Bitcoin ATMs in warsaw vs. tax

According to Polish law, a person who sells (disposes of) a cryptocurrency should settle tax on the transactions made. If you trade Bitcoin on a daily basis, ATM withdrawal vs. tax is an issue that will certainly interest you. The most important thing to know is that the tax authorities treat the profit from the sale of BTC as income from property rights.

Bitcoin purchase and income tax

Under current Polish law, the mere acquisition and possession of cryptocurrencies is not taxable. Incidentally, this type of solution is already in place in some Western European countries. Nonetheless, in Poland, no tax has been introduced on the purchase and possession of BTC. So you can use Bitcoin ATMs in Warsaw to purchase and hold crypto without worry.

Withdrawal from Bitcoin ATM and tax

You are required to pay 19% income tax if you earned income from trading cryptocurrency. In other words, if you bought Bitcoin at a lower price, and later (even after several years) sold it more expensively using Bitcoin ATM - you must include the tax on this transaction in your annual return (on your PIT-38 return). The exchange of BTC into traditional currency (e.g. PLN, EUR), which gives financial benefits, is considered under Polish law as income from property rights.

Tax on BTC withdrawal - legal basis

The legal basis for charging tax on cryptocurrencies is the following

‍Personal Income Tax Act ofJuly 26, 1991.

‍Thisis Article 17, paragraph 1f. About income from cash capitals, the law reads there:

"Disposal of virtual currency for a consideration means exchanging virtual currency for legal tender, goods, services or property rights other than virtual currency, or settling other obligations with virtual currency."

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Accounting for crypto tax in connection with the current legal basis remains an unpleasant duty for all of us.

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Exchange of BTC for another currency vs. tax

What if you exchange one cryptocurrency for another? According to the law's provision, such an exchange does not give rise to tax liability.

Example: if you exchange BTC for ETH at a favorable rate, even if the transaction contributes to your enrichment, it is not taxed. You do not have to report it on your PIT-38 return.

On what value of BTC is the tax calculated?

Only income from cryptocurrencies is subject to 19% income tax. You consider income to be the difference between income and expenses incurred. If you make withdrawals using our Bitcoin ATM, the tax is 19% on the income you earn.

Example:

You bought 1 BTC at the rate of 22.02.2022 (148,803.84 PLN) and sold it at the rate of 1.03.2022 (191,088.99 PLN). You transferred the amount thus obtained to your savings account. The tax base is the difference between the sale price and the purchase price.

Assuming that you have not shown any deductible expenses, your income is PLN 42,285.15. This is the amount you need to show in your PIT-38 tax return, filed by 30.04.2023. The tax due will be 8034 PLN.

Bitcoin ATM - payment vs. tax return

Beginning in 2020, you must settle the income you receive from BTC withdrawals on a PIT-38 form. You must deliver the completed return to the tax office with jurisdiction over your place of residence. The deadline for settling taxes from BTC is April 30 of the calendar year following the tax year in which you earned income.

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Tax on BTC is something that interests investors especially when it comes time to withdraw profits from crypto into a currency like PLN or EUR.

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Taxes on BTC - deductible expenses

When accounting to the tax for BTC income, you can make tax deductions. That is, after you sell the cryptocurrency, you can deduct the income earned from this by the costs incurred, related to the acquisition and sale of tokens. These include fees for electricity and Internet access, and even the cost of purchasing the computer or smartphone on which you conducted the operation. Remember to keep the invoices documenting the costs you incurred.

Bitcoin withdrawal without tax

Wondering how to withdraw BTC tax-free? Polish tax residents are required to report income from the sale of Bitcoin in their tax return, so they cannot avoid paying taxes on income from cryptocurrency trading.

Do you use the facilities of the Shitcoins.club operator? If you are interested in withdrawal in Bitcoin ATM, tax is a matter between you and the relevant tax office. The bitcoin ATM company is not required to report such transactions to the tax. You fill out the PIT-38 return on your own, showing income and expenses that reduce income.

How to bypass the tax on Bitcoin?

Withdrawing bitcoin tax-free is possible if you have changed your tax residence. This is the method used by the richest investors when they don't want to pay 19% to the taxman on legally earned income. The most favorable conditions for cryptocurrency traders are currently offered by Cyprus, Malta and Portugal.

There are no regulations prohibiting BTC wallet holders from making a tax move to another country. Remember, however, that each country has separate regulations and requirements. You must meet them to become its tax resident. This does not always mean complete absence of tax, but often the tribute to the fiscal is lower than the amount of income tax in Poland.

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Learn tips on taxes and bitcoin to avoid future losses.

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Bitcoin ATMs a tax - frequently asked questions

What tax on bitcoin?

In Poland, income from the sale of Bitcoin is subject to 19% income tax. In order to calculate the taxable base, the income earned from BTC trading can be reduced by the cost of obtaining it.

How to account for bitcoin tax?

You can settle your Bitcoin tax by completing the annual tax return PIT-38. You have until April 30 of the calendar year following the tax year in which you earned income. You do not send any documents or advance payments to the tax office during the tax year.

How to withdraw BTC without tax?

If you want to withdraw BTC tax-free, you must be a tax resident of a country that allows such an operation. Changing your tax residency is legal and can pay off if you want to withdraw a larger amount of BTC tax-free.

Where is bitcoin not taxed?

A 0% tax on bitcoin is achievable in Portugal. Unlike the U.S. or Poland, which treat virtual currency as property, taxing it in a similar way to stocks or real estate, Portugal views cryptocurrencies as a form of payment.

Which countries have no tax on cryptocurrencies?

Cryptocurrency-free countries are as follows. They are Belarus, Cayman Islands, El Salvador, Germany, Malaysia, Malta and Portugal. These are the top 10 cryptocurrency-free countries.

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Cryptocurrency tax can be burdensome due to the need for so-called "paperwork."

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Which country has the lowest tax on cryptocurrencies?

Portugal is one of the best places in the world to live if you want to avoid paying taxes on cryptocurrencies. As of 2018, all income from the sale of cryptocurrencies is tax-free. What's more, cryptocurrency trading is also not considered investment income, so crypto trading is also tax-free.

Is it legal to buy Bitcoin in Poland?

Buying BTC in Poland is legal. There are no laws in the Polish system prohibiting the operation as a cryptocurrency exchange or bureau de change, which means that operating a cryptocurrency exchange in Poland, as well as trading in cryptocurrencies, is not prohibited.

What is the exact tax on bitcoin in Warsaw?‍

The position of the Polish tax authorities towards Bitcoin and other cryptocurrencies is as follows:‍

BTC tax for individual investors

Income from cryptocurrency trading is subject to the 18/32% PIT rate (the 32% rate applies when the annual income exceeds approximately €20,000), with income being understood as the price paid to the seller of the cryptocurrency sold minus the price paid by the seller for the purchase of that cryptocurrency.
Income should be accounted for on an annual basis.

For individual investors who are entrepreneurs

Sole proprietors should be aware that:

Income from cryptocurrency trading is subject to a 19% PIT rate regardless of income level,
Revenue is the price paid to the seller of the cryptocurrency sold minus the price paid by the seller to purchase that cryptocurrency plus other costs generated by entrepreneurs (e.g., office, laptop, phone),
Income is settled on a monthly/quarterly basis.

For corporate investors

For corporate investors, the regulations related to the Bitcoin tax are as follows:

Income from cryptocurrency trading is subject to a 19% CIT rate regardless of income level,
Revenue is the price paid to the seller of the cryptocurrency sold minus the price paid by the seller to purchase that cryptocurrency plus other costs generated by corporate investors (e.g., office, laptops, phones),
Income is settled on a monthly basis.

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If you are interested in changes in the cryptocurrency tax sphere, look more often at Bitcoin ATMs-warszawa.pl.

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Exchanges now offer products that allow tax-free trading

In February and March 2022, crypto platforms, especially exchanges, are introducing new products to buy with crypto, as investors look for ways to save on taxes related to withdrawals from exchanges. As you can see, exchanges and larger platforms are trying to respond to the needs of investors concerned about new regulations related to taxes and crypto.

As investors look for legitimate ways to save tax on their cryptocurrency investments, crypto platforms are introducing new products to help customers earn interest on their crypto deposits or take out loans without attracting new taxes.

A 30% tax on returns from digital currencies and a 1% withholding tax (TDS) on all crypto transactions have been proposed.