Investment profits are cause for celebration, but in practice, they also entail a specific obligation: filing a PIT-38 tax return. For many people, this is the moment when investing becomes a source of inescapable formalities. If you've sold stocks or other financial instruments, this form is the right place to report the results of your transactions.
What is PIT-38 and who does it apply to?
The PIT-38 is a tax form intended for individuals who earn income from capital investments. You file it when you sell stocks or other financial instruments during the year. This form reports investment gains and losses, providing a summary of what happened in your investment account during the year.
Polish and foreign broker – PIT-38 is valid in both cases
Importantly, the PIT-38 form applies to both investments made through a Polish broker and those held by a foreign broker. Regardless of where you transact, you are required to file your tax return in Poland as a Polish tax resident.
If transactions were concluded with a foreign broker, remember to complete the PIT/ZG appendix. Many people only learn about this when completing their tax return, so it's worth considering it right away.
What do you enter in PIT-38?
In the PIT-38 form you indicate:
- all revenues,
- all costs,
- and the final result, i.e. profit or loss.
This is where the annual investment settlement takes the form of a specific summary of data that ultimately constitutes the result of your investment activity.
Loss? You still need to file your PIT-38.
An important rule is that even if you incurred a loss in a given year, you still need to file a PIT-38 tax return. Why? Because only then can you deduct the loss in subsequent years. In other words, filing a tax return is important not only if your investments generated a profit, but also if the year ended in the red.
Deadline for submitting PIT-38: April 30
The deadline for filing this return is April 30th. This is the cut-off date for both electronic submission and paper submission. In practice, it's worth remembering this date in advance to avoid leaving your return to the last minute.
Not sure how to properly complete your PIT-38 return? Contact our office – a tax advisor can prepare your return for you and help you navigate the entire process calmly and stress-free.
