Tax reporting is in full swing in Poland. Income tax returns are accepted from 15 February to 30 April 2020 (inclusive)
Payment of taxes is obligatory not only for Polish citizens, but also for all foreigners who have worked at least one day on the territory of Poland during the reporting year.
Failure to submit data to the Polish tax authorities in a timely manner is a criminal offence.
All official income derived from:
- labour activity in Poland. The location at the time of receipt of payment is not taken into account;
- a personal activity for which you received a monetary reward;
- economic activity;
- Receiving rent for letting property in Poland.
As a reminder, from 2019 it is not necessary to fill in the annual return yourself. The National Tax Administration (Krajowa Administracja Skarbowa) will do it for us based on the data received from employers (PIT-11). We only have to check the electronic document and edit the information if necessary.
In addition, a number of tax amendments were enacted last year, some of which are already in effect for 2019.
For example, as of 1 August, young people under the age of 26 were exempted from paying personal income tax (PIT). The amount of annual income must not exceed PLN 85528. If it exceeds PLN 85528, the tax is calculated only on the amount of the excess. This means that no income tax will be charged on income up to PLN 7127 gross per month.
The zero PIT applies to young people employed both on the basis of labour contracts (Umowa o pracę) and assignment contracts (Umowa zlecenie). The combination of different sources of income does not limit eligibility for the benefit. If the young person did not have time to apply to their employer between August and December 2019, the tax continued to apply. However, the funds will be refunded after the employee files an income tax return. Only tax residents of Poland can take advantage of the benefit.
Let's return to the income tax return and say a few words on the basis of which document it is filled in.
By the end of February 2020, every officially employed worker should have received a tax report (PIT-11). This document is prepared by the employer.
Don't be surprised if you suddenly get more than one PIT-11. This means you have worked with more than one employer during the year.
The PIT-11 will tell you your total income for the year, as well as the amount of tax paid by your employer and the amount of insurance benefits. But remember, your employer makes advance payments. And they often don't match the amount of required deductions. For this reason, many people have an overpayment of taxes or, on the contrary, a shortfall by the end of the year.
The final calculation is based on PIT-37.
This is an official form containing information from the PIT-11. The employee fills it out/approves it himself and sends it to the Polish Tax Service. In fact, it is the final link in calculating the amount of taxes.
PIT-37 must be filled in by absolutely everyone who has been employed in Poland under the contracts "umowa o pracę", "umowa zlecenia", umowa o dzieło, but is not a business entity.
There are three ways to file a PIT-37:
- personal pitch;
- sending it by registered mail;
- electronic submission via the internet.
The last method is the most convenient. Read more about it here
It should be recalled that by the end of April, you must also repay the shortfall in tax, if any. If, however, the advance payments were excessive enough to cover the entire income tax, the tax office is obliged to refund the difference within 45 days of filing the PIT-37.
If you violate tax laws or provide inaccurate information, you will face penalties.
