Crypto Accounting in Poland: How to Simplify Recordkeeping and Comply with the Law

Cryptocurrency in Poland is considered an unaccounted asset or investment. According to the legislation, it is not regarded as currency, meaning that cryptocurrency transactions are subject to taxation. When exchanging cryptocurrency for fiat money or goods, a tax obligation arises. The income tax on cryptocurrency transactions is 19%.

For businesses dealing with cryptocurrency, it is important to maintain accurate records of cryptocurrency transactions - such as recording the number of coins, date and time of the transaction, and the token`s value during purchase or sale. This ensures the legality and transparency of operations. Let`s explore how to simplify cryptocurrency recordkeeping in Poland.

How to Simplify Cryptocurrency Accounting in Poland

Individuals are required to submit an annual tax declaration (PIT-38) by April 30 of the following year. In Poland, simplified accounting for cryptocurrency can be done using the Book of Income and Expenses (Księga Przychodów i Rozchodów), provided the annual income does not exceed 2,000,000 euros.

Let’s figure out how to simplify cryptocurrency accounting in Poland based on recommendations from LFTAdvisor experts.

1. Transaction Recordkeeping

Transaction recordkeeping is the foundation of cryptocurrency accounting. Without accurate transaction records, it is impossible to properly determine the tax base and avoid penalties. What should be recorded?
Mandatory:

• Date and time of the transaction.
• Type of transaction (buy, sell, exchange).
• Quantity of cryptocurrency in the transaction.
• Cryptocurrency value at the time of the transaction (in PLN).
• Transaction fees paid.

Example of transaction record:

• Date: 12.01.2025
• Transaction: purchase of BTC.
• Quantity: 0.05 BTC.
• Value: 50,000 PLN per 1 BTC (total value: 2,500 PLN).
• Exchange fee: 50 PLN.

Why is this necessary? Accurate transaction recording allows you to determine the profit or loss from transactions, file the annual tax return (PIT-38), and avoid mistakes in calculations or issues with tax authorities.

2. Software and Tools

Choosing the right tools for cryptocurrency accounting helps save time on data processing and minimizes errors. Modern software offers automation, exchange integration, and ready-made reports.

Why should you use software for cryptocurrency accounting?

• Programs automatically collect data from exchanges and wallets.
• Eliminates human error in calculations, preventing mistakes.
• Many services offer functions tailored to tax regulations in different countries, including Poland.

Common Software Used in Crypto Accounting:

• CoinTracking. Supports data import from exchanges (automatically via API or manually) and allows for profit, loss, and fee calculations. It also generates tax reports. Plus - supports many exchanges and currencies. Minus - paid features for large data volumes.
• Koinly. Automatically tracks transactions and generates tax reports for Poland (including PIT-38). Supports staking and DeFi accounting. Plus - intuitive interface, support for fiat currencies. Minus - limited free features.
• Cryptio. Suitable for both businesses and individual accounting. Allows profit and tax calculations based on exchange rates. Integrates with accounting platforms. Plus - flexible settings. Minus - complex interface.
• Excel and Google Sheets. Transaction data must be entered manually, but formulas for calculations can be created. Plus - free, convenient for small numbers of transactions. Minus - more time-consuming and requires attention to detail.

For a small number of transactions, Excel is suitable. For active traders, automated solutions are recommended. However, in any case, it is essential to ensure that the software generates reports that meet local tax authority requirements. The selected tools should also support the company’s exchanges and wallets.

Exchange Rate Valuation

Cryptocurrency exchange rate valuation is a crucial aspect of accounting, especially in Poland, where taxation is based on the value in Polish zlotys (PLN). This helps determine income, expenses, and the tax base.

When exchange rate valuation is needed:

• When buying or selling cryptocurrency.
• When exchanging one cryptocurrency for another.
• When earning income in cryptocurrency (e.g., via mining, staking, or freelancing).
• For calculating portfolio value for tax reporting.

To correctly evaluate the exchange rate, you need to determine the date and time of the transaction. If the operation was carried out through an exchange, use the rate provided at the moment the transaction was completed.

It is essential to choose the correct source for valuation. For exchange transactions, use exchange platforms. For over-the-counter transactions, platforms like CoinMarketCap, Binance, or CoinGecko can be used.

All of these measures significantly simplify crypto accounting in Poland. The use of automated software, accurate transaction recording, and proper exchange rate valuation help minimize mistakes, save time, and comply with tax regulations, making cryptocurrency accounting as convenient and effective as possible.