Practical tips from Krzysztof Burzyński, tax advisor and partner at BTTP
Settling cryptocurrencies in the annual PIT return for 2024 may be difficult, so it is worth making sure now how to correctly fill out the PIT-38 form. The deadline for submitting the declaration is April 30, 2025, and incorrect settlement may result in high penalties.
When do you have to file PIT-38?
If you sold cryptocurrencies or paid for goods or services with them in 2024, you must report these transactions as income. Even if you only bought cryptocurrencies, such as bitcoin, ethereum or stablecoins, you still need to include the costs incurred. We report all of this in PIT-38 - even if we have not yet earned income.
The most common mistakes – what do we miss in the calculation?
Taxpayers often forget about the obligation to account for cryptocurrency payments for goods or services. It is also worth remembering that exchanging one cryptocurrency for another is tax neutral - it does not have to be reported.
What expenses can be deducted?
The cost may be not only the costs of buying cryptocurrencies, but also the commissions charged by exchanges - both when buying and selling. Omitting these costs results in a higher tax, because the tax office will charge it on the entire income, not on the real profit.
At what rate should transactions be converted?
Revenues and costs expressed in foreign currencies (e.g. USD, EUR) must be converted according to the average NBP exchange rate from the day preceding the transaction. The exception are transactions directly in PLN - these can be reported without conversion.
Crypto income abroad – what about tax in Poland?
A Polish tax resident must report global income, including cryptocurrencies. If tax was paid abroad, it can be deducted in PIT-38 – provided that Poland has concluded an appropriate double taxation treaty with the country in question.
Did you just buy? You also file a tax return
If you bought cryptocurrencies in 2024 but didn't sell them, you still have to file PIT-38 and show the costs. What's more - if you incurred costs in previous years but didn't show them - you should file overdue declarations and active regret.
Have unclaimed costs from before 2019? Last call!
Some investors forgot about the costs of acquiring cryptocurrencies incurred before 2019 – e.g. in 2017–2018. The good news is that they can still be settled in the PIT-38 for 2019. But be careful – at the end of 2025, tax liabilities for 2019 expire, which means that if we do not report these costs by that time, we will irrevocably lose the possibility of deducting them. If an investor is interested in settling the costs of acquiring crypto in 2019 and earlier years, and has not reported them so far, they should submit the appropriate PIT-2025 for 38 and subsequent years by the end of 2019.
Losses? Only costs
In the case of cryptocurrencies, we do not show losses – only costs that can be carried forward to subsequent years. If costs exceeded revenues in 2024, we show them as “costs incurred in previous years.”
Income above PLN 1 million? Beware of the solidarity tax
Crypto income above PLN 1 million means the obligation to pay an additional 4% solidarity levy – but only on the excess.
Controversial gas fees
Currently, tax authorities treat gas fees as income, which can be burdensome for traders. Fortunately, administrative courts are increasingly agreeing with taxpayers, ruling that these fees are not income. However, the case remains open.
You didn't file your taxes? The tax office can collect 75 percent of your tax
Failure to settle crypto can have serious consequences, from financial penalties to a punitive 75 percent tax. The office can also check the source of funds, for example, if you bought an expensive car or property.
More details:
https://businessinsider.com.pl/prawo/podatki/podatek-od-kryptowalut-jak-rozliczyc-w-pit-za-2024-r-i-uniknac-bledow/gww3wqq
