaction Records

What to Document

For each transaction, record:

• Date and time
• Transaction type (buy/sell/swap)
• Amount of cryptocurrency
• Unit price and value in PLN
• Commissions
• Exchange/platform
• Blockchain transaction hash (optional but useful)

Record-Keeping Tools

• Spreadsheets – simplest but time-consuming
• Dedicated software – Koinly, CoinTracker, Accointing
• Exchange exports – Binance, Bybit, and other exchanges offer CSV trade history exports

If you use Freenance for portfolio tracking, its integration with Binance and Bybit automatically pulls your transactions, significantly simplifying tax preparation.

Common Mistakes

1. Not filing PIT-38 – even with a loss or small gains, you must file
2. Ignoring crypto-to-crypto swaps – every swap is a taxable event
3. Lack of cost documentation – without proof, you cannot deduct costs
4. Double-counting costs – acquisition costs can only be deducted once
5. Confusing transfers with transactions – moving crypto between your own wallets is not a taxable transaction
6. Ignoring commissions – exchange fees and gas fees are deductible costs

Consequences of Non-Compliance

Failing to file PIT-38 or underreporting cryptocurrency income may result in:

• Fines (up to 720 daily rates)
• Interest on tax arrears
• Criminal-fiscal proceedings

Tax offices have increasingly sophisticated tools for identifying cryptocurrency transactions. Regulated exchanges (KYC/AML) share data with tax authorities. It is best to report honestly from the start.

Tax Planning

Legal Optimization Strategies:

1. Harvest losses – sell assets at a loss before year-end to offset gains
2. Defer sales – if possible, delay profit realization to the next tax year
3. Utilize prior-year losses – remember to deduct losses from the last 5 years
4. Document all costs – commissions, gas fees, tool subscription costs

Tax Advisor

For complex portfolios (DeFi, multiple exchanges, mining), consulting a tax advisor specializing in cryptocurrencies is worthwhile. The consultation cost (200-500 PLN / ~50-120 EUR) is negligible compared to potential penalties.

Regulatory Changes – What to Expect

The European Union is implementing MiCA (Markets in Crypto-Assets) regulations that will affect the crypto market in Poland:

• Standardized requirements for exchanges and token issuers
• Automatic exchange of tax information between countries (DAC8)
• Possible simplification of tax reporting

It is worth following legislative changes, as they may both simplify and complicate reporting.

Summary

Reporting cryptocurrency taxes on PIT-38 does not have to be a nightmare if you approach it systematically:

1. Document continuously – do not wait until year-end
2. Use tools – Freenance with Binance/Bybit integration, spreadsheets, dedicated software
3. Remember swaps – crypto-to-crypto is also a taxable event
4. File PIT-38 – even at a loss
5. Consult a specialist – for complex portfolios

Honest reporting from the start is the best strategy. Penalties for hiding cryptocurrency income are increasing, and tax office analytical tools are becoming more effective.