Determining tax residency, i.e. the place of residence for tax purposes, makes it possible to establish:

• the country where you are required to pay taxes,
• the international double taxation agreement that applies to you.

You may acquire the status of a tax resident in Poland if you are a natural person and you:

1. have your centre of personal or economic interests (centre of vital interests) in Poland, or
2. spend more than 183 days in a fiscal year in Poland.

These rules apply taking into account double taxation agreements.

If you are considered a tax resident in two countries, you are subject to the conflict-of-laws rules set out in the relevant double taxation agreement.

The status of a tax resident in Poland means that you should declare all income for tax purposes in Poland, regardless of the country in which that income has been earned. You are then subject to unlimited tax liability.

If you do not have the status of a tax resident in Poland, you are a non-resident. As a non-resident, you declare only income generated from the sources situated in Poland. You are then subject to limited tax liability.

If you receive an old-age pension or a disability pension from Poland but reside in another country, the bilateral double taxation agreement concluded between Poland and this country will determine where you are required to pay taxes. This will allow you to avoid double taxation (in two different countries).

If you receive an old-age pension or a disability pension from Poland but reside in another EU country, your income may be taxed:

• only in Poland,
• only in the country where you reside,
• both in Poland and in the country where you reside.

Please note: In order to find out where you should pay the tax on income from your old-age pension or disability pension, read the double taxation agreement concluded between Poland and the country where you reside.

This will allow you to avoid double taxation (in two different countries).

If your old-age pension or disability pension is subject to taxation in Poland, the pension you receive will be reduced by the income tax withheld.

If you receive a Polish old-age pension or disability pension subject to taxation in Poland, then, as a taxpayer, the Social Insurance Institution (Zakład Ubezpieczeń Społecznych, ZUS) withholds income tax and pays the amounts withheld to the revenue office every month. After the end of the fiscal year, the taxpayer submits the PIT-11A information or the PIT-40A annual tax calculation to the revenue office. The ZUS is required to send the same document to you as well.

In certain situations, an old-age pension or a disability pension subject to taxation in Poland may be exempt from tax.

The following pensions are tax-free in Poland:

• old-age pensions or disability pensions received due to loss of eyesight as a result of military operations during the 1939-1945 war or explosions of unexploded ordnance left over from this war (you need relevant documentation to benefit from this exemption);
• disability pensions awarded under separate provisions on support for war and military invalids and their families;
• disability pensions paid to victims of repression and members of their families, awarded on the terms set out in the provisions on support for war and military invalids and their families.

If your old-age pension or disability pension is tax-free, the ZUS will not withhold income tax. In this situation, it also will not send you any information on the amounts withheld.

If your old-age pension or disability pension is subject to taxation in Poland, the tax due is calculated according to a tax scale. This means that the amount of tax depends on the amount of your benefit.

Please note: Your old-age pension or disability pension may not be taxed according to the tax scale, but at a rate set out in the double taxation agreement concluded between Poland and your country of residence.

Important: when calculating the amount of tax, take into account all the tax relief and deductions to which you are entitled under the legislation in force in Poland.

Please note: If your income from employment, less the social insurance contributions (which are tax deductible in Poland) paid, exceeds PLN 1 000 000, you will be required to pay a solidarity levy. The levy amounts to 4% of the excess over PLN 1 000 000.

A tax return for income earned or losses sustained during the fiscal year is submitted to the revenue office having jurisdiction over the registered office of the taxpayer (the ZUS branch that pays the benefit).

If your old-age pension or disability pension is subject to taxation in Poland, the ZUS will send you:

• PIT-11A information, or
• PIT-40A annual tax calculation.

On the basis of these documents, you will prepare the PIT-37 tax return, which you will submit to the revenue office.

You are not required to submit a tax return if you have received the PIT-40A annual tax calculation from the ZUS and:

• you have not earned other income subject to taxation according to the tax scale in Poland,
• you are not entitled to tax relief in Poland.

If you are not required to submit a tax return, but you would like to donate 1% of your tax to a public benefit organisation of your choice, you should submit the PIT-OP declaration. You should do this by 30 April of the year following the fiscal year. The declaration is submitted to the revenue office having jurisdiction over the registered office of the taxpayer (the ZUS branch that pays the benefit).

The tax return for income earned or losses sustained should be submitted between 15 February and 30 April of the year following the fiscal year.

Please note: Tax returns submitted before the deadline are deemed to have been submitted on 15 February.

If 30 April falls on a Saturday or a holiday, the first working day following the holiday(s) is considered the last day for submitting tax returns.

Important: If you have made an error in the tax return, you may submit a corrected one.

You may submit tax returns in the following forms:

• paper,
• electronic.

Tax returns in electronic form may be submitted using:

• an interactive PDF file,
• e-Deklaracje Desktop application,
• Twój e-PIT service.

You should sign tax returns submitted in paper form by hand.

You should sign tax returns submitted in electronic form using:

• a qualified electronic signature,
• ‘authorising data’, i.e. an electronic signature that guarantees the authenticity of tax returns and applications.

If you do not wish to submit a tax return in person, your attorney may do it for you.

Please note: Tax returns submitted by an attorney cannot be signed using the ‘authorising data’.

Important: an Official Confirmation of Receipt is used to confirm that a tax return in electronic form has been received. Please remember to check if you have received one.

If you are required to pay a solidarity levy, submit the DSF-1 declaration to the competent office. You should do this by 30 April.

DSF-1 declarations may be submitted in paper or electronic form.

You should sign declarations submitted in paper form by hand.

You should sign declarations submitted online using:

• a qualified electronic signature,
• ‘authorising data’, i.e. an electronic signature that guarantees the authenticity of tax returns and applications.

If you do not wish to submit declarations in person, your attorney may do it for you.

Please note: Declarations submitted by an attorney cannot be signed using the ‘authorising data’.

If you have made an error in your declaration, you may submit a corrected one.

Important: an Official Confirmation of Receipt is used to confirm that a tax return in electronic form has been received. Please remember to check if you have received one.

The taxpayer should not withhold income tax from you if:

• you have presented a certificate of residency in the country of residence, and
• the double taxation agreement provides that the old-age pension (disability pension) received should not be taxed in Poland.

However, the taxpayer may withhold income tax from you due to a mistake or due to uncertainty as to your place of residence. In such a situation, you may submit an application for confirmation of overpayment to the revenue office, i.e. apply for a refund of unduly withheld tax.

In the application, you should indicate the tax that was unduly withheld and the amount that was withheld.

Please note: If you are a non-resident and receive an old-age pension (disability pension) through a taxpayer, the application is submitted to the revenue office having jurisdiction over the registered office of the taxpayer (the ZUS branch that pays the benefit).

The revenue office is required to take a decision on this matter within 1 month, and within 2 months in a particularly complicated case.

If your tax return shows a tax overpayment, the revenue office is required to refund it.

The tax will be refunded within:

• 45 days (for tax returns submitted in electronic form),
• 3 months (for tax returns submitted in paper form),

- from the date of submission of the tax return

Please note: If you submit the tax return before the deadline, the deadline for refunding the overpayment will be calculated from 15 February.

If, after submitting a tax return, you realise that you have made an error in the calculation or you have not deducted relief that you are entitled to, e.g. child relief, you may submit a corrected tax return. In such a case, the tax will be refunded on the basis of the corrected tax return.

You should enclose an application for confirmation of overpayment with the corrected tax return. The overpayment resulting from the corrected tax return will be refunded within 2 months from the date of submission of the application for confirmation of overpayment but no earlier than:

• 45 days (for tax returns submitted in electronic form),
• 3 months (for tax returns submitted in paper form),

- from the date of submission of the original tax return.

Please note: If you are a non-resident and receive an old-age pension (disability pension) through a taxpayer, the application is submitted to the revenue office having jurisdiction over the registered office of the taxpayer (the ZUS branch that pays the benefit).

Tax overpayments may be refunded:

• by transfer to a bank account,
• by postal order,
• at the cashier’s office of the revenue office.

Overpayments refunded by postal order are reduced by the costs of refunding the tax.

You may claim an overpayment at the cashier’s office only upon your request.

Please note: If your overpayment does not exceed PLN 23.20, you may claim it only at the cashier’s office.

The overpayment may not be refunded if the revenue office finds that you have arrears to it. In such a case, your overpayment will be offset against these arrears in full or to the extent needed to settle the arrears.

If you do not submit a tax return or you declare incorrect amounts in a tax return, the amount of your tax may be determined by the revenue office.

Please note: You have the right to appeal against this decision. You should lodge the appeal within 14 days from the date on which a higher authority receives the decision from the authority that issued that decision.