Tax changes in 2024, but not for all traders

Do you invest in open-end investment funds and specialized open-end investment funds? This important change will apply to you from this tax year. Funds will no longer be withheld tax when withdrawing or redeeming units. You will have to remember this yourself and settle it at the end of the year.

Important changes entered into force on January 1, 2024. The regulations change the method of taxation of income from investments in capital funds, i.e. open-end investment funds and specialized open-end investment funds. What will change?

Already, when redeeming units of such investment funds, the entities managing them pay gross amounts to participants without deducting capital tax of 19%. This does not mean, however, that the infamous "Belka tax" has been abolished in this case. For now, each successive government remains deaf to the investor community's requests. The fact that the gross amount was paid only means that the investors will have to pay the tax to the tax office themselves.

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When to pay capital gains tax?

Fortunately, tax does not have to be paid immediately after redeeming the units. This is done at the beginning of the year following the transaction.

– Data on tax revenues and costs (and the resulting difference in income or loss) obtained by Participants in 2024 will be presented in the PIT-8C information, which individual Investment Funds will submit to the tax office and the Client by the end of February 2025. The client will be obliged to settle the tax on income from investments in Investment Funds himself in his annual return, on the PIT-38 form. Therefore, customers will settle the income or loss achieved in 2024 in the annual tax return submitted by April 30, 2025 – specifies the letter from the Brokerage House of Bank Ochrony Środowiska.

What if I invest in different funds?

But how? calculate tax, if in a given year someone sold participation units of more than one Investment Fund managed by one or different TFI? Such an investor will receive a separate PIT-8C directly from each of the investment funds whose participation units he purchased in 2024.

READ: Do you trade with a foreign broker and do not settle taxes? This is a mistake!

Why were changes made?

This is intended to be a positive solution for investors. Primarily because they will be able to settle income or loss on investments in Investment Funds along with other investments made on the capital market - stock exchanges, cryptocurrencies, Forex, etc.

An exemplary, statistical Polish investor who - as annual statistics show - most often loses on Forex market, so he will not have to wait for another good year in which he will be able to deduct the loss from profits. He will be able, or rather must, settle all completed transactions in a given calendar year in each financial instrument.

For peace of mind, however, it will be better to use the services of a licensed tax office or advisor. It is not known how accurate the information sent by brokers or brokerage offices will be. For now, we do not know whether there will be a standardized settlement of all transactions, account maintenance costs, dividend income, etc. If different offices present it on different forms (and they do so for now), a person with no experience will be able to easily make mistakes, and this a simple way to call the Tax Office, write letters, submit explanations and simply waste time that would certainly be wasted on such adventures.