Few people know that money transfers to Poland are also subject to taxation and such income needs to be declared. Of course, there are many nuances and conditions that we will explain in this article.
Non-taxable amounts (minimum):
- up to 10,434 PLN – if the person belongs to the first tax group;
- up to 7,878 PLN – if the person belongs to the second tax group;
- up to 5,308 PLN – if the person belongs to the third tax group.
The tax amount is determined based on the tax group:
- “Zero group” – includes spouse, adopted children, adoptive parents, stepchildren, siblings, stepfather, stepmother;
- I tax group: husband/wife, parents, grandparents, children, grandchildren, great-grandchildren, stepchildren, stepfather, stepmother, brothers, sisters, sons-in-law, daughters-in-law;
- II tax group: descendants of sisters/brothers, brothers/sisters of parents, spouses of stepchildren/brothers/sisters, brothers/sisters of spouses, spouses of other descendants;
- III tax group: all others.
BUT: Full tax exemption can be granted to the husband/wife, their descendants (children, grandchildren, great-grandchildren), parents, grandparents, stepchildren, siblings, stepfather, stepmother, if they submit the SD-Z2 form within 6 months after receiving the money. This means that even if they exceed the limit of 9,637 PLN, they will not pay tax, they just need to notify the local authorities about it.
Form SD-Z2 and SD-3
If the amount exceeds the limit, you need to fill out the SD-Z2 form. To take advantage of the tax exemption, it is necessary to notify the tax authority about receiving the money using the SD-Z2 form within 6 months from the date of the donation. However, if more than six months have passed, the SD-3 form must be filled out, and the court will decide the amount of tax to be charged.
You do not need to notify (submit SD-Z2) about receiving charitable assets if:
- The donation was notarized;
- The total value of donations received from one relative in the last 5 years does not exceed 9,637 PLN – the non-taxable amount.
