PIT Taxation Of Bitcoin Sales

Ruling description

In its judgment of December 16, 2015 (case file no. I SA/ Gd 1551/15) the Provincial Administrative Court in Gdańsk found that virtual currencies (bitcoins) are classifiable as property rights for the purpose of identifying sources of revenue subject to personal income tax (PIT) because they are transferable (tradeable) and have a determinable pecuniary value. The revenue from transfers of bitcoins against consideration must therefore be classified as revenue earned from property rights (Article 10(1)(7) in conjunction with Article 18 of the PIT Act), regardless of whether the bitcoins were "mined" or acquired from a third party. The Court concluded that in accordance with Article 22(1) of the PIT Act, the costs of earning revenue from bitcoin transfers against consideration must include all the actually incurred and properly documented costs of acquiring the bitcoins, such as the price paid to purchase them. The costs of earning revenue