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Cryptocurrency tax - we ask the expert. Marcelina Szwed-Ziemichód [Interview]
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Cryptocurrency tax - we ask the expert. Marcelina Szwed-Ziemichód [Interview]

created Michał Sielski11 March 2021

There is no point in counting on the fact that profits from trading cryptocurrencies on a foreign exchange will not interest the Tax Office, as well as the fact that, according to the definition of the treasury, you cannot lose on virtual currencies. How to settle the tax on cryptocurrencies? When do we need to do this and when not? We talked about this and more with a specialist in this field - Marcelina Szwed-Ziemichód, attorney and tax advisor, specializing in, inter alia, in the financial markets.


Cryptocurrency tax - unavoidable?

Forex Club: Let's start with the basics: by when do you need to file a tax return in which we will disclose your cryptocurrency income to officials?

Marcellina Szwed-Ziemichód: We have to submit the tax return for 2020 by the end of April this year. A year ago, this deadline was extended by one month due to the coronavirus pandemic and it may be similar this year, but we are currently sticking to the statutory deadline, which is the last day of April. We settle transactions on the cryptocurrency market on the PIT-38 form.

It is the same where we settle accounts profits incl. from the stock exchange or the Forex market?

Yes, the same. However, the settlement of transactions in cryptocurrencies is separated in it and is on the second page. There is a column named "Virtual currencies" and this is where we need to enter the cryptocurrency trading data. It is very important to note that we cannot compensate for profits from trading cryptocurrencies with losses, e.g. from less successful investments in shares of listed companies or from transactions on the Forex market. Regardless of other financial transactions, you still have to pay tax on the profit you make from trading cryptocurrencies.

This is getting complicated. Does it mean that if I invest on the Polish stock exchange, on Forex market with a broker registered in a tax haven and I trade cryptocurrencies on a foreign exchange, I have no chance of settling such a PIT myself?

It's no exaggeration if we don't have ten 8C pits from many foreign brokers then you can do it yourself. 

And if we have a loss, do we also have to fill in PIT?

Yes, if we have made a transaction, we must account for them regardless of their effect. The problem is that, according to Polish law, we cannot prove a loss from trading cryptocurrencies. It is called "Excess costs" and is left to be transferred to the following years. 

It might seem that this is a lot of unnecessary confusion, and due to the fact that the topic of cryptocurrencies is still a niche in Poland, tax officials themselves also have a problem?

We have already received calls to the Tax Office, after which we had to explain where the specific amount came from and show exactly how the transactions were carried out, because it was the first case of this type in a given facility. So a lot depends on the specific Tax Office and whether any taxpayer has already accounted for the income obtained from trading cryptocurrencies. In some offices, this is a niche topic, because there are simply no such taxpayers, and in others, officials have a really wide knowledge of cryptocurrencies.

Unfortunately, when browsing Polish internet forums regarding cryptocurrencies, one can get the impression that investors themselves are not always aware of this subject ...

It's true, that's why I try to carry this torch of education constantly, not only to increase the awareness that taxes will have to be paid, because if we do not do it, you will have to pay heavy fines, but precisely to spare investors the trouble . That is also why, together with doctor Grzegorz Sobiecki from the Warsaw School of Economics, we will soon conduct research on the cryptocurrency community in Poland. I am full of optimism in front of them, but there is also a bit of anxiety about what image of the average Pole investing in cryptocurrencies will emerge from them.


Marcellina Swede-LandichódMarcellina Szwed-Ziemichód

Tax advisor and attorney - msztx.pl. He represents clients in tax inspections and proceedings, as well as before administrative courts. He provides advisory services to individuals and companies. He advises on projects for entities from the IT, GameDev, cryptocurrency, media, energy and real estate sectors. Every day I deal with, among others legal and tax issues related to cryptocurrencies and ICO, ongoing tax consultancy, tax and customs and fiscal audits, tax optimization and training.

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About the Author
Michał Sielski
Professional journalist for over 20 years. He worked, among others, in Gazeta Wyborcza, recently associated with the largest regional portal - Trojmiasto.pl. He has been present on the financial market for 18 years, he started on the Warsaw Stock Exchange when the shares of PKN Orlen and TP SA were just being introduced to the market. Recently, his investment focus has been exclusively on the Forex market. Privately, he is a parachutist, a lover of Polish mountains and a Polish karate champion.