Trading crypto currencies (Bitcoin, Litecoin, Ethereum etc.) is governed by its specificity in tax aspects. Taxpayers who copy or earn from trading Go4rexcrypto currencies and also make settlements in virtual currency should follow specific rules and document transactions in a special way. As a result, the grouping of revenues into tax sources will be different and the principles of cost settlement will be different.
Both revenues and costs are not combined and not accounted for together with other amounts within the entire group of cash capital. So:
- Income from crypto currencies can only be added to other income from crypto currencies (cannot be combined with income from the sale of shares, interests, financial rights),
- The cost incurred for the purchase of crypto currencies can only be added together with the other costs from crypto currencies (we do not sum it up with the costs of acquiring shares, etc. in the group of cash capital)
- The difference in income and cost (income being the basis for taxation) can be accounted only for crypto currencies (a separate column on PIT-38, which in the summary of the tax base is not combined with other income shown on PIT-38.
The surplus of costs over the value of income in annual terms is not combined with the same surplus in other monetary capital; in the case of these other capitals, the surplus is a tax loss and can be accounted for in a special way over the next years, while in the case of crypto currencies, the excess cost is carried forward to the next tax year.
The amount of PIT tax from the sale of crypto currencies
The crypto currency tax is 19% of the base, i.e. 19% of the income after deducting the costs of obtaining it. The amount of the tax base cannot be reduced by the value of reliefs and tax deductions; the pure value of income is taxed. You do not have to pay tax on crypto currency during the year, in particular directly in connection with sales.
Tax “loss” in crypto currencies
The surplus of tax deductible costs over revenues from the paid sale of virtual currency obtained in a tax year increases the tax deductible costs on the paid disposal of virtual currency incurred in the following tax year.
Considering that the surplus can be settled only in one year and it does not have to be the year immediately following the year of its recognition, it should be recognized that the taxpayer can freely decide when the income will be large enough to cover it with the entire value (or the highest value) of the surplus shown costs from earlier years