Crypto Taxes in Poland: Complete Guide (2024)

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By Kate
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Crypto taxes in poland 2024

As a result of Poland’s clear tax guidance for digital assets and the fact that most crypto activities are legal in Poland, the country is widely considered to be crypto-friendly.

Still, even with these defined rules and regulations, businesses and users may need help navigating and interpreting the dry legal language that has become a staple of crypto taxation.

In fact, Poland was one of the first countries to introduce clear regulation for cryptocurrencies. Back in 2018, the local government released an official document providing relatively straightforward guidance on crypto taxes. 

That’s why we’re here to provide a comprehensive guide to how crypto taxes work in Poland as of 2024.

Do note, however, that the content of this blog post does not constitute financial advice. When looking for specific—rather than educational—guidance on your taxes, it is always best to consult with qualified professionals.

Key Takeaways

  • The four standard types of taxes applicable to crypto transactions are Corporate Income Tax (CIT) at 19%, Value Added Tax (VAT) at 23%, Withholding Tax (WHT) ranging from 19% to 20%, and Social Security Contributions (SSC) at 20.08%.
  • Definition of Cryptocurrencies: Poland's legal framework defines cryptocurrencies as a representation of value that can be traded for other legal assets or used in business activities. They are not considered legal tender, international units of account, electronic money, financial instruments, bills of exchange, or cheques.
  • Taxable and Tax-Free Transactions: While many crypto transactions are subject to taxation, some remain tax-free. For instance, trading crypto for fiat currencies and selling crypto assets received via airdrops or forks are taxable, whereas buying crypto with fiat currencies, exchanging one digital asset for another, transferring crypto between wallets, and receiving crypto rewards via airdrops are typically tax-free.
  • Strategies for Reducing Tax Liability: While there are no legal ways to avoid crypto taxes in Poland, investors can employ strategies to reduce their tax liability. These include offsetting losses against gains, holding onto crypto instead of selling it, and consulting with professionals for guidance on potential tax reduction methods.

How Crypto is Taxed in Poland

A subsection of Poland’s existing tax rules is widely agreed to apply to crypto, providing a clear way to understand crypto taxes in the country.

poland crypto tax

In Poland, the Tax Administration Chamber is responsible for administering all taxes. In addition, it keeps a register of all licensed crypto activities.

In general, there are four standard types of taxes that one may need to declare:

  • Corporate Income Tax (CIT) – 19%
  • Value Added Tax (VAT) – 23%
  • Withholding Tax (WHT) – 19%-20%
  • Social Security Contributions (SSC) – 20.08%

Profits obtained in the form of cryptocurrencies in Poland generally fall under the category of Corporate Income Taxes (CIT), as they are considered capital gains. Therefore, for the majority of crypto-related profit activities, companies and individuals must pay a CIT of 19%.

How Are Cryptocurrencies Defined in Polish Tax Law?

The definition of cryptocurrencies in Poland’s legal framework plays a key role in interpreting how digital assets are considered for tax purposes.

Crypto taxes in Poland fall under the scope of the country’s Personal Income Tax Act. When defining cryptocurrencies, the document refers to paragraph 26 of Article 2 of the Anti-Money Laundering and Countering the Financing of Terrorism Act.

Thus, the official definition of virtual currencies considers them to be a representation of value that can be traded for other legal assets or accepted within business activities. 

At the same time, they also come with the following characteristics:

  • Virtual currencies are not legal tender, as they are not issued by local or foreign central banks or any other public authorities.
  • Cryptocurrencies cannot be considered as international units of account.
  • They cannot be treated as electronic money, as of how it is defined by the Act on Payment Services of 2011.
  • Virtual currencies cannot be regarded as financial instruments according to the definition presented in the Act on Trading in Financial Instruments of 2005.
  • They do not represent a bill of exchange or a cheque.

What Crypto Activities are Taxed in Poland?

Cryptocurrencies are taxed in Poland across a range of different trading activities. 

Both individual and corporate traders face taxable events for activities such as:

  • Exchanging crypto for other forms of money that are considered legal tender (aka. fiat currencies).
  • Exchanging crypto for goods and services.
  • Settlement of other liabilities in crypto.

The tax rate for these activities is generally 19%.

Taxable vs Tax-Free Crypto Transactions in Poland

Not all crypto activities are taxable under the current Polish legal framework.

While this is not a comprehensive list, here are some key examples of crypto transactions that are explicitly taxable in Poland compared to activities that are typically tax-free. 

Taxed Crypto Transactions

  • Trading crypto for fiat currencies, such as the euro or Polish zĹ‚oty.
  • Selling crypto assets received via airdrops, ICOs, IDOs, forks, etc.

Tax-Free Crypto Transactions

  • Buying crypto using fiat currencies.
  • Exchanging one digital asset for another, including stablecoins.
  • Transferring crypto from one digital wallet to another.
  • Receiving different types of crypto rewards via airdrops, ICOs, IDOs, forks, etc.
  • Holding crypto.

Taxes on Specific Crypto Activities

With the overall complexity of the cryptocurrency industry, there are many other ways that one may earn digital assets. Below, we have reviewed some of the most popular ways of getting crypto and how taxes apply to them in Poland.

Mining and staking

Under Polish tax law, earning crypto through mining or staking is not automatically a taxable event. 

Rather, you only owe taxes once you exchange your earnings for fiat currencies like the Polish złoty—at which point you will have to pay a 19% tax.

Gifts, inheritance, and donations

There are no specific rules for crypto taxes in Poland when it comes to gifts, inheritance, and donations. Based on the Polish government’s definition of cryptocurrencies, it would appear that these activities are subject to the country’s standard inheritance and gift tax.

This tax may vary between 3% and 20%. Here, the specific tax rate is determined by the relationship between the parties. People with close familial ties, for instance, are subject to lower taxes.

Crypto margin trades and futures

Crypto derivatives are not subject to taxation as long as you hold them in the digital format. 

This means that you only have to pay Poland’s 19% tax when you convert your profits from crypto margin trades and futures to legal tender.

Airdrops, forks, NFTs, and other forms of crypto earnings

When you earn tokens as a result of airdrops and forks, you do not automatically owe taxes. 

As with earning crypto through other digital avenues, a taxable event is only said to occur in Poland at the point when you cash out.

This is also true in situations where any tokens or NFTs that you hold appreciate in value. This profit is only “realized” (and subject to the 19% tax) once you sell your assets for fiat.

How Can You Reduce Your Crypto Taxes in Poland?

While there are no legal ways to avoid crypto taxes while engaging in taxable activities in Poland, there are ways to reduce the amount that you owe the government.

Some strategies you can employ to pay less in taxes include:

  1. Offsetting losses. If you bear any losses while trading crypto, you may use them to offset your taxable crypto gains.
  2. Holding crypto instead of selling it. In Poland, you only have to pay taxes on your crypto gains when you convert them into cash. Thus, holding onto your existing coins or strictly trading between digital currencies can be a way to postpone facing a taxable event.

The Polish government provides a few other ways of reducing your taxes, though it is unclear whether these cases apply to crypto profits. Therefore, it may be worth consulting with a professional for guidance on lowering your tax liability.

How to Calculate Your Crypto Taxes

Here is an illustrative example of how you can calculate your crypto taxes in Poland in 2024. 

In this example, let’s assume that you’ve purchased PLN 20,000 worth of BTC. During the same year, the price of bitcoin rose and you managed to cash out for PLN 25,000.

In addition, you’ve received some tokens from airdrops, which you cashed out for PLN 2,000.

Thus, your taxable crypto profits this year can be calculated as follows:

(25,000 - 20,000) + 2,000 = PLN 7,000

In this instance, with the flat tax rate of 19%, you would owe 1330 PLN (7,000 * 0.19).

When Should I Report Crypto Taxes in Poland?

According to the Polish Ministry of Finance, the tax return for income or losses should be reported between February 15th and April 30th following the previous fiscal year. 

If April 30th falls on a weekend or a holiday, the deadline for submitting tax returns moves to the next working day.

It is also important to note that lump-sum taxes on crypto revenues are subject to a shorter time frame, as you have to submit your earnings between February 15th and February 30th.

How Can I File Crypto Taxes in Poland?

In general, there are three methods of submitting a tax declaration (PIT) in Poland, which you can use to report and pay profits on your crypto earnings.

1. Filling your taxes in paper format

To file your taxes the traditional way, you can go to your local tax office and fill in a physical form.

To do so, you need to download and print a relevant declaration, i.e. PIT-36, PIT-37, PIT-38, or PIT-39—which can be found on podatki.gov.pl.

You would then need to fill in the required information, sign the paper, and bring your printed form to the local tax office. We recommend making at least two copies of the declaration, so that you can hold onto a stamped proof of submission from the tax officer.

2. Filling via an electronic bank account

In Poland, you have the option to save time by filling your taxes through an online portal or a specific application. 

Many banks offer a service called “Trusted profile” (Profil Zaufany). This is a method of ID verification that makes it possible to conduct tax activities online. 

poland crypto taxes 2024

To submit your crypto taxes, you will have to provide the following information:

  • Your PESEL or NIP number.
  • Your income for the past two years.
  • The amount of due or overpaid tax from the period preceding the reporting year.

3. Filling your crypto taxes through an e-declaration form 

Finally, individuals may also submit their taxes through a dedicated governmental portal. 

This is known in Poland as an e-Pit, and can be filled by following these steps:

  1. Download a relevant declaration at podatki.gov.pl.
  2. Complete the form with the correct information.
  3. Sign the document.
  4. Submit it via the official web service.

Getting Paid a Salary in Crypto in Poland

In Poland, it is possible to receive your salary in crypto. Yet, in some cases, a portion of your salary still has to be paid in fiat.

For instance, if a company hires you through an employment contract, they are obligated to pay you at least the minimum wage in Polish złoty. Any amount paid in addition to this amount can be paid to you in crypto. 

In some instances, you can even have your entire salary paid to you with digital assets. These cases include contracts for specific work, mandate contracts, and contracts for the provision of services (b2b).

How to Register a Crypto Company in Poland

Opening a crypto company in Poland is not much different from registering any other LLC. In Poland, these companies are referred to as virtual asset providers (VASPs).

Here is a brief overview of the key steps that you have to take in order to register your crypto business.

1. Check the requirements specific to crypto companies

In Poland, a VASP must:

  • Write a business plan that includes documentation about the hardware and software that you are going to use for crypto-related activities.
  • Establish internal processes that will help you meet the AML/KYC requirements.
  • Employ a dedicated AML officer with relevant experience.
2. Prepare the required data

The local authorities require new businesses to submit a set of documents and other pieces of data about your company that include (but are not limited to):

  • A scan of your passport
  • Personal information (KYC) of other key members/shareholders
  • The criminal record of the director (in some cases)
  • Information about your business
  • A corporate bank account
  • A business plan
  • A VAT number
  • A REGON (statistical) number
  • A NIP (tax identification) number

All of your documents have to be translated into Polish and be presented with a verified copy.

3. Get an electronic signature

In Poland, you may easily access local governmental services with the help of an e-signature. 

When selecting a provider, make sure the company has a valid NCCert certificate.

4. Submit the documents to the financial authority

The final step is to submit your documents with Poland’s National Court Register (KRS), and pay the registration fee of PLN 500.

If the documents that you have submitted meet the criteria, you should be issued with a VASP license that allows you to operate a crypto business in Poland.

This process can take a few months, and can become complicated if you run into hurdles. Depending on your circumstances, it might be worth consulting with a qualified specialist to give you personalized professional guidance.

The Future of Crypto Taxes in Poland

Despite Poland’s status as a crypto-friendly country, regulation could become more strict over the next few years.

According to Finance Magnates, the Polish Financial Supervision Authority (KNF) plans to start supervising digital assets by the end of 2024.

While this could add further legitimacy to the landscape and simplify the process of calculating your crypto taxes in Poland, it could also create additional obstacles for crypto businesses and traders.

This move comes as a response to changes in EU regulation that were approved in May 2022. As a result of the Council of the European Union adopting clearer rules for the crypto industry, the EU’s member nations may have to alter their own approaches.

https://twitter.com/EUCouncil/status/1658398866037698561

In addition, Poland is a member of the Organization for Economic Cooperation and Development (OECD), which released a Crypto-Asset Reporting Framework in August 2022. This new set of rules could make crypto taxation more transparent.

FAQs

What are crypto taxes in Poland in 2024?

Both companies and end-users have to pay a flat rate of 19% on the profits they earn from crypto. 

Taxable events only take place when you convert your digital assets into recognized legal tender. Earning and selling crypto is not subject to taxes until you sell.

Is crypto legal in Poland?

Yes, you can legally invest in cryptocurrencies in Poland. 

The country is considered to be crypto-friendly, with it being completely legal to engage in crypto activities like minting, taking part in airdrops, mining, staking, trading, and paying for goods and services.

Are cryptocurrencies subject to VAT in Poland?

No, crypto-related activities are exempt from Value Added Tax (VAT).

Are crypto gifts tax-free in Poland?

There are no specific rules on the taxation of crypto gifts. However, Poland’s existing laws should apply in these cases. 

This would mean paying between 3% to 20% in tax on gifts and inheritance, depending on the relationship between you and the person you are transacting with.

Can I launch a crypto company in Poland without Polish citizenship?

Yes, you can. Moreover, you don’t even need to have a Polish residence to obtain a virtual asset provider (VASP) license. 

However, citizens of some sanctioned regions may face legal limitations. We advise consulting with a local professional for guidance specific to your situation.

Can a crypto company get a traditional bank account for its crypto earnings?

No, it can’t. Local banks are not eager to work with such high-risk assets and do not offer any help in maintaining the financial infrastructure for them.

How long is a crypto license valid in Poland?

Once you get a VASP license in Poland, you can use it for an indefinite period of time.

How much does a crypto license cost in 2024?

When registering a crypto company in the National Court Register, you have to pay a registration fee of PLN 500.

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Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.

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Kate

Kate is a blockchain specialist, enthusiast, and adopter, who loves writing about complex technologies and explaining them in simple words. Kate features regularly for Liquid Loans, plus Cointelegraph, Nomics, Cryptopay, ByBit and more.

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