‘STOCK MARKET’ TAX
The tax on income derived from the sale of securities is 19%. The taxable income is the difference between the total proceeds from the sale of securities and the costs of obtaining that income.
COSTS, OR THE TAXPAYER’S ‘FRIENDS’
Generating income from the sale of shares, as mentioned above, also involves incurring certain costs. As with other categories of income, we are dealing here with tax-deductible costs. Importantly, the regulations specify a particular point in time for their recognition. This is because expenses incurred in acquiring securities cannot be taken into account on an ongoing basis, but only upon the disposal of these financial instruments.
However, not all expenses that may at first glance appear to be related to the generation of income from disposal. It is obvious that, apart from luck (sometimes exclusively), a stock market investor must make a mental effort based on a wealth of complex and intricate knowledge or analytical tools.
The list of costs usually includes the costs of purchasing shares, maintaining a brokerage account, and commissions charged on the purchase and sale of shares.
However, the tax authorities often question the inclusion of expenses such as training, courses, specialist literature, or the costs of accessing commercial analytical tools, membership of investor organisations, or consultancy fees.
Occasionally, unusual expenses may be classified as costs. This was the case, for example, when mobile internet services were included in this list of costs, insofar as they were used for the purposes of carrying out stock market transactions. However, in the case of unusual costs, it is advisable to apply for an individual tax ruling.
SETTLING ACCOUNTS WITH THE TAX AUTHORITIES
Generating income from stock market investments also involves filing a tax return. The taxpayer is obliged to submit a PIT-38 form and pay the calculated tax. The brokerage firm through which we make our investments, having all the information necessary for the settlement, issues a PIT-8C form. Pursuant to Article 39(3) of the PIT Act, natural persons conducting business activity, legal persons and their organisational units, as well as organisational units without legal personality, are obliged to send to the taxpayer and to the tax office through which the head of the tax office competent for the taxpayer’s place of residence performs his duties, personalised information on the amount of income referred to in Article 30b(2), drawn up in accordance with the prescribed format. The information is submitted to the competent tax office by the end of January of the year following the tax year, and to the taxpayer by the end of February.
The PIT-8C form specifies the amount of revenue, costs incurred and the amount of income. On the basis of this information, we can settle the income earned. Importantly, failure to receive this information does not exempt us from the obligation to file an annual tax return.
Frequently asked questions
What is the tax rate on stock market gains?
The tax on income obtained from the sale of securities is 19%. This is a tax on the difference between revenue and the costs of obtaining that revenue.
Which expenses can I include as tax-deductible costs?
Deductible costs mainly include expenses for acquiring shares, brokerage commissions, and fees for maintaining a brokerage account. These costs are taken into account only at the moment of disposing of financial instruments.
Are costs of investment courses and literature deductible?
Tax authorities often question the inclusion of training, courses, literature, and access to commercial analytical tools as deductible costs. In such atypical cases, it is advisable to obtain an individual tax ruling.
Do I have to settle with the tax office myself if the broker issues a PIT-8C?
Yes, you are obligated to file a PIT-38 tax return and pay the tax, even if you do not receive information from the brokerage house. The absence of a PIT-8C does not exempt you from the obligation to file an annual tax return.
A tax question or a dispute with the authorities?
That is where most conversations with a lawyer begin. A consultation is paid, PLN 600 net. You pay for a real opinion: whether you have a legal problem, what you can do about it and roughly what it costs. It ties you to nothing further, and you do not need to know the law, that part is on us.
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You tell us what is going on, in your own words.
- 2 What next
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- 3 We act
You give the go-ahead and the matter is ours.
The practice includes ongoing advice on administrative and tax law. He has extensive experience in handling judicial, administrative, tax and judicial-administrative proceedings concerning both individual clients and business entities, including that gained through many years of providing services to local government units and other units of the public finance sector.
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