Foreign broker taxes are one of the most common concerns among investors using international platforms. The fact that you do not receive a Polish PIT-8C form does not mean there are no tax obligations. In many cases, investors must independently calculate their revenue, costs and taxable result, and report it in the PIT-38 tax return.
Foreign broker taxes when you do not receive PIT-8C
More and more Polish investors use foreign brokers and investment apps that provide access to shares, ETFs, bonds and other financial instruments. Tax questions often arise only when it is time to prepare the annual tax return.
When investing through a Polish brokerage house, investors usually receive a PIT-8C form, which simplifies the tax filing process. Foreign brokers, however, generally do not provide documents prepared in line with Polish tax regulations. Instead, they typically offer transaction reports, annual statements or account activity records.
This does not remove the obligation to report investment income in Poland. If you are a Polish tax resident and have earned income from capital investments, you should determine whether it needs to be included in your PIT-38 return.
This may apply to:
- the sale of shares,
- the sale of ETFs,
- the redemption of fund units,
- transactions involving derivative instruments,
- other transactions generating capital gains or capital losses.
The key principle is straightforward: a foreign broker does not file Polish taxes on behalf of an investor. Responsibility for reporting investment income correctly remains with the taxpayer.
What should be checked before filing PIT-38?
Many investors assume that the figures shown in their brokerage app can simply be copied into the tax return. In reality, the broker’s report is only a starting point for preparing a Polish tax filing.
Before submitting PIT-38, it is worth checking:
- which assets were sold during the tax year,
- when the instruments were purchased and sold,
- the amount of revenue generated,
- which costs can be recognised for tax purposes,
- whether amounts need to be converted into Polish zloty,
- whether a gain or loss was realised,
- whether any foreign tax was withheld,
- whether additional foreign-source income must be reported.
Particular attention should be paid if you completed numerous transactions, invested in multiple currencies or used several investment platforms. In such situations, the figures presented by the broker may not match the amounts that should ultimately be reported in the Polish tax return.
It is also important to remember that a tax obligation often arises when financial instruments are sold. Whether the proceeds were transferred to a Polish bank account or remained in the brokerage account is generally irrelevant.
The most common mistakes when dealing with foreign broker taxes
Investors who prepare their own tax settlements for foreign investments often make similar errors. The most common issues include:
- failing to file PIT-38 despite selling investments,
- calculating tax based only on the account balance,
- overlooking acquisition costs,
- incorrectly allocating costs to sold assets,
- using incorrect currency conversions,
- failing to recognise a tax loss,
- confusing dividend income with gains from the sale of securities,
- treating the broker’s report as a complete Polish tax calculation,
- lacking documentation showing how the tax result was determined.
If the tax authorities review the return, they may ask for an explanation of how revenue, costs and taxable income were calculated. For this reason, it is advisable to keep broker reports, transaction histories, trade confirmations and records related to currency conversions.
Foreign broker taxes – how can we help?
At Outsourced.pl, we support investors in analysing tax matters related to investments held through foreign brokerage accounts and international investment platforms. We help organise transaction data, identify potential risks and determine what information should be included in a Polish tax return.
This support may be particularly valuable for investors who:
- used multiple brokers during the year,
- completed a large number of transactions,
- invested in different currencies,
- are unsure how to interpret broker reports,
- want to minimise the risk of errors in PIT-38.
If you have questions about foreign broker taxes, it is worth addressing them well before the filing deadline. You always can contact us! The earlier the data is collected and reviewed, the easier it is to prepare an accurate tax return and avoid unnecessary complications later.
