Polish tax authorities increase scrutiny of cryptocurrency and foreign accounts

tax administration cryptocurrency taxation tax law reform Common Reporting Standard tax audits

Polish tax authorities are increasing scrutiny of foreign bank accounts and cryptocurrency transactions. Using the Common Reporting Standard (CRS), the administration can automatically receive data regarding account balances, interest, dividends, and asset sales from other countries.

Taxpayers who fail to demonstrate a legal source for their funds may face a tax rate of up to 75 percent on undisclosed income. Legal experts note that authorities are particularly focused on settlements related to virtual currencies, with a specific emphasis on the 2021 tax year. In one documented case, authorities requested explanations for funds totaling 2.5 million PLN at the end of 2021 and 1.5 million PLN the following year.