Only 1% of cryptocurrency investors in Poland declare their profits to the Polish Tax Office (urząd skarbowy). Those statistics will soon be a thing of the past. The President has signed an amendment to the law that gives the tax authorities a powerful tool for scrutinising digital asset transactions - including those made on foreign exchanges. What does this mean for cryptocurrency holders?
DAC8 and DAC9: The tax authorities will learn about everything automatically
The amendment to the act on the exchange of tax information, signed by the President, is a revolution that implements the EU directives DAC8 and DAC9 into Polish law. Their main aim is to close loopholes in the tax system and combat tax avoidance in the crypto-asset sector.
Until now, many investors have counted on the use of foreign exchanges or currency exchange offices protecting them from scrutiny. The new rules put an end to that. The Polish tax authorities will now automatically receive data from:
- cryptocurrency exchanges,
- digital exchange offices,
- crypto wallet operators.
What exactly will go into the National Revenue Administration (KAS) database?
The information exchange mechanism will operate on a recurring basis. Once a year, the tax authorities will receive a complete report on transactions together with clients' identification data. This will allow officials to easily compare your annual return (PIT-38) with the actual movements on your crypto accounts.
The scope of the data exchange covers not only European Union countries but also numerous cooperating jurisdictions. If you have not declared your cryptocurrency profits, the tax authorities will be able to demand the tax due, together with:
- Late payment interest.
- Severe fiscal penalties under the Fiscal Penal Code.
Pursuing gaps in tax reporting will become easier
The new rules make pursuing people who evade taxation an almost automated procedure for the tax administration. The tax authorities no longer need to wait for a specific suspicion - data will flow into the system "ex officio".
For investors, this is the last call to put their transaction history in order and make sure that all operations have been settled in line with the applicable 19% tax rate on capital gains.
How can we help you?
At Global Tax Partners we keep track of changes in tax regulations on an ongoing basis. We understand that the world of cryptocurrencies and the complex requirements of the DAC8/DAC9 directives can be a cause for concern. We offer professional support with:
- auditing your existing crypto tax filings,
- optimal and safe reporting of profits from digital assets,
- representation before the tax authorities in the event of an inspection.
Don't wait for a summons from the tax office. Contact our experts and safeguard your investments.
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