PIT is a personal income tax. It is part of a group of direct taxes in which the taxable person is a natural person who receives a certain income.
This tax applies to two categories:
- From Polish tax residents (deducted from all income)
- From foreign individuals without tax residency in the Republic of Poland (only taxed on income received in the territory of the Polish Republic).
This is essentially a tax return that taxpayers are required to submit periodically to the state authorities, indicating the amount of tax calculated and the total amounts used to calculate it.
There are groups of income that are not subject to taxation or that are exempt from paying the PIT. In the case of these groups, the taxpayer does not have to file an income tax return and show it to the tax authorities.
PIT – Personal Income Tax
What is the PIT rate in Poland?
The tax is divided into several groups, for which, the value of the percentage rate depends on the type/source of income. Currently, for progressive taxation, according to the tax scale, the rates apply: 17%, and after exceeding the base amount of 85,528 PLN (from 19,000 euros) – 32% tax.
There is also a solidarity tax, it is charged at 4% (from profits over 1 million zlotys – 222,230 euros).
Annual income of an individual is taken into account for calculation of taxable amount
Linear form of taxation – standard rate19% applies. Flat-rate taxation – 2%, 3%, 5.5%, 8.5%, 10%, 17%, 20%. In the case of taxation of profits from fixed assets and the sale of real estate – 19%. In the case of commercial real estate with an initial value of over 10 million PLN (22,222,300 euros) – 0.35% of the tax base.
In addition to the rates associated with the special rules of taxation, the taxpayer may be taxed at the sanctioned rate – 75%.
PIT for foreigners receiving income in Poland
A different tax rate applies to income received in the Republic of Poland by non-residents, if it results from a double taxation avoidance agreement. In addition, a so-called exit tax of 3% or 19% applies for taking property out of the country.
For help with Polish taxes for entrepreneurs, please ask for advice.
How many types of PIT are there?
There are different types of PIT in Poland and supplements to the declaration.
Also, each type of personal income tax has its own filing deadlines, and they change by a few days from year to year because of calendar holidays. These deadlines were this year for reference: PIT-37, 38, 39 – until April 31, 2021; PIT-36, 28 – until March 1, 2021.
Common types of PIT in the Polish tax system
The main types of PIT used in the Polish Republic are 37, 36, 39, 38, 28. Every taxpayer should know what these forms refer to. A brief description of the most common types is below.
PIT-36
This form is for people who run a business and receive, in addition to their income, income from minor children or foreign income. PIT-36 with the ending “L” indicates persons making a calculation on a flat tax basis, 19%.
PIT-37
Used to calculate the income of persons hired on the basis of employment contracts – umowa o jeo or umowa o zlecennia. It is also filled out by pensioners. It is the most frequently performed declaration in the tax authorities of the Republic of Poland.
PIT 37 for — umowa o dzieło, umowa zlecenie
PIT-38
For those receiving:
- profits from the sale of securities and their derivatives;
- financial gain from the exercise of rights arising from the sale of securities, shares in companies with a legal entity and from the purchase of shares in companies with a legal entity or contributions to cooperatives.
Cryptocurrency trading also applies to PIT-38
If you receive proceeds from the sale of a cryptocurrency, the profits are entered on this return.
PIT-39
Sale of real estate or acquisition of property rights. If 5 years have not passed from the date of purchase/build of the property to the date of sale/sale for reimbursement, such gain is subject to a 19% duty, due by April 30, 2022.
PIT-28
For people receiving as a lump sum payment on registered proceeds. Filed for business income settlements and for civil/full spool partners.
Cost of calculating PIT
The price at the accountant varies from 70 to 150 zł per person. For the last couple of years it is possible to do it yourself on the websites E-pity.pl, Podatki.gov.pl.
Video instruction on how to fill in the declaration:
If you have PESEL and an ePUAP profile, it is quick and easy to make a calculation on the official website Podatki.gov.pl, using your confirmed profile.
This is a big part of the not simple tax system in Poland, we hope our article has helped you understand this topic.
