People earning income in the Republic of Poland through any means are required to submit an annual financial report to the tax office (Urząd Skarbowy). This article will discuss PIT in Poland, which you need to understand. Generally, accountants do not handle it, so you must take care of submitting it yourself. Since 2021, you can submit the declaration online, even via your phone. There are different types of taxes for individuals, and below we will break down the differences between PIT 11, PIT 36, PIT 37, and PIT 38.
PIT in Poland and Submission Options
There are three ways to submit PIT 11 to the tax office:
- Print the form, fill it out by hand, and submit it to the tax office or send it by mail.
- Complete it on a computer or laptop using special software.
- Submit it via your phone.
Let’s consider a typical case. If you are an entrepreneur and work for your own company, paying yourself and board members a salary, every year, by the end of February, your accountant or HR (if available) generates PIT 11. In Poland, it is generated for a specific company and person, and includes the company’s name, PESEL number, name, surname, and address. The declaration contains information about the company’s activities, the reporting period, and personal data with earnings details. It shows the employee’s salary and the tax that was paid on it. You must gather reports from all your employers or businesses where you are involved and enter the data into the system via computer, phone, or manually before submitting.
Differences Between PIT 11 and PIT 37
It’s important to understand that besides salary or compensation as a board member, there may be other sources of income. This is where the distinction between PIT 11 and PIT 37 comes into play. There’s also PIT 36 if you run a business. Most people file PIT 37. The difference is that every company where you worked will give you a PIT 11, which you then enter into the PIT 37 system. PIT 37 sums up your income from all sources, and you submit it. Be sure to confirm that the system has received your report. If submitting online, you will receive a confirmation email.
PIT-11 Declaration
If you get confused while filing and enter the wrong information, you can call the authorities, and they will assist you. There is also the possibility of doing a correction — submitting an application for correction and changing the data. For example: A woman working in Poland has two minor children in Ukraine. She found out about the possibility of receiving benefits for children after sending the annual report. She corrects the data, adds the necessary information, and receives a refund. This is the most pleasant part of PIT.
PIT-37 Declaration
Currently, the income tax rate for individuals in Poland is:
- 17% for up to 85,000 PLN
- 32% for amounts exceeding 85,000 PLN (the higher rate applies to the portion exceeding 85,000 PLN).
How to Fill Out PIT 36/37 in Poland
Here’s how to file your PIT in Poland. You can find two websites on Google: E-pity (an older version, which we use; there’s an app for your phone).
On the e-pity website, you can fill out your PIT tax form.
First, register, choose individual tax, and enter your contact details: name, surname (if you’ve done this once, the system will save your information). Take the data from the 51st cell and enter it into PIT 37. After filling out the form, apply any applicable deductions. There’s a list of available deductions (for minor children, internet, etc.), so check if any apply to you. Be sure to enter a Polish bank account number (funds may not be transferred to a Ukrainian account). After the system calculates your income and the taxes paid by your employer or you for yourself, you might receive a pleasant bonus in the form of cashback.
Twój e-PIT — New System
This new system requires an ePUAP profile. If you have an electronic signature, you can register, and the system will already have your data (your employer has submitted your PIT 11). You will check the information for accuracy, add deductions, and click submit
.
New System for Submitting PIT-37 Online
You can download the PIT-11 and PIT-37 templates from the link.
Why Submit PIT
Entrepreneurs often ask whether they need to submit PIT. If you plan to apply for a mortgage or car lease, the bank will check your creditworthiness based on PIT 37 in Poland (the credit is issued to an individual). Therefore, it doesn’t matter how much money your company or Polish business earned. What matters is how much you can withdraw for yourself and use part of it to repay the bank loan. So, for a good credit history, a good PIT at the end of the year is necessary.
Some people have official and unofficial income in Poland but fail to submit reports. They can be fined for this. Workers who come to work here for 2-6 months also need to submit an annual financial report. This especially applies to tax residents (those who have lived in Poland for 180 days or more).
If you plan to bring your business to the Polish market, our team can help you develop a strategy and step-by-step plan.
