Investing in instruments such as stocks, ETFs, bonds, cryptocurrencies, and derivatives is becoming increasingly popular year by year. According to the National Depository for Securities, at the end of November 2024, the number of open brokerage accounts on the Polish market reached nearly 1.9 million, representing a year-on-year increase of 200,000. This number does not include cryptocurrency wallets or foreign brokerage accounts.
Due to the growing number of investors, the number of people required to file a capital gains tax return is also increasing. Income (and in some cases, expenses) must be declared in the annual PIT-38 tax return. This obligation exists even if you earned no income during the year and your tax liability is PLN 0.
In this and subsequent articles from the "Tax This and That" series, we want to explain how to settle your taxes on investments in financial instruments and cryptocurrencies. Today's article will present the general principles of capital gains tax settlements, and in subsequent articles, we will take a more detailed look at each asset class.
PIT-38
The PIT-38 tax return, or capital gains tax return, must be filed by April 30th following the end of the tax year. This means that investors must submit a declaration by April 30th, 2025, containing information on investments completed (and, in the case of cryptocurrencies, also initiated) in 2024. Declarations can be filed electronically (your e-PIT, e-Declarations) or on paper (in person or by mail). The deadline is met if the declaration is submitted (electronically or by mail) by April 30th, even if it is received by the tax office after that date. If your declaration indicates tax due, it must be deposited into your personal tax micro-account by the tax filing deadline. Payment is also available via your e-PIT service (bank transfer and BLIK).
PIT-8C
The PIT-8C form, which some investors receive from their brokerage house, will be helpful in completing their tax returns. Investors using foreign brokerage houses (those without a registered office or branch in Poland) will not receive it. This form includes data on income and tax-deductible costs from investments in securities and derivatives. It should be available to us by the end of February 2025.
If our brokerage firm is not obligated to issue us a PIT-8C form, or fails to do so despite being obligated to do so, this does not exempt us from filing our own PIT-38 return. Therefore, it's worth archiving transaction histories. Most brokerage firms also offer the option of downloading a history or report for tax purposes. These documents can be useful when filing your tax return.
Next week we will check how to settle your share investments, whether there is a difference between investing on foreign stock exchanges through Polish and foreign brokerage houses, and what about dividend tax.
If you would like to consult your tax settlements or entrust them to specialists, please contact our office.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of January 27, 2025
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