Details of settlement of PIT-38 for 2023

Revenue from PIT-8C information and other revenue

In column b of section C of PIT-38 tax return, you should show revenue:

• shown in section D of PIT-8C information for 2024;
• shown in section E of PIT-8C information for 2024, to which Article 19 of the Act of 12 November 2003 amending the Personal Income Tax Act and certain other acts (Journal of Laws No. 202, item 1956, as amended) does not apply);
• earned in the territory of the Republic of Poland, where the entity not being a taxpayer was not obliged to complete PIT-8C information;
• earned abroad (e.g. from the sale of shares or taking up shares in exchange for an in-kind contribution).

Remember that you are obliged to submit PIT-38 tax return, if in 2024:

1. You earned revenue from:
   1. sale of: securities, borrowed securities (short sales), derivative financial instruments, shares in the companies, including all rights and obligations in a company having no legal personality, being an income tax payer, or shares in a cooperative,
   2. taking up shares in the companies or contributions in cooperatives in exchange for an in-kind contribution,
   3. exercise of the rights arising from securities or derivative financial instruments,
   4. redemption, repurchase, buyout or other cancellation of participation in equity funds,
2. You earned revenue or incurred tax-deductible expenses from the sale of virtual currencies.
   
   

Revenue from the sale of securities (shares in companies or shares in a cooperative) is generated upon the transfer of the ownership of the securities (shares) to the buyer, therefore revenue is understood as the amounts due, even if these amounts have not been actually received. Revenue due from the exercise of rights arising from securities and revenue from the exercise of rights arising from derivative financial instruments is generated upon the exercise of these rights.

You may include the following as tax-deductible expenses:

• expenses for the purchase of a security disposed of against payment (the expense is the unit price multiplied by the number of securities) and
• expenses incurred by you in the fiscal year for, e.g. for having your account handled by the brokerage house (commissions paid upon the purchase and sale of securities, expenses related to maintaining or opening an account, transfers, depositing securities, etc.).
• expenses for the purchase or taking up the securities without the agency of a brokerage house, shares or all rights and obligations in a limited joint-stock partnership (e.g. notary fees), as well as paid interest and commissions on loans, for which the securities, shares or all rights and obligations in a limited joint-stock partnership (S.K.A.) were purchased.

If you sold shares in a limited company, shares in a cooperative or securities acquired by the taxpayer by way of inheritance, you may also include the expenses incurred by the testator in order to take up or purchase these shares and securities as tax-deductible expenses.

If you acquired shares in a company, shares in a cooperative or securities by way of donation, the purchase price for tax purposes is PLN 0. Remember however that income from their sale is tax exempt in the part equivalent to the amount of inheritance and donation tax paid.

Show all expenses related to the revenue listed in PIT-8C information and other expenses incurred with regard to the purchase of securities in your tax return. Determine the amount of the expenses based on documents confirming the expenses incurred.

Sale of virtual currencies – Article 30b(1a) of the Act

The sale of a virtual currency is understood as settling other liabilities with this virtual currency or exchanging this virtual currency for:

• a legal tender,
• good, service or property right other than the virtual currency.

You are required to show the revenue and expenses from the sale of a virtual currency in your tax return, if in 2024 you:

• earned revenue from the sale of a virtual currency,
• incurred tax-deductible expenses in the form of expenses for the purchase of the virtual currency – even if you received no revenue from the sale of the virtual currency in the fiscal year concerned.

Tax-deductible expenses associated with the sale of virtual currencies.

Pursuant to Article 22(14) of the PIT Act, tax-deductible expenses associated with the sale of a virtual currency include:

• documented expenses incurred by you directly for the purchase of the virtual currency, and
• costs related to the sale of the virtual currency by you, including documented expenses incurred for the benefit of entities being the intermediaries in the sale of these currencies.

Income earned abroad

IIf you earned revenue from capital gains abroad, this revenue may be also subject to taxation.

Income is understood as the difference between revenue you earned and tax-deductible expenses. If the tax-deductible expenses are higher than the revenue, you have suffered a loss that you should also show in your tax return.

You should convert the amounts in foreign currencies into PLN at the average exchange rate announced by the National Bank of Poland on the last business day preceding the day when the revenue was earned.

If you show income earned abroad and – in specific cases – also the tax paid on income earned abroad, Your e-PIT service will automatically attach appendix PIT/ZG to your tax return.

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Flat-rate tax on revenue (income), including revenue (income) earned abroad

Flat-rate income tax referred to in Articles 29, 30 and 30a of the PIT Act

As a rule, revenue referred to in Articles 29, 30 and 30a of the PIT Act is subject to flat-rate income tax, which is required to be withheld by the tax remitter.

If this tax was not withheld by tax remitter, you have to calculate it yourself. Calculate the amount of flat-rate tax on revenue (income) by multiplying the revenue (income) amount by the flat-rate tax appropriate for the revenue (income) earned and specified in the Act or a double taxation avoidance agreement.

Flat-rate tax calculated for revenue referred to in Article 30a(1)(1) - (5) of the Act.

Flat-rate tax calculated for revenue (income) referred to in Article 30a(1)(1) - (5) of the Act, earned abroad:

• • from interest on loans (except where lending is a part of one’s business activity);
  • from interest and discount on securities;
  • from interest on or other revenue from cash accumulated in your account or in other forms of saving, custody or investing, handled by an entity authorised under other provisions (with the exception of cash associated with the pursued business activity);
  • from dividends and other revenue from a share in profits of legal persons;
  • from income from participation in equity funds.

Tax paid abroad referred to in Article 30a(9) of the Act

If you earned the above-mentioned revenue (income) abroad, you have the right to deduct an amount equal to the tax you paid abroad from the calculated flat-rate tax on this revenue (income). This deduction may not, however, exceed the amount of tax calculated on this revenue (income) at a rate of 19%.

Losses carried forward

In your tax return for 2024, you may show a loss incurred in: 2019, 2020, 2021, 2022 or 2023.

You may deduct only losses on revenue taxable in 2019-2023:

on account of the sale of:

• securities,
• borrowed securities (short sale),
• derivative financial instruments and the exercise of rights arising therefrom,
• shares in companies or shares in a cooperative.

on account of taking up shares or contributions in cooperatives in exchange for an in-kind contribution in a form other than an enterprise or its organized part.

Note! You may settle a loss only as part the same source, on which it was incurred.

Pursuant to Article 9(3) of the PIT Act, you may – by the amount of loss on the source of revenue incurred in a fiscal year:

1. reduce the income earned from this source in the next five consecutive fiscal years, provided that the reduction amount in none of these years may exceed 50% of this loss amount, or
2. make a one-off reduction of income earned from this source in one of the next five consecutive fiscal years by an amount of up to PLN 5,000,000; you may settle the non-deducted amount in the remaining years of this five-year period, provided that the reduction amount in none of these years may exceed 50% of this loss amount.