Investments in cryptocurrencies. The taxpayer must settle his accounts with the tax authorities, even if he has not received any income


Taxpayers who buy and sell cryptocurrencies should remember to submit an annual tax return on Form PIT-38 by May 2. This obligation does not only apply to people who have obtained income by exchanging virtual money in the last year. This also affects taxpayers who have only purchased cryptocurrencies – explains Piotr Juszczyk, chief tax adviser at inFakt.

Cryptocurrencies and income. What tax on cryptocurrencies?

It should be remembered that the exchange of one cryptocurrency for another does not create tax liability, whether done on the stock exchange or individually. Thus, if the taxpayer buys Bitcoins and then exchanges them for another cryptocurrency, no income is generated. We only process it when the taxpayer exchanges cryptocurrencies for legal tender (i.e. traditional money) on an exchange, exchange or open market. Revenue is also generated when paying with virtual currencies for goods or services. income tax related to cryptocurrencies is 19%. The PIT-38 declaration can be filed electronically or on paper with the competent tax authority for the place of residence.

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Cryptocurrencies – what about tax deductible costs?

The costs of obtaining revenue from the sale of cryptocurrencies are the documented expenses that the taxpayer incurred for the acquisition of the virtual currency and the costs related to their sale, for example the payment of commercial agents. Some people acquire cryptocurrencies as a result of their so-called digging. It is important to note that in such a case, the purchase of dedicated electronic equipment or energy consumption costs cannot be considered as tax deductible costs. The fees for exchanging one virtual currency for another are also not a cost.

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Responsibilities despite lack of income

Cryptocurrency PIT-38 must be submitted even if the taxpayer received no income and only incurred expenses for the purchase of cryptocurrency. In subsequent years, such a person will be able to deduct these costs from tax if they sell virtual money. If in a given year the taxpayer sold and bought cryptocurrencies and the amount of the purchase exceeded the revenue from the sales, the difference is carried over to subsequent years – but it must be accounted for.


Is it worth getting into cryptocurrency?

What should taxpayers who have purchased cryptocurrencies in previous years, e.g. 2019-2020, do but have not submitted a proper return? I would recommend going back to those accounts and giving the proper testimony for them. Why is this important? If the taxpayer purchased cryptocurrencies in 2019 and cashed them in 2021, i.e. exchanged them for legal tender, the taxpayer must also include the previous acquisition costs in the tax return . This will allow it to lower the tax base.

In statements from previous years, one would have to show the costs of buying cryptocurrencies and present an active regret – that is, admitting the non-compliance with the tax obligation while fulfilling it. This will be the best way to avoid a penalty for not returning on time.

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