Cryptocurrency tax in 2024. A tax advisor explains how to secure investment profits

Cryptocurrencies have become a permanent part of Poles’ investment portfolios, becoming one of the most popular assets in recent years. However, their dynamic development means that investors have to face many challenges, and one of the most important is the correct settlement of taxes. 2024 does not bring revolutionary changes in regulations, but knowledge of the applicable rules is the key to correctly calculate and pay cryptocurrency tax and at the same time avoid costly mistakes.

While regulations may vary from country to country, one thing is certain: Proper documentation of transactions and knowledge of tax rules are the key to avoiding problems with the tax office. Who has to pay cryptocurrency tax? What are the deadlines and rates? Are there ways to optimize taxes in this area? Our practical guide will help you understand the most important rules and prepare for settlement in 2024 – step by step.

This is the first article in a series devoted to tax optimization of profits from cryptocurrencies, which we co-create with our content partner Leotus Limited. In the following guides you will learn, among others:

• Holding, foundations, international companies – which solution will be best for you?
• In which jurisdiction is it best to settle your taxes? Tax havens vs. other interesting options.
• How to avoid unnecessary risks and errors during optimization?
• What does the future of tax regulations look like and how to prepare for the upcoming changes?

If you want to protect your capital and receive a ready-made, individual tax optimization plan – fill out the form at the bottom of the page and the Leotus law firm will serve you on preferential terms.

Cryptocurrency tax and Polish law

Polish legal regulations regarding cryptocurrencies place them in the category of property rights, not means of payment or currencies. This status means that each sale, exchange or use of cryptocurrencies is subject to detailed tax rules.

A key element of Polish law is that the regulations apply to both private individuals and businesses.

Tax liability arises in several cases:

• Sale of cryptocurrencies for fiat currencies (e.g. PLN, USD, EUR).
• Purchasing goods and services using cryptocurrencies.
• Exchange of cryptocurrencies for other assets (e.g. real estate).
• In turn, crypto-to-crypto transactions (e.g. exchanging bitcoin for ethereum) remain tax neutral, but must be scrupulously documented. Failure to report such transactions in accounting may lead to difficulties in proving the source of income in future sales.

Sanctions for incorrect settlement

In Poland, the tax office is increasingly focusing on cryptocurrencies – data on transactions is collected, among others, thanks to cooperation with cryptocurrency exchanges. Unfairly settled cryptocurrency tax may result in fines and, in extreme cases, criminal proceedings.

Who and how much tax must be paid on cryptocurrency trading?

Cryptocurrency taxation in Poland applies to a wide range of market participants – from small individual investors to large corporations. Who settles the tax and how depends on the nature of the activity and the entity conducting the transaction.

Corporate tax vs. private investors

Private investorswho trade cryptocurrencies settle their profits using the form PIT-38which concerns capital income. Key principles for individuals include:

• Taxation only of realized income, i.e. the difference between revenues (e.g. from the sale of cryptocurrencies) and costs of obtaining them (e.g. purchase price, exchange commissions). In the case of private investors, the tax rate is 19% on profits.
• Transactions between cryptocurrencies (so-called crypto-crypto) are tax neutral – they do not generate tax liability, but should be documented in detail for future settlements.
• Possibility to take into account losses from previous years, which may reduce future tax liabilities. Reporting losses in your tax return – allows you to deduct them in subsequent years when you make profits.

Whereas for enterprises Cryptocurrencies are treated as assets that affect the company’s financial balance. Tax obligations depend on the form of business:

• Small companies with revenues up to EUR 2 million pay CIT of 9%.
• Larger businesses are subject to the standard rate 19% CIT.
• Business-related costs (e.g. computer hardware, software, electricity for cryptocurrency miners) may be included in tax-deductible costs, but not always in the full amount.

VAT and cryptocurrencies

While cryptocurrencies are generally exempt from VAT, there are situations where this tax applies. This happens, for example, in the case of providing services related to cryptocurrency trading. This is especially important for companies dealing in consulting, transaction processing or cryptocurrency exchange.

Minimum income threshold – does it exist?

There is no minimum income threshold for cryptocurrencies. This means that even a small profit must be reported on your tax return. Taxpayers who did not make a profit can settle their losses, and the excess losses can be carried forward to subsequent tax years. It is possible to carry forward the excess of losses for a maximum of five subsequent years, provided that no more than 50% of the loss was deducted in a given year.

How to pay cryptocurrency tax in 2024?

Settlement of taxes on cryptocurrencies seems to be a difficult challenge, especially when it comes to complicated regulations and hundreds of transactions on stock exchanges. In reality, however, with the right approach, this process can be simplified and mistakes can be effectively avoided.

How and where to file a tax return?

In Poland, income from cryptocurrencies is settled on the PIT-38 form, which includes capital gains. This applies to any individual investor who sold cryptocurrencies or exchanged them for fiat currencies in the previous calendar year, generating a profit.

What do you need to do?

• Collect data about your transactions:

• Profits and costs associated with purchasing cryptocurrencies, exchange commissions and other transaction-related fees.
• Document every case of exchanging cryptocurrencies for Polish zlotys or purchasing goods for cryptocurrencies.

• Complete the PIT-38 form (companies use CIT):

• In the revenue section, enter the total amount obtained from selling cryptocurrencies.
• Include the acquisition costs and commissions in the appropriate field, which will help you reduce your tax base.

• The most convenient way is to use the e-Tax Office system (Your e-PIT). The system makes it easier to fill out the form by automatically completing the data that the tax office already has.

Until when do you have to pay crypto tax?

The deadline you cannot miss to pay your cryptocurrency tax for the current year on time is April 30, 2025. By this date, you must not only submit your tax return, but also pay the amount resulting from the calculations. Failure to meet deadlines means penalties and interest, so it is worth acting in advance.

The PIT-38 form is your main document in settling cryptocurrency profits. Its correct completion is crucial to avoid problems with the tax office.

A few tricks to make your tax settlement easier

For investors who make dozens or hundreds of transactions a year, settling taxes manually can be a nightmare. Fortunately, there are several ways to make this process much easier.

Firstlyyou can use dedicated software. Tools such as CoinTracking, Koinly and CryptoTax are created with cryptocurrency investors in mind. They automatically download data from stock exchanges, analyze transactions and generate reports in accordance with Polish tax regulations. This is a huge time saver, especially if you are actively trading.

Secondlydocument transactions on an ongoing basis. Don’t wait until the end of the year – regularly recording your profits, costs and commission fees will help you avoid chaos at settlement time. You can use a simple spreadsheet or more advanced portfolio management applications.

Thirdlydon’t be afraid to use the help of specialists. An accountant knowledgeable in cryptocurrencies can be your greatest ally. It will not only help you settle your taxes, but will also advise you on how to legally optimize your taxes and avoid common mistakes.

At the endtrack currency rates and use automatic converters. If you often exchange cryptocurrencies for fiat, it is worth using tools that automatically convert transaction values ​​into PLN in accordance with current rates. This not only saves time, but also eliminates the risk of accounting errors.

Thanks to these simple rules and modern tools, settling cryptocurrency tax will become much less stressful, and you will be able to focus on what is most important – achieving further profits.

Tax optimization in the world of cryptocurrencies

In the dynamic world of cryptocurrencies, the key to effective financial management is the skillful use of available tools and tax optimization strategies. Regardless of whether you are an individual investor or run a company, the right approach to tax settlements can significantly affect your profits and financial security.

If you want to improve the process of settling crypto taxes, but you don’t know where to start, check out the services of our content partner and leader in tax consulting for cryptocurrency investors – Leotus. Fill in contact form at the end of the article and find out how you can optimize your settlements in accordance with applicable regulations. The safety and legality of your finances is a priority.

Tax evasion – is it legal?

Many investors wonder if there are ways to completely avoid taxes on cryptocurrency profits. The answer is clear – complete tax avoidance is illegal and carries serious legal consequences.

However, legal tax optimization, in accordance with applicable regulations, is absolutely possible. Leotus helps investors find legal ways to minimize their tax burden, such as taking into account losses, taking advantage of tax breaks or choosing more favorable tax jurisdictions.

Cryptocurrency tax settlement assistance: Leotus and global optimization

Settlement of taxes on cryptocurrencies can be complicated, especially for investors conducting hundreds of transactions a year or operating on different exchanges. Leotus not only supports its clients in preparing tax documentation in accordance with Polish law, but also offers support in more advanced strategies, such as:

• Change of tax jurisdiction. For investors who want to reduce their tax liabilities, Leotus helps them relocate to countries with more favorable regulations, such as Portugal, Malta or the United Arab Emirates. Leotus experts analyze the benefits and risks associated with such a step and support you in the legal process.

• Establishing companies and family foundations. Structures such as family foundations or foreign companies can significantly reduce capital gains taxes. Leotus cooperates with lawyers and advisors, helping clients set up appropriate legal structures and tailor them to their individual needs.

• Tax credits and expense deductions. Leotus advises on what expenses, such as stock exchange fees or commissions, can be classified as tax-deductible costs, and also helps prepare appropriate documentation that meets the requirements of tax offices.

Leotus supports cryptocurrency investors in building a long-term tax strategy by combining legal, accounting and technological knowledge. Thanks to this, investors can not only effectively settle their liabilities, but also use available optimization tools in accordance with applicable regulations.

The author of the text is attorney. Szymon Bialik, Compliance Officer at Leotus Limited.

Trust professionals who will help you maximize profits and at the same time minimize tax risk. Contact Leotus to learn more about your cryptocurrency tax optimization options. Just fill out the form below and a Leotus tax advisor will contact you and establish an individual plan to secure your assets on preferential terms.