In order of events, tax laws on crypto were introduced by regulatory bodies years ago. Initially, these frameworks rarely coexisted and were very confusing, but today countries dictate a formalized set of guidelines about crypto transactions. The repeated themes from most tax regimes are NFT and DeFi taxation.
Given the complex nature of these transactions, authorities either have inexplicit tax treatments for the earnings or classify them under general tax rules. Poland has a concreter egulatory framework for cryptocurrencies, yet on NFTs and DeFi, the situation remains gray. Investors carry the responsibility of interpretation.
Today we delve into the current stance of Poland on the crypto tax, including NFTs and DeFi, and discuss how investors can efficiently navigate through tax compliance.
Updated Crypto Taxation in Poland 2025
Poland's crypto tax regime is one of the more well-organized systems in the EU. By 2025:
- Flat 19% tax will apply to most taxable crypto events.
- Since cryptocurrencies are treated as property for tax purposes, taxes become payable when crypto is converted to fiat (PLN or EUR) or is utilized for buying goods and services.
- Crypto-to-crypto transactions remain untaxed, a matter of relief for active traders.
- Since the legislative framework for NFT and DeFi transactions is missing, it is causing uncertainty for investors.
A Primer on Crypto Taxation in Poland
Crypto taxes in Poland are triggered primarily on conversion to fiat or spending crypto. The method is fairly simple:
- Tax allowable costs: Each purchase of crypto generates deductible costs, aggregated annually.
- Taxable income: Each sale generates taxable income, which is also aggregated annually.
Reconciliation, end of year:
- If tax allowable costs exceed incomes → declare a loss to carry forward.
- If incomes exceed costs → pay 19% tax on the excess.
Additional considerations:
- Mining and staking rewards are taxed at their full value on conversion to fiat, irrespective of the cost base.
- Gifts, donations, and inheritance of crypto assets are subject to gift/inheritance tax, based on fair market value and relationship between donor and donee.
- It is advised to get a professional opinion on account of several inconsistencies in the law.
- NFT Taxation in Poland
- The Polish tax authorities have not issued any guidelines concerning NFTs to date. The current practice seems to be this:
- Profits from the sale of NFTs for fiat are probably subject to income tax at 19%.
- NFT-to-NFT trade (crypto-to-crypto) is nota taxable event.
- Sale of NFTs for crypto (say, ETH or SOL)becomes liable for tax at the moment crypto is converted to fiat.
- NFT royalties could be charged as business income and taxed as such.
The bottom line: NFT holders ought to maintain careful transaction records and get professional advice for clarity.
DeFi Taxation in Poland
DeFi transactions remain mostly unregulated, thereby leaving investors to interpret these under the existing provisions of income tax.
Profits from staking, yield farming, lending, or liquidity pools are deemed income, so they should be taxed at 19%once converted into fiat.
Because most of the DeFi rewards are sent in crypto, reporting can be complex.
Tax professionals can help ensure compliance for such grey-area transactions.
How Kryptos serves Polish crypto investors
While NFT- and DeFi-related tax rules remain uncertain in Poland, one crypto tax software called Kryptos simplifies compliance:
- From wallets and exchanges, data are imported automatically
- Gains are calculated and a 19% tax is applied as per Polish law
- It generates audit-ready reports
- It captures crypto-to-fiat conversions with exact PLN values
- Finds opportunities to carry loss forward
- Consolidates income from mining, staking, and DeFi
- In ambiguous situations, such as with NFTs and wrapped tokens, consultant-backed guidance is provided
Conclusion
Cryptocurrency tax filing in Poland is already daunting, with ambiguities surrounding NFT and DeFi tax rules. Kryptos provides an intelligent automated solution that prints out accurate tax reports, ensuring compliance while also providing access to expert consultants in case of difficulty with transactions.
The Antivirus System Kryptos is the security blanket for investors willing to grow their portfolios with no fear of regulatory uncertainty.
| 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. |
