What is and how to generate tax report?
The tax report is a calculation, which can be used to settle the trade of cryptocurrencies annual tax or accounting statement.
The calculation is informative and does not constitute a legal or tax opinion. The user must decide himself, which method is appropriate, because the user is the responsible person for calculating and settling taxes correctly.
To generate a tax report, go to the "History" tab and select the "Tax Report" button in the upper left corner. Then select the account from which we will collect the fee for the report in the amount of PLN 65 gross and the year for which the calculation should be prepared. Accept the terms and press "OK". The report will be sent via e-mail within 48 hours from the moment of order.
Due to the lack of unambiguous regulations on the method of settling income tax on trading in cryptocurrencies, we have prepared calculations according to three methods, in accordance with the currently available interpretations, described below.
General information and assumptions:
To calculate the value of cryptocurrencies in PLN for the moment, their exchange rate in BTC is determined first, and then the BTC exchange rate for PLN. The program operates on average hourly rates.
For all methods, if the currency is different than PLN, when determining the cost or income denominated in PLN, the exchange rate of the given currency is taken into PLN according to the NBP exchange rate table for the previous business day.
In the case of method 1), all undocumented sales of cryptocurrencies (which means when the moment and transactions of their purchase can not be indicated) are settled according to the cost-free principle. All revenue from the sale of cryptocurrency is counted as income.
- For methods 1) and 2), we calculate commissions on purchases, sales and exchanges of cryptocurrencies and subtract their total value, expressed in PLN, from revenues obtained from the aforementioned transaction.
The result of calculations according to the method chosen by the user should be entered in the PIT-36 declaration - Section D. Income / 7. Copyrights and other rights referred to in art. 18 laws / Fields 74 and 75.
Note: All links which will be contained in the e-mail are single-use.
Method 1 - Tax on FIAT-CRYPTO and CRYPTO-CRYPTO exchange (barter):
Option a - without additional exemptions:
The method assumes income tax on both - exchanges on fiat currencies as well as exchanges between cryptocurrencies. The crypto-crypto exchange income is the difference between the purchase value of the new currency and the obtaining cost of the exchanging one (purchase value).
Option b - including the exemption described in art. 21 par. 1 point 32b of the PIT Act:
The method assumes income tax on both - exchanges on fiat currencies as well as exchanges between cryptocurrencies. The crypto-crypto exchange income is the difference between the purchase value of the new currency and the obtaining cost of the exchanging one (purchase value). If the value of the transaction of exchanging cryptocurrency with another cryptocurrency made in 2017 does not exceed the amount of 2280 PLN, then the income is exempt from personal income tax according to Art. 21 par. 1 point 32b of the PIT Act.
Method 2 - Tax on FIAT-CRYPTO exchange:
The method assumes a tax only on the cryptocurrencies exchange with the fiat currencies, which means the cryptocurrencies purchase for the fiat currency and cryptocurrencies sale for the fiat currency.
In this method, all purchases of cryptocurrencies for fiat currencies are counted as total costs, while all sales of cryptocurrencies to fiat currencies are calculated as revenue.
Method 3 - Tax on deposits and withdrawals from the stock exchange:
The method assumes the calculation of the tax due considering deposits and withdrawals only. The difference between them determines income or loss.