Regulatory bodies across the globe started rolling out tax laws on crypto a few years back and while the framework was precarious at best in the beginning, it has now evolved. Most countries have clear guidelines around how different crypto related transactions are taxed. However, a common pattern can be observed across all tax legislations and that would be NFT and Defi taxation.
Owing to the inherent complexity of these transactions, tax authorities have either merged their taxation under a blanket tax regime or left them untouched. Poland, despite its concrete regulatory framework does not have clear guidelines on how such transactions are taxed and the responsibility of interpreting how these transactions would be taxed falls on the investor.
Our goal today is to understand the current stance of authorities on such transactions and extrapolate how these transactions would be taxed.
Updated Crypto Taxation in Poland 2025
In 2025, Poland’s crypto tax framework remains one of the more structured systems in the EU, with a flat 19% tax rate applied to most taxable crypto events. The Ministry of Finance continues to treat cryptocurrencies as property, meaning taxes are due when crypto is converted into fiat (PLN or EUR) or used to purchase goods and services. Importantly, crypto-to-crypto transactions remain untaxed — a relief for active traders. However, Poland still has no specific legislative framework for NFTs and DeFi, leaving these categories in a regulatory grey area.
A primer on Crypto Taxation in Poland
Crypto taxes are levied on the conversion of crypto into fiat or if you've spent your crypto in exchange of any goods or services. Accordingly, the method is straightforward, as explained below:
- each buy generates "tax deductible costs" which are aggregated on an annual basis.
- each sell generates "tax revenues" which are aggregated on an annual basis
At the year end, if tax deductible costs are in excess of tax revenues then loss will be reported and carried forward to the next year. If it’s otherwise, then you pay a 19% tax on excess tax revenues.
Mining rewards and staking tokens are taxed at the full amount when converted to fiat currency, irrespective of having a cost basis of 0 PLN. Furthermore, gifts, donations, and inheritance involving crypto assets may be subject to Polish gift and inheritance tax based on the fair market value at the time of the tax event, considering the relationship between the donor and recipient. Due to potential ambiguities in specific tax laws surrounding crypto transactions in Poland, seeking advice from a tax professional is advisable.
NFT Taxation in Poland
The Polish tax authorities are yet to release specific guidelines on NFT taxation. Any income from trading NFTs will likely be taxed as regular income. This essentially means that you will pay an income tax of 19% on any gains derived from trading NFTs.
Moreover, since crypto to crypto trades aren’t taxable in Poland, trading one NFT for another would not attract tax liabilities. You would pay taxes only if you converted your NFT to fiat. However, in most instances NFTs are sold for a platform native currency like ETH or SOL, and this implies that trading NFTs wouldn’t attract tax unless you converted the underlying assets to fiat.
Note that these are assumptions based on the current guidelines and it’s advisable to consult a professional tax consultant to gain more clarity on the subject.
Poland NFT Taxation: What We Know So Far
Polish tax authorities have yet to release a dedicated rulebook for NFT taxation. Based on current practice, any gains from selling NFTs for fiat will likely fall under the 19% income tax regime. Since most NFT trades happen in ETH, SOL, or other crypto tokens, the taxable event arises only when those tokens are later exchanged for fiat.
Key considerations for NFT holders in Poland:
- NFT-to-NFT trades remain non-taxable (crypto-to-crypto).
- Selling NFTs for crypto is not taxed until the crypto is exchanged for fiat.
- Direct NFT-to-fiat disposals trigger 19% tax on gains.
- Income from NFT royalties may be treated as business income and taxed accordingly.
Defi Taxation in Poland
The subject of Defi taxation is barely touched upon by tax authorities in Poland and is therefore one possible grey area in the Polish tax regime. Any income from staking or lending on Defi protocols would likely be treated the same way as income from ICOs, airdrops, or hard forks and taxed at a blanket rate of 19%.
But then again, consulting a tax professional would be best to gain clarity on taxation of such transactions.
DeFi transactions are still largely unregulated under Poland’s crypto tax 2025 rules, leaving investors to interpret them under existing income tax provisions. Earnings from staking, yield farming, lending, or liquidity pools will likely be categorized as income and taxed at 19% when converted to fiat. However, since DeFi transactions often involve reinvesting tokens or earning rewards directly in crypto, this creates reporting challenges.
How Kryptos Helps Polish Crypto Investors
Given the grey areas of NFT and DeFi taxation in Poland, using a tool like Kryptos crypto tax software can save time, reduce errors, and ensure compliance. Kryptos automatically imports wallet and exchange data, calculates gains, applies Poland’s 19% tax rate, and generates audit-ready reports.
Benefits of Kryptos in Poland:
- Tracks crypto-to-fiat conversions with accurate PLN values.
- Identifies loss carry-forward opportunities.
- Consolidates staking, mining, and DeFi income into tax reports.
- Provides consultant-backed compliance support for unclear cases like NFTs and wrapped tokens.
Conclusion:
Filing your crypto taxes can be intimidating especially when there are no clear guidelines on how certain transactions are taxed. Kryptos offers a smart solution to the problem by automatically generating tax reports for its users based on their transactions. We also have a team of tax consultants that help resolve any disputes and maintain the legality of tax reports to ensure compliance.
| Step | Form | Purpose | Action |
|---|---|---|---|
| 1 | 1099-DA | Reports digital asset sales or exchanges | Use to fill out Form 8949. |
| 2 | Form 1099-MISC | Reports miscellaneous crypto income | Use to fill out Schedule 1 or C. |
| 3 | Form 8949 | Details individual transactions | List each transaction here. |
| 4 | Schedule D | Summarizes capital gains/losses | Transfer totals from Form 8949. |
| 5 | Schedule 1 | Reports miscellaneous income | Include miscellaneous income (if not self-employment). |
| 6 | Schedule C | Reports self-employment income | Include self-employment income and expenses. |
| 7 | Form W-2 | Reports wages (if paid in Bitcoin) | Include wages in total income. |
| 8 | Form 1040 | Primary tax return | Summarize all income, deductions, and tax owed. |
| Date | Event/Requirement |
|---|---|
| January 1, 2025 | Brokers begin tracking and reporting digital asset transactions. |
| February 2026 | Brokers issue Form 1099-DA for the 2025 tax year to taxpayers. |
| April 15, 2026 | Deadline for taxpayers to file their 2025 tax returns with IRS data. |
| Timeline Event | Description |
|---|---|
| Before January 1, 2025 | Taxpayers must identify wallets and accounts containing digital assets and document unused basis. |
| January 1, 2025 | Snapshot date for confirming remaining digital assets in wallets and accounts. |
| March 2025 | Brokers begin issuing Form 1099-DA, reflecting a wallet-specific basis. |
| Before Filing 2025 Tax Returns | Taxpayers must finalize their Safe Harbor Allocation to ensure compliance and avoid penalties. |
| Feature | Use Case Scenario | Technical Details |
|---|---|---|
| Automated Monitoring of Transactions | Alice uses staking on Ethereum 2.0 and yield farming on Uniswap. Kryptos automates tracking of her staking rewards and LP tokens across platforms. | Integrates with Ethereum and Uniswap APIs for real-time tracking and monitoring of transactions. |
| Comprehensive Data Collection | Bob switches between liquidity pools and staking protocols. Kryptos aggregates all transactions, including historical data. | Pulls and consolidates data from multiple sources and supports historical data imports. |
| Advanced Tax Categorization | Carol earns from staking Polkadot and yield farming on Aave. Kryptos categorizes her rewards as ordinary income and investment income. | Uses jurisdiction-specific rules to categorize rewards and guarantee compliance with local tax regulations. |
| Dynamic FMV Calculation | Dave redeems LP tokens for Ethereum and stablecoins. Kryptos calculates the fair market value (FMV) at redemption and during sales. | Updates FMV based on market data and accurately calculates capital gains for transactions. |
| Handling Complex DeFi Transactions | Eve engages in multi-step DeFi transactions. Kryptos tracks value changes and tax implications throughout these processes. | Manages multi-step transactions, including swaps and staking, for comprehensive tax reporting. |
| Real-Time Alerts and Updates | Frank receives alerts on contemporary tax regulations affecting DeFi. Kryptos keeps him updated on relevant changes in tax laws. | Observe regulatory updates and provide real-time alerts about changes in tax regulations. |
| Seamless Tax Reporting Integration | Grace files taxes using TurboTax. Kryptos integrates with TurboTax to import staking and yield farming data easily. | Direct integration with tax software like TurboTax for smooth data import and multi-jurisdictional reporting. |
| Investor Type | Impact of Crypto Tax Updates 2025 |
|---|---|
| Retail Investors | Standardized crypto reporting regulations make tax filing easier, but increased IRS visibility raises the risk of audits. |
| Traders & HFT Users | To ensure crypto tax compliance, the IRS is increasing its scrutiny and requiring precise cost-basis calculations across several exchanges. |
| Defi & Staking Participants | The regulations for reporting crypto transactions for staking rewards, lending, and governance tokens are unclear, and there is a lack of standardization for decentralized platforms. |
| NFT Creators & Buyers | Confusion over crypto capital gains tax in 2025, including the taxation of NFT flips, royalties, and transactions across several blockchains. |
| Crypto Payments & Businesses | Merchants who take Bitcoin, USDC, and other digital assets must track crypto capital gains for each transaction, which increases crypto tax compliance requirements. |
| Event | Consequences | Penalties |
|---|---|---|
| Reporting Failure | The tax authorities can mark uncontrolled revenues and further investigate. | Penalty fines, interest on unpaid taxes and potential fraud fees if they are deliberately occurring. |
| Misreporting CGT | Misreporting CGT Error reporting profits or losses can trigger the IRS audit. | 20% fine on under -ported zodiac signs, as well as tax and interest. |
| Using decentralized exchanges (DEXs) or mixers without records | The IRS can track anonymous transactions and demand documentation. | Possible tax evasion fee and significant fine. |
| Disregarding Bitcoin mining tax liabilities | Mining reward is considered taxable income, and failure of the report can be regarded as tax fraud. | Further tax obligations, punishment and potential legal steps. |
| Foreign crypto holdings: Non-disclosure | Foreign-accepted crypto FATCA may be subject to reporting rules. | Heavy fines (up to $ 10,000 per fracture) or prosecution for intentional non-transport. |
