Details of settlement of PIT-36 for 2022

No place of residence in Poland

Taxable persons who are resident for tax purposes outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation (which is documented with a certificate of residence), may show in the tax return revenue earned in Poland, that was subject during the year to lump-sum income tax in accordance with Article 29(1) of the Act, and then calculate tax on it according to the tax scale. In this case, the lump-sum income tax collected on this revenue is treated the same as the income tax advance deducted by the tax payer. If you want to use this solution, indicate this in the tax return.

This rule is applied if, based on ratified international agreements to which Poland is a party, the tax office can obtain tax information from the tax authority of the country where the natural person resides for tax purposes.

Income taxation

Joint taxation of spouses’ income

The application for joint taxation of income, referred to in Article 6(2) of the Act, may be filed by spouses who in a given year:

• reside in Poland for more than 183 days or have a center of their personal and economic interests in Poland (see Article 3(1) of the PIT Act),
• are married – with a tenancy by the entirety – for the entire fiscal year or from the date of their marriage until the last day of the fiscal year (if the marriage was concluded during the fiscal year).

Joint taxation of income is not available for spouses covered by the provisions on:

1. non-agricultural business activity or special branches of agricultural production subject to flat-rate tax, or
2. non-agricultural business activity subject to lump-sum income tax (Lump-Sum Tax Act)
   with respect to revenue earned, tax-deductible expenses incurred, the obligation or the right to increase or decrease the tax base or revenue, the obligation or the right to make other additions or deductions (applies to points (a) and (b)) in the fiscal year,
3. non-agricultural business activity subject to a fixed amount tax
4. taxation under the Tonnage Tax Act or the Act on the activation of the shipbuilding industry and complementary industries.

Income does not include revenue that is subject to lump-sum income tax (e.g. winnings in number games, dividends, interest on bank deposits).

Spouses who meet the conditions for joint taxation may be taxed jointly on the sum of their income earned in the year concerned.

To this end, they have to submit a joint tax return, in which each of them makes available deductions, e.g. social insurance premiums, donations, the rehabilitation relief or thermal modernization relief.

Tax on the spouses’ income is twice the amount of tax calculated on half of the total income of the spouses.

A joint tax return may be submitted also if one of the spouses did not earn in the fiscal year revenue taxed according to the tax scale.

An application for joint taxation of income may be signed by one of the spouses – it is treated as an authorization for joint taxation of their income.

Taxation method provided for widows and widowers

An application for joint taxation of the income of spouses with a tenancy by the entirety in the fiscal year may also be submitted by a taxable person who was married and their spouse died:

• during the fiscal year, or
• after the end of that year but before the tax return for that year was filed.

However, joint taxation is not possible where income is covered by the provisions on:

1. non-agricultural business activity or special branches of agricultural production subject to flat-rate tax, or
2. non-agricultural business activity subject to lump-sum income tax (Lump-Sum Income Tax Act)
   with respect to revenue earned, tax deductible expenses incurred, the obligation or the right to increase or decrease the tax base or revenue, the obligation or the right to make other additions or deductions (applies to points (a) and (b)) in the fiscal year,
3. non-agricultural business activity subject to a fixed amount tax
4. taxation under the Tonnage Tax Act or the Act on the activation of the shipbuilding industry and complementary industries.

Income does not include revenue that is subject to lump-sum income tax (e.g. winnings in number games, dividends, interest on bank deposits).

A person who meets the relevant conditions may have their income taxed jointly with the income of their deceased spouse.

To this end, this person has to submit a tax return in which they will make deduction available for each of the spouses, e.g. of social insurance premiums, donations, rehabilitation relief or thermal modernization relief.

The tax is twice the amount of tax calculated on half of the total income of the spouses.

Such settlement is possible also if one of the spouses did not earn in the fiscal year revenue taxed according to the tax scale.

Taxation of income of single parents

An application for determining the tax amount in the manner provided for single parents may be submitted by a parent or legal guardian with an unlimited tax obligation, who is:

• a maid or bachelor,
• a widow or widower,
• a divorced person or a person with a judgment of separation from a court ruled under other regulations,
• a married person, if their spouse has been deprived of parental rights or is imprisoned.

Such person may make a deduction if all the following conditions set out in the Act were met in the fiscal year:

1. the person was bringing up on their own children:
   
   1. who were minor,
   2. of any age, who, in accordance with other regulations, received an attendance allowance (benefit) or a social pension,
   3. under 25 years of age who during the fiscal year for which the tax return is submitted, studied at primary, secondary or higher schools, in Poland and abroad – if in the fiscal year they did not earn income taxable on general terms (according to the tax scale), capital gains (subject to a 19% tax rate on income) or earned tax-exempt revenue as part of “youth relief” or return relief in the total amount exceeding PLN 16,061.28.                                                                                                                                  The sum of this income does not include the income from a survivors’ pension and exempt revenue, e.g. financial maintenance, grants.
2. the income of the taxable person and of the child was not covered in the fiscal year by the provisions on:
   
   1. non-agricultural business activity or special branches of agricultural production subject to flat-rate tax, or
   2. non-agricultural business activity subject to lump-sum income tax (Lump-Sum Tax Act), with respect to revenue earned, tax deductible expenses incurred, the obligation or the right to increase or decrease the tax base or revenue, the obligation or the right to make other additions or deductions (applies to points (a) and (b)) in the fiscal year,
   3. non-agricultural business activity subject to a fixed amount tax
   4. taxation under the Tonnage Tax Act or the Act on the activation of the shipbuilding industry and complementary industries.

Income does not include revenue that is subject to lump-sum income tax (e.g. winnings in number games, dividends, interest on bank deposits).

Tax is calculated on the sum of income less available reliefs, e.g. social insurance premiums, donations, the rehabilitation relief or thermal modernization relief.

An eligible single parent determines tax at twice the amount of tax calculated on half of their income.

A grown-up child who earned taxable income in the fiscal year is obliged to submit on their own a tax return with the amount of income earned from the date of coming of age, regardless of its amount. Regardless of the foregoing, an eligible parent of an adult child may settle tax as a single parent.

 

The indicated rules and method of taxation of the income of spouses and single parents apply also to:

1. spouses who are resident for tax purposes outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation,
2. spouses, one of whom is subject to an unlimited tax obligation in Poland and the other is resident for tax purposes outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation,
3. single parents resident for tax purposes outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation,

if they earned revenue taxable in Poland in the amount of at least 75% of the total revenue of the spouses or a single parent in the fiscal year. A non-resident taxable person must also document their place of residence for tax purposes with a certificate of residence.

To be allowed to have income taxed in the manner provided for spouses, widows and widowers or single parents, there also must be legal grounds under the double taxation avoidance agreement or other ratified international agreements to which Poland is a party. It is necessary for the tax authority to obtain tax information from the tax authority in the country where the natural person taking advantage of the preferences resides for tax purposes.

At the request of tax authorities, spouses, as well as single parents, are required to document the total amount of revenue earned in the fiscal year by presenting a certificate issued by the competent tax authority of the country where these persons are resident for tax purposes or other document confirming the amount of total revenue earned in the fiscal year.

Taxation in accordance with the method provided for in Article 29(4) of the Act

If taxable persons have residence for tax purposes confirmed with a certificate of residence outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation, and during the fiscal year, generated revenue from which the taxpayer deducted lump-sum income tax (indicated in IFT-1/IFT-1R information), they may – as requested in the tax return – have the earned revenue taxed using the tax scale.

In this case, the lump-sum income tax deducted during the fiscal year is treated the same as the income tax advance deducted by the taxpayer.

This rule applies if the double taxation avoidance agreement provides legal grounds for the tax authority to obtain tax information from the tax authority in the country where the natural person is resident for tax purposes.

 

Deduction is allowed

Deduction is allowed for the following premiums referred to in the provisions of the Act of 13 October 1998 on the social insurance system:

• premiums for old-age and disability insurance as well as for sickness insurance deducted and disclosed by the taxpayer in PIT-11,
• premiums for own old-age, disability, sickness, and accident insurance of the taxable person and persons cooperating with the taxable person, paid in the fiscal year by the taxable person, provided that these premiums were not previously recognized as tax-deductible expenses.

Premiums paid in the fiscal year from the taxable person’s funds for compulsory social insurance of the taxable person or persons cooperating with the taxable person are – in accordance with the provisions on compulsory social insurance in force outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation – deductible as well.

For such premiums to be deducted, there must be legal grounds under the double taxation avoidance agreement or other ratified international agreements to which Poland is a party, for the tax authority to obtain tax information from the tax authority in the country where the taxable person paid premiums for compulsory social insurance.

Social security premiums that are not deductible in PIT-36:

• premiums deducted from taxable income on the terms specified in Article 30c of the Act,
• premiums deducted from revenue under the provisions of the Act on lump sum income tax,
• premiums recognized as tax-deductible expenses,
• premiums refunded in any form to the taxable person,
• premiums assessed based on income (revenue) exempt from tax under the Act and income from which tax collection has been waived pursuant to the provisions of the Tax Code,
• premiums assessed based on income (revenue) exempt from tax under double taxation avoidance agreements to which Poland is a party,
• paid and deducted outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation from income (revenue) or tax earned in that country, or from tax pursuant to Article 27b(1)(2) of the Act.

The amount of expense for social insurance premiums is determined based on documents confirming that they have been incurred.

The amounts of social insurance premiums denominated in foreign currencies are to be converted into PLN at the average exchange rate announced by the National Bank of Poland on the last business day preceding the day when the expense is incurred.

Note! No deduction is allowed in the case of premiums paid from revenue that is exempt from tax under Article 21(1)

- subparagraph 148 of the Act (youth relief),

- subparagraph 152 of the Act (return relief),

- subparagraph 153 of the Act (relief for families 4+),

- subparagraph 154 of the Act (relief for seniors).

If both exempt and taxable income is earned, the taxable person may deduct from the total amount of social insurance premiums paid the amount equivalent to the percentage of taxable revenue in the total amount of this revenue and revenue covered by youth relief.

Information for taxable persons who earned revenue exempt from tax pursuant to Article 21(1)(148) and Article 21(1)(152)-(154) of the Act (shown in section D of the tax return) 

If the revenue shown in section D of PIT-36 tax return is the base for the assessment of non-deductible premiums, the taxable person (spouse, respectively) reduces the total amount of premiums paid (shown by the taxpayer) by that part thereof that is attributable to the revenue shown in section D of the tax return.

If revenue from employment and related relationships, contracts of mandate, graduate placements, student internships or maternity allowance, earned by the taxable person (spouse, respectively) in the period from 1 January 2022 to 31 December 2022, is fully exempt (does not exceed the limit of PLN 85,528), the reduction amount corresponds to the premiums shown in:

• items 87 and 88 in PIT-11(28) (only premiums from item 86 are deductible) or
• items 96 and 97 in PIT-11(29) (only premiums from item 95 are deductible).

The deduction amount is determined as follows:

• Taxable persons who earned revenue only from employment and related relationships.

One should add up the amounts from items 79, 81, 83 and 85 (the taxable person) or, respectively, the amounts from items 80, 82, 84 and 86 (the spouse), and then determine the percentage of exempt revenue in the calculated total, i.e. in the case of the taxable person, the share of the amount from item 79 in the total of the amounts from items 79, 81, 83 and 85, and in the case of the spouse, the share of the amount from item 80 in the total of the amounts from items 80, 82, 84 and 86.

The so determined share corresponds to that part of the premiums paid that reduces their total amount:

• • shown by the taxpayer in items 86, 87 and 88 in PIT-11(28) and in items 95, 96 and 97 in PIT-11(29).

• Taxable persons who earned revenue only from contracts of mandate, referred to in Article 13(8) of the Act.

One should add up the amounts from items 81 and 115 (the taxable person) or, respectively, the amounts from items 82 and 177 (the spouse), and then determine the percentage of exempt revenue in the calculated total, i.e. in the case of the taxable person, the share of the amount from item 81 in the total of the amounts from items 81 and 115, and in the case of the spouse, the share of the amount from item 82 in the total of the amounts from items 82 and 177.

The so determined share corresponds to that part of the premiums paid that reduces their total amount:

• • shown by the taxpayer in items 86, 87 and 88 in PIT-11(28);
  • shown by the taxpayer in items 95, 96 and 97 in PIT-11(29).

Taxable persons who earned revenue only from graduate placements or student internships.

One should add up the amounts from items 83 and 145 (the taxable person) or, respectively, the amounts from items 84 and 207 (the spouse), and then determine the percentage of exempt revenue in the calculated total, i.e. in the case of the taxable person, the share of the amount from item 83 in the total of the amounts from items 83 and 145, and in the case of the spouse, the share of the amount from item 84 in the total of the amounts from items 84 and 207.

The so determined share corresponds to that part of the premiums paid that reduces their total amount:

• • shown by the taxpayer in items 86, 87 and 88 in PIT-11(28);
  • shown by the taxpayer in items 95, 96 and 97 in PIT-11(29).

• Taxable persons who earned revenue only from maternal allowances.

One should add up the amounts from items 85 and 146 (the taxable person) or, respectively, the amounts from items 86 and 208 (the spouse), and then determine the percentage of exempt revenue in the calculated total, i.e. in the case of the taxable person, the share of the amount from item 85 in the total of the amounts from items 85 and 146, and in the case of the spouse, the share of the amount from item 86 in the total of the amounts from items 86 and 208.

The so determined share corresponds to that part of the premiums paid that reduces their total amount:

• • shown by the taxpayer in items 86, 87 and 88 in PIT-11(28);
  • shown by the taxpayer in items 95, 96 and 97 in PIT-11(29).

• Taxable persons who earned two types of revenue, i.e. from employment and related relationships and from contracts of mandate.

One should add up the amounts from items 79, 81, 89, 94 and 115 (the taxable person) or, respectively, the amounts from items 80, 82, 151, 156 and 177 (the spouse), and then determine the percentage of exempt revenue in the calculated total, i.e. in the case of the taxable person, the share of the total of the amount from items 79 and 81 in the total of the amounts from items 79, 81, 89, 94 and 115, and in the case of the spouse, the share of the amount from items 80 and 82 in the total of the amounts from items 80, 82, 151, 156 and 177.

The so determined share corresponds to that part of the premiums paid that reduces their total amount:

• • shown by the taxpayer in items 86, 87 and 88 in PIT-11(28);
  • shown by the taxpayer in items 95, 96 and 97 in PIT-11(29).

• Other taxable persons, including those who cannot determine the amount of deduction from the revenue shown in part D of the tax return on account of premiums paid (not deductible ones) based on documents held.

One should determine the share of the total of the amounts from items 79 and 81 in the total of the amounts from items 79, 81 and 147, and in the case of the spouse, the share of the total of the amounts from items 80 and 82 in the total of the amounts from items 80, 82 and 209.

The so determined share corresponds to that part of the premiums paid that reduces their total amount:

• • shown by the taxpayer in items 86, 87 and 88 in PIT-11(28);
  • shown by the taxpayer in items 95, 96 and 97 in PIT-11(29).

Income earned abroad

If you have earned your income outside Poland, you must remember that it may also be taxable.

Therefore, if you worked abroad or in Poland, but your remuneration was paid by or on behalf of an employer that does not have a place of residence or registered office in Poland, you have to show this remuneration together with other revenue earned in a given fiscal year and settle it in PIT-36.

The tax return must be accompanied by the PIT/ZG appendix, in which you will show the income earned abroad and – in certain cases – also the tax paid on income earned abroad.
If during the fiscal year you earned income in different countries, this appendix has to be submitted separately for each country in which you earned your income.

Remember that the tax return must include all revenue earned abroad that is subject to joint taxation, regardless of its sources.

The obligation to pay tax in Poland does not stem from the fact of having Polish citizenship, but from tax residency. A Polish resident subject to unlimited tax obligation is a person who, on the territory of Poland:

• has a center of their personal and economic interests (center of life interests) or
• resides in Poland for more than 183 days in the fiscal year.

If you meet at least one of the above-mentioned criteria, you are subject to tax on all income (revenue) earned in the year, regardless of where it was earned. This means that you have to tax in Poland also income (revenue) earned outside Poland, even that from ordinary lease, usufructuary lease or business activity. If you do not have a center of your personal or economic interests in Poland or stay in Poland for less than 183 days in the fiscal year, you are subject to a limited tax obligation, i.e. you are a non-resident. In this case, you should settle in Poland only the income (revenue) earned in Poland.

The method of foreign income taxation depends on whether Poland has signed a double taxation avoidance agreement with the country where you earned income.

The agreements concluded by Poland provide for two methods of double taxation avoidance:

• exemption with progression,
• proportional deduction.

If you have earned income in a country with which Poland has not concluded a double taxation avoidance agreement, the proportional deduction method applies.

Due to the amendments introduced by the MLI Convention to particular double taxation avoidance agreements, it is advisable to check at the beginning of each fiscal year which method applies to your income (revenue).

For more information visit: https://www.podatki.gov.pl/podatkowa-wspolpraca-miedzynarodowa/wykaz-umow-o-unikaniu-podwojnego-opodatkowania/ 

Exemption with progression method

In accordance with the exemption with progression method, income earned abroad is not taxable in Poland. However, in order to determine the tax rate to be applied to income earned in Poland, income earned abroad should also be taken into account.

In the case of the exemption with progression method, the obligation to submit an annual tax return applies if:

• you earn in Poland other income taxable according to the tax scale;
• you want to take advantage of preferential annual settlement, for example with your spouse or as a single parent.

Example of settlement in accordance with the exclusion with progression method:

1. income earned in Poland = PLN 20,000.00
2. income earned abroad = PLN 30,000.00
3. total income (a+b) = PLN 50,000.00
4. Polish tax according to the tax scale on PLN 50,000.00 = PLN 2,400
5. interest rate (d:c) = 4.8%
6. tax payable in Poland: 4.8% x PLN 20,000 = PLN 960.00 less advances paid in Poland

Proportional deduction method

In accordance with the proportional deduction method, income earned abroad must be always taxed jointly with that earned in Poland. You can deduct the tax paid abroad from the calculated tax. However, such deduction is possible only up to the amount of tax proportionally attributable to the income earned abroad.
Example of settlement in accordance with the proportional deduction method:

1. income earned in Poland = PLN 30,000.00
2. income earned abroad = PLN 20,000.00
3. tax paid abroad = PLN 5,000.00
4. Polish tax according to the tax scale on PLN 50,000.00 = PLN 2,400
5. interest rate (d:c) = 4.8%
6. tax payable in Poland: 4.8% x PLN 20,000 = PLN 960.00 less advances paid in Poland

Example of settlement in accordance with the proportional deduction method:

1. income earned in Poland = PLN 30,000.00
2. income earned abroad = PLN 20,000.00
3. tax paid abroad = PLN 5,000.00
4. total income (a+b) = PLN 50,000.00
5. Polish tax according to the tax scale on PLN 50,000.00 = PLN 2,400
6. foreign tax to be deducted from Polish tax: PLN 2,400 x PLN 20,000: PLN 50,000 zł = PLN 960
7. tax payable in Poland: PLN 2,400 - PLN 960 = PLN 1,440 less advances paid in Poland

Pursuant to Article 1(15) of the Act of 28 November 2020 amending the Personal Income Tax Act, the Corporate Income Tax, the Act on lump-sum income tax on certain revenue earned by natural persons, and certain other acts, abolition relief has been amended with respect to revenue earned abroad after 1 January 2021.

In accordance with the aforementioned provision, a deduction on account of abolition relief may not exceed PLN 1,360.

The above limit does not apply to income from work under employment contracts as well as contracts of mandate and contracts for specific work performed outside the land territory of countries. The above exclusion is available to, for example, individuals working on ships or drilling rigs.

Determination of taxable income

Regardless of the type of double taxation avoidance method, the method of determining income is the same:

If you live in Poland, and while temporarily staying abroad, you earned income from work there, you can reduce your income by the equivalent of 30% of the subsistence allowance specified in other regulations.
You are entitled to this deduction for each day of stay abroad when you worked.
When calculating the number of days of stay abroad, you can also take into account Saturdays, Sundays, holidays, days of business trips and days of holiday leave.

Revenue denominated in foreign currencies has to be converted into PLN at the average exchange rate announced by the National Bank of Poland on the last business day preceding the day when the revenue was earned (payment of the salary or making it available).

You can reduce the thus calculated income by tax-deductible expenses:

• • PLN 250 per month, or
  • PLN 300 per month –if your place of residence was outside the locality where you worked.

If you earned outside Poland revenue from activities performed in person (e.g. under a contract of mandate or contract for specific work), you can deduct expenses in the amount of 20% of your income, and if the contract relates to copyright – tax-deductible expenses account for 50% of your income.
If the expenses you incurred related to earning revenue are higher than 20% or 50%, respectively, and you have documents confirming that they were incurred, you can deduct expenses in the amount actually incurred

 

Old-age and disability pensions

Revenue under old-age and disability pensions includes:

• old-age benefits, including funded pensions,
• disability benefits, including structural pensions, social pensions, along with increases and allowances (excluding family and attendance allowances and allowances increasing survivors’ pensions for double orphans),
• pre-retirement benefits, pre-retirement allowances, teacher’s compensation benefits,
• supplementary parental benefit, paid by the pension authority.

Ordinary lease or usufructuary lease

If, as the owner, you let your house, apartment, room, garage or other commercial premises, or you lease real estate and earn revenue on this account, you should show this revenue in the annual tax return.

There are two options for taxing this type of income – assuming that the ordinary/usufructuary lease is not provided as part of non-agricultural business activity:

• on general terms, i.e. according to the tax scale,
• with registered lump-sum tax.

If revenue from ordinary lease is generated both by YOU and your spouse in tenancy by the entirety, the revenue should – as a rule – be taxed separately, in proportion to the right to the share in the profit.

Unless otherwise specified, the rights to profit sharing are assumed to be equal.

In the case of tenancy by the entirety, revenue/income earned from private lease may be taxed in full by one of the spouses. In this case, you or your spouse should submit a written declaration to the tax office and specify which of you will fully settle the tax on the revenue (income) from the lease.

A declaration of taxation of all income earned from private lease by one of the spouses and a notice of resignation from this method of settlement, filed on behalf of both spouses may be signed by one of them. However, such declaration is made under the pain of criminal liability for false testimony.

It is worth mentioning that there is also a deadline for taxable persons under the Lump-Sum Income Tax Act for submitting a declaration of taxation of the entire revenue from private lease by one of the spouses and a notice of resignation from this method of settlement.

You may submit such declaration by the 20th day of the month following the month in which the first revenue on this account was received in the fiscal year, or by the end of the fiscal year, if the first such revenue was earned in December of the fiscal year.
The same deadlines apply to submitting a notice of resignation from this method of settlement (Article 8(3)-(6) of the PIT Act and Article 12(6)-(8a) and (8c) of the Lump-Sum Income Tax Act) by spouses. The primary form of taxation of revenue from private lease is taxation on general terms, according to the tax scale. Therefore, you should show revenue from this source in the annual PIT-36 tax return, and if you obtain income, you should pay tax to the tax office.

Pursuant to the provisions of the Act, ordinary/usufructuary lease is taxed on general terms, and tax on this account is payable on income, i.e. on the difference between the actually earned revenue from ordinary/usufructuary lease and tax-deductible expenses. All expenses related to the let premises/real estate, incurred by the owner to earn revenue from this source or on its maintenance or protection, may be recognized as tax-deductible expenses. However, such expenses must be properly documented. Then the excess of revenue over expenses constitutes taxable income. Only the expenses listed in Article 23 of the Personal Income Tax Act are non-deductible.

It should be noted, however, that no expenses related to the subject of ordinary/usufructuary lease incurred by the lessee may be recognized as tax-deductible expenses by the lessor (owner).

Moreover, if the lease agreement contains a clause providing for the payment of a deposit to the lessor, part or all of which will be retained by the lessor, this amount should be added to the revenue from this source. Otherwise, the value of the deposit is not added to the revenue, as it is refundable.

Income from ordinary/usufructuary lease is added up with other income earned in a given fiscal year. You can make deductions from income from ordinary/usufructuary lease available to taxable persons who pay their tax on general terms.

Tax-deductible expenses at a 50% rate under copyright and other property rights

Tax-deductible expenses under:

• payment to the author for the transfer of the ownership of an invention, topography of an integrated circuit, utility model, industrial design, trademark or ornamental design – in the amount of 50% of the revenue earned (Article 22(9)(1) of the Act),
• license fee for the transfer of the right to use an invention, topography of an integrated circuit, utility model, industrial design, trademark or decorative design, received in the first year of the license term from the first entity with which the license agreement was concluded – in the amount of 50% of the revenue earned (Article 22(9)(2) of the Act),
• exercising copyright by creators and the neighboring rights by performer-artists, within the meaning of other regulations, or disposing of the said rights by them– in the amount of 50% of the revenue earned, with the proviso that these expenses are calculated with respect to the revenue less old-age and disability as well as sickness insurance premiums referred to in Article 26(1)(2)(b), assessed based on this revenue and deducted by the taxpayer in a given month (Article 22(9)(3) of the Act).

Note! Total tax-deductible expenses referred to in Article 22(9)(1)-(3) of the Act may not exceed PLN 120,000 in the fiscal year.

Where the exemption referred to in Article 21(1)(148) and Article 21(1)(152)-(154) of the Act (youth relief, return relief, relief for families 4+ and the relief for working seniors) is applied, the sum of the total tax-deductible expenses referred to in Article 22(9)(1)-(3) of the Act and revenue exempt from tax pursuant to Article 21(1)(148) and Article 21(1)(152)-(154) of the Act, may not exceed PLN 120,000 in the fiscal year.If you prove that tax-deductible expenses were higher than those indicated above (calculated at a 50% rate), you may recognize expenses in the amount of those actually incurred.You may thus recognize expenses actually incurred, even if they exceed PLN 120,000.
Tax-deductible expenses also include expenses incurred in the years preceding the fiscal year in which revenue corresponding to them was earned as well as expenses incurred in the year of the tax return submission, but not later than until the expiry of the deadline for submitting this tax return (Article 22(5) and Article 22(5a)(2) of the Act).
In order to be entitled to deduct actually incurred expenses, the taxable person must be in possession of documents indicating the amount of expenses incurred, such as bills, invoices, agreements and other evidence documenting expenses incurred to earn revenue or maintain or secure the revenue source. All documents related to tax settlement should be kept until the tax liability expires, i.e. for 5 years from the end of the fiscal year in which the settlement was made.

Sale of goods

Taxation together with other income applies also to the sale of movables, if they have been sold within six months of their purchase and they are not sold as part of business activity. The 6-month period starts running from the end of the month in which the purchase was made.

If the sale of movable property took place after the expiry of the aforementioned period, no tax obligation arises and you do not have to show such amounts in the tax return.

Unregistered activity

Revenue from unregistered activity includes receivables received from the sale of goods or services.
In order to properly determine revenue from unregistered activity you have to:

• keep a record of sales:
  • comply with consumer rights,
  • issue invoices or bills at the request of the buyer.

Remember that the provisions on unregistered activity do not apply to partners of a civil partnership.

As part of unregistered activity, you may not perform regulated activity, i.e. activity that requires special permits, licenses, etc.

Income from unregistered activity has to be settled in the annual PIT-36(30) tax return (items 132-135 and 194-197). You are not required to pay income tax advances during the year. You can show in the annual tax return expenses incurred strictly in connection with the activity performed. These expenses should be documented, so you should keep all evidence related to your business.

Unregistered activity is a solution for those who:

• during the last 60 months have not performed any business activity and
• as part of this activity, do not earn in any month revenue due in an amount in excess of 50% of the minimum wage

Amounts received are those that you receive at the time of sale or before the sale, e.g. advance payments, while amounts due are those that you have not received yet at the time of sale – you have sold goods or performed a service and issued a sales document (bill, invoice), but the customer has not paid you yet).

Remember that exceeding the permissible limit for revenue due from unregistered activity means that from the next day on you run a business activity and are required to apply for entry into CEIDG (Central Registration and Information on Business). It has to be done within 7 days of exceeding this limit.

 

Revenue from the sale of processed plant and animal products

Income tax is also paid on income from the sale of plant and animal products processed otherwise than in industrial manner, with the exception of processed plant and animal products obtained within special branches of agricultural production and products subject to excise duty under other regulations, e.g. if:

• processing of plant and animal products and their sale does not involve employing individuals under employment contracts, contracts of mandate, contracts for specific work and other contracts of a similar nature, excluding the slaughter of slaughter animals and post-slaughter processing of these animals, including cutting, splitting and classification of meat, grain milling, oil or juice pressing as well as sales thereof during exhibitions, festivals, fairs and shows,
• the amount of plant or animal products from farming, breeding or rearing on one’s own, used for the production of a given product, constitutes at least 50% of this product, excluding water.

Since 2022, the limit of revenue from the sale of processed plant and animal products exempt from taxation has been PLN 100,000. This means that you will be obliged to tax such revenue only if your revenue from the sale of processed plant and animal products exceeds PLN 100,000 in a year. You can tax your revenue on general terms according to the tax scale or with a 2% lump-sum income tax.
You have to communicate the choice of lump-sum tax to the head of the tax office.

Other sources

Revenue from other sources applies to taxable persons who:

1. earned – through the agency of the taxpayer(s) – revenue in the form of, for example:
   
   • membership in an agricultural production cooperative or other cooperative engaged in agricultural production,
   • cash benefits from social insurance, including those paid by the employing establishment,
   • remuneration for work payable to temporarily arrested or convicted persons,
   • benefits paid from the Labor Fund and the Guaranteed Employee Benefit Fund,
   • scholarship, including that referred to in Article 21(1)(40b) of the Act, in an amount exceeding the amount exempt from tax,
   • integration benefits and an incentive integration bonus, granted under the Act of 13 June 2003 on social employment,
   • remuneration payable under an employment support contract,
   • cash benefits paid for graduate placements, referred to in the Act of 17 July 2009 on graduate placements, or student internships referred to in Article 121a of the Act of 14 December 2016 – Educational Law,
2. have received PIT-11 with a completed section “Information on the amount of revenue referred to in Article 20(1) of the Act”,
3. are required to show the amounts previously deducted from income on account of expenses incurred for their own housing purposes or multi-family housing for rent, to which they are no longer entitled, i.e. in the case of:
   • withdrawal of the housing or building contribution from the housing cooperative, that was made from 1 January 1992,
   • complete change of the intended use of premises or residential building from residential to commercial,
   • reimbursement of previously deducted expenses,
   • withdrawal of accumulated savings from the housing fund, except where the withdrawn amount, following the systematic saving period specified in the contractual loan agreement, has been spent in accordance with the systematic saving objectives in an account kept by the fund,
   • assignment of the entitlement to a savings and loan account to third parties, except for one’s own or adopted children,
   • occurrence of events related to the loss of the right to relief on account of multi-family housing for rent, referred to in Article 7(14) of the Act of 9 November 2000 amending the Personal Income Tax Act and certain other acts,
     
     
4. are obliged to add to their income the amounts previously deducted from the income or the tax base in connection with the receipt in the fiscal year of a refund (in whole or in part) of the deducted amounts (e.g. donations, social insurance premiums),
5. tax – using the tax scale – revenue listed in Article 29(1) of the Act, but this revenue has not been qualified as the sources listed in lines 1 - 4.

The taxable person is not entitled to tax-deductible expenses in the case of revenue from:

• membership in an agricultural production cooperative or other cooperative engaged in agricultural production,
• cash benefits from social insurance,
• remuneration for work payable to temporarily arrested or convicted persons,
• benefits paid from the Labor Fund and the Guaranteed Employee Benefit Fund,
• scholarships,
• integration benefits and an incentive integration bonus, granted under the Act on social employment,
• cash benefits paid for graduate placement or student internships.

Information for taxable persons who received in 2022 a scholarship fully or partially exempt from tax pursuant to Article 21(1)(40b) of the Act.

Pursuant to Article 2(1)(40b) of the Act, scholarships for pupils and students, whose amounts and the rules for their award are set out in a resolution of the decision-making body of the local government unit, as well as scholarships for pupils and students, awarded by the organizations referred to in Article 3(2) and (3) of the Act on public benefit and volunteer work, in accordance with regulations approved by their statutory bodies, made available to the public via the Internet, mass media or displayed (put up) for those interested in public spaces, are exempt from tax up to PLN 3,800 in the fiscal year.

Information on capital gains

 Revenue earned by taxable persons covered by an unlimited tax obligation, referred to in Article 3(1) of the Act, who earned interest income (revenue) and discounts on securities, dividends and other revenue from share in the profits of legal persons or from participation in equity funds, from which the taxpayer deducted tax in accordance with Article 30a(2a) of the Act.

Tax additions

The obligation to show and add amounts previously deducted from tax applies to taxable persons who, among others:

1. took advantage of tax deductions for expenses incurred for their own housing needs, and then in the fiscal year:
   
   • withdrew the housing or building contribution from the cooperative,
   • completely changed the intended use of premises or a residential building from residential to commercial,
   • received a refund of the deducted expenses after the year in which they made the deductions, except where the refunded amounts were qualified as taxable revenue,
   • withdrew accumulated savings from the housing fund, except where the withdrawn amount, following the systematic saving period specified in the contractual loan agreement, has been spent in accordance with the systematic saving objectives in an account kept by the fund,
   • assigned the entitlement to a savings and loan account to third parties, except for one’s own or adopted children,
   • sold the land or the right of perpetual usufruct of the land,
2. 2. are obliged to add to tax the amounts previously deducted from tax in connection with the receipt in the fiscal year of a refund (in whole or in part) of the deducted amounts (e.g. health insurance premiums).

Losses carried forward

In the tax return for 2022, you may show losses incurred in 2017, 2018, 2019, 2020 or 2021. You are entitled to deduct it from the same source from which it was incurred. You are entitled to deduct a loss from income in the following five consecutive fiscal years.

If the loss arose by 31 December 2018, the deduction amount may not exceed 50% of the loss amount. The above rule for deducting losses is set out in Article 9(3) of the Act – with the wording in force until 31 December 2018 – and applies to losses incurred until the end of 2018.

It should be remembered that losses incurred after 31 December 2018 are deducted in accordance with different rules.

Pursuant to Article 9(3) of the Act – with the wording in force since 1 January 2019 – you may use the amount of a loss from a source of revenue, incurred in the fiscal year, to:

make a one-off reduction of the revenue obtained from this source in one of the following five consecutive fiscal years by an amount of up to PLN 5,000,000. The non-deducted amount is subject to settlement in the remaining years of this five-year period, but the reduction amount in any of these years may not exceed 50% of this loss amount.

You can deduct a loss incurred, among others, from the following income sources:

• business activity,
• ordinary lease, usufructuary lease,
• sale of shares in companies,
• sale of securities, including the sale of borrowed securities (short sale),
• sale of derivative financial instruments and the exercise of rights arising therefrom,
• taking up shares in companies in exchange for a non-cash contribution in a form other than an enterprise or its organized part,
• taking up contributions in cooperatives in exchange for a non-cash contribution in a form other than an enterprise or its organized part,
• sale of plant and animal products from own crops, breeding or rearing, processed by way of non-industrial methods, referred to in Article 20(1c) of the Act, also if the above-mentioned revenue is subject to lump-sum tax on recorded revenue.

It is not possible to deduct losses incurred from:

• revenue sources generating income exempt from income tax;
• sale of real estate or a part thereof, a cooperative ownership right to an apartment or commercial premises, the right to a single-family house in a housing cooperative, as well as the right to perpetual usufruct of land;
• sale of goods;
• special branches of agricultural production, if for the period of the next five fiscal years income will not be determined in accordance with tax books – ledger or a book of revenue and expenses.

Pensions paid in Poland and abroad

If your child received in 2022 income from a survivor’s pension, you do not add it to your income.
As a result of the changes introduced as part of Low Taxes, from 2022, a minor child becomes a taxable person with a separate tax-free amount of PLN 30,000.
If your child has not earned other revenue, you do not have to submit a tax return on their behalf if the pension authority makes the settlement on the PIT-40A form

Ordinary lease or usufructuary lease

If the parents have the right to the proceeds from the lease of real estate owned by their minor child, income from this source should be added to the parents’ income.
As spouses are, as a rule, subject to separate taxation, the income of a minor child should be added in half to the income of each of the spouses who are the parents of that child.
Therefore, if your minor child has earned income or suffered a loss on account of ordinary or usufructuary lease of real estate or things belonging to them and taxation on general terms has been chosen, you have to show it in PIT/M and in PIT-36 together with your income.

Property rights

Article 18 of the Personal Income Tax Act provides that revenue from property rights includes, in particular, revenue from copyright and neighboring rights within the meaning of other regulations, rights to inventive designs, rights to the topography of integrated circuits, trademarks and ornamental designs, including revenue from the sale of these rights. The aforementioned provision mentions only certain types of revenue, constituting a non-exhaustive list.

If the parents have the right to the proceeds from property rights held by their minor child, income from this source should be added to the parents’ income. As spouses are, as a rule, subject to separate taxation, the income of a minor child should be added in half to the income of each of the spouses who are the parents of that child, as in this case, these are the parents that are taxable persons, not the minor child.

Therefore, if your minor child has earned income or suffered a loss on account of property rights held by them, you have to show it in PIT/M and in PIT-36 together with your income.

Other sources

Revenue from other sources includes, in particular: amounts paid after the death of a member of an open-ended pension fund to a person or a member of their immediate family designated by them, within the meaning of the provisions on the organization and operation of pension funds, amounts refunded from an individual pension security account and payments from an individual pension security account, including payments made to the entitled person in the event of the saver’s death, cash benefits from social insurance, financial maintenance, scholarships, benefits received under a harvest help contract, subsidies (grants) other than those mentioned in Article 14 of the Personal Income Tax Act, surcharges, awards, and other gratuitous benefits not included in the revenue specified in Articles 12-14 and Article 17 of this Act.

These are only some examples of types of revenue from other sources, as their list is non-exhaustive.

If the parents have the right to the proceeds from revenue from other sources owned by their minor child, income from these sources should be added to the parents’ income. As spouses are, as a rule, subject to separate taxation, the income of a minor child should be added in half to the income of each of the spouses who are the parents of that child, as in this case, these are the parents that are taxable persons, not the minor child. Therefore, if your minor child has earned income or suffered a loss from other sources, you have to show it in PIT/M and in PIT-36 together with your income.

Check what reliefs you are entitled to:

• Youth relief;
• Return relief;
• Relief for families 4+;
• Relief for seniors;
• Relief for transferred donations;
• Internet relief;
• Rehabilitation relief;
• Thermal modernization relief;
• Relief for payments to the individual pension security account (IKZE);
• Relief for refund of unduly received benefits;
• Child relief;
• Refund of unused child relief;
• Relief for training students or for employing apprentices;
• Housing reliefs;
• Relief for trade unions;
• Relief for monuments;
• Abolition relief;
• Relief for an employment support contract.

Taxable person

Section O of PIT-36 applies to persons who do not have a place of residence in Poland (Article 3(2a)), are subject to a tax obligation only with respect to income (revenue) earned in the territory of Poland (limited tax obligation), and earn revenue specified in Article 29 of the Personal Income Tax Act.

In this case you are obliged to pay lump-sum income tax in accordance with the rules referred to in Article 29, for the months in which you earned the said income, without being requested to do so. You should make payments by the 20^th day of the following month for the previous month. Tax for December is payable by the deadline for filing the tax return. The advances should be shown in PIT-36, in section O.

Article 29(1) of the Personal Income Tax Act specifies the following types of revenue and the lump-sum tax rate applicable to this revenue:

• revenue from the activities specified in Article 13(2) and (6)-(9) and from interest other than that mentioned in Article 30a(1), under copyright or neighboring rights, rights to inventive designs, trademarks, and ornamental designs, including the sale of these rights, from fees for disclosing the secret of a recipe or production process, for the use or the right to use an industrial, commercial or scientific device, including a means of transport, and for information related to know-how in the field of industry, commerce or science – the lump-sum tax rate applicable to this revenue is 20%;
• revenue from fees for services related to shows, entertainment or sports, provided by natural persons residing abroad, and organized by natural persons or legal persons conducting business activity in the area of artistic, entertainment or sports events in the territory of Poland – the lump-sum tax rate applicable to this revenue is 20%;
• revenue from due fees for the export of cargo and passengers transported from Polish ports by foreign commercial shipping companies, with the exception of transit cargo and passengers – the lump-sum tax rate applicable to this revenue is 10%;
• revenue earned on the territory of Poland by foreign air navigation companies, excluding revenue from scheduled air passenger transport, the use of which requires the passenger to have an air ticket – the lump-sum tax rate applicable to this revenue is 10%;
• revenue for consultancy, accounting services, market research, legal services, advertising, management and control services, as well as data processing, employee recruitment and acquisition, guarantees and sureties, and similar services – the lump-sum tax rate applicable to this revenue is 20%.

The above revenue is subject to double taxation avoidance agreements to which Poland is a party.

However, the application of the tax rate resulting from the relevant double taxation avoidance agreement or abandoning tax collection (payment) in accordance with such agreement is possible provided that you document for tax purposes your place of residence with a certificate of residence.

The provisions of Article 29(1) do not apply if the revenue referred to therein was obtained by a person referred to in section O of the tax return, conducting non-agricultural business activity through a foreign establishment located on the territory of Poland, provided that such person holds a certificate confirming the existence of that foreign establishment, issued by the competent tax authority of the country where this person resides or by the competent tax authority of the country where the foreign establishment is located.

If you are a non-resident (i.e. a person referred to in Article 3(2a) of the Act) and:

• have a place of residence for tax purposes in a country of the European Union other than Poland or in another country of the European Economic Area or the Swiss Confederation, and
• have documented your place of residence for tax purposes with a certificate of residence

– you may, at a request made in the tax return for the 2022 fiscal year, tax revenue referred to in paragraph 1, subject to taxation in Poland, on the general terms. In this case, you may treat the lump-sum income tax collected on this revenue as an income tax advance deducted by the taxpayer.

Such taxation may be applied, however, only if there are legal grounds under a double taxation avoidance agreement or other ratified international agreements to which Poland is a party, for the Polish tax authority to obtain tax information from the tax authority in the country where you have a place of residence for tax purposes.

Remember that the deduction referred to in Article 21(1)(148) and Article 21(1)(152)-(154) (youth relief, return relief, relief for families 4+ and the relief for working seniors) does not apply to revenue listed in Article 29, earned by persons referred to in Article 3(2a) (with an limited tax obligation).

Spouse

Section O of PIT-36 applies to persons who do not have a place of residence in Poland (Article 3(2a)), are subject to a tax obligation only with respect to income (revenue) earned in the territory of Poland (limited tax obligation), and earn revenue specified in Article 29 of the Personal Income Tax Act.

Such persons are obliged to pay lump-sum income tax in accordance with the rules referred to in Article 29, for the months in which they earned the said income, without being requested to do so. Payments should be made by the 20^th day of the following month for the previous month. Tax for December is payable by the deadline for filing the tax return. The advances should be shown in PIT-36, in section O.

Article 29(1) of the Personal Income Tax Act specifies the following types of revenue and the lump-sum tax rate applicable to this revenue:

• revenue from the activities specified in Article 13(2) and (6)-(9) and from interest other than that mentioned in Article 30a(1), under copyright or neighboring rights, rights to inventive designs, trademarks, and ornamental designs, including the sale of these rights, from fees for disclosing the secret of a recipe or production process, for the use or the right to use an industrial, commercial or scientific device, including a means of transport, and for information related to know-how in the field of industry, commerce or science – the lump-sum tax rate applicable to this revenue is 20%;
• revenue from fees for services related to shows, entertainment or sports, provided by natural persons residing abroad, and organized by natural persons or legal persons conducting business activity in the area of artistic, entertainment or sports events in the territory of Poland – the lump-sum tax rate applicable to this revenue is 20%;
• revenue from due fees for the export of cargo and passengers transported from Polish ports by foreign commercial shipping companies, with the exception of transit cargo and passengers – the lump-sum tax rate applicable to this revenue is 10%;
• revenue earned on the territory of Poland by foreign air navigation companies, excluding revenue from scheduled air passenger transport, the use of which requires the passenger to have an air ticket – the lump-sum tax rate applicable to this revenue is 10%;
• revenue for consultancy, accounting services, market research, legal services, advertising, management and control services, as well as data processing, employee recruitment and acquisition, guarantees and sureties, and similar services – the lump-sum tax rate applicable to this revenue is 20%.

The above revenue is subject to double taxation avoidance agreements to which Poland is a party. However, the application of the tax rate resulting from the relevant double taxation avoidance agreement or abandoning tax collection (payment) in accordance with such agreement is possible provided that the taxable person’s place of residence is documented for tax purposes with a certificate of residence.

The provisions of Article 29(1) do not apply if the revenue referred to therein was obtained by a person referred to in section O of the tax return, conducting non-agricultural business activity through a foreign establishment located on the territory of Poland, provided that such person holds a certificate confirming the existence of that foreign establishment, issued by the competent tax authority of the country where this person resides or by the competent tax authority of the country where the foreign establishment is located.

If you are a non-resident (i.e. a person referred to in Article 3(2a) of the Act) and:

• have a place of residence for tax purposes in a country of the European Union other than Poland or in another country of the European Economic Area or the Swiss Confederation, and
• have documented your place of residence for tax purposes with a certificate of residence

– you may, at a request made in the tax return for the 2022 fiscal year, tax revenue referred to in paragraph 1, subject to taxation in Poland, on the general terms. In this case, you may treat the lump-sum income tax collected on this revenue as an income tax advance deducted by the taxpayer.

Such taxation may be applied, however, only if there are legal grounds under a double taxation avoidance agreement or other ratified international agreements to which Poland is a party, for the Polish tax authority to obtain tax information from the tax authority in the country where you have a place of residence for tax purposes.

Remember that the deduction referred to in Article 21(1)(148) and Article 21(1)(152)-(154) (youth relief, return relief, relief for families 4+ and the relief for working seniors) does not apply to revenue listed in Article 29, earned by persons referred to in Article 3(2a) (with a limited tax obligation).

Table with advances due

Section Q of PIT-36 relates to persons who:

1. earn income without the mediation of taxpayers:
• under an employment relationship abroad,
• from old-age and disability pensions from abroad,
• under entitlements specified in Article 13(2), Article 13(4) and Article 13(6)-(9) of the Act, subject to paragraph 1(1).

Such persons are required to make during the fiscal year advance payments for income tax that have to be shown in PIT-36, section Q.

The entitlements specified in Article 13(2), Article 13(4) and Article 13(6)-(9) include:

• revenue from artistic, literary, scientific, training, educational and columnist activity performed in person, including revenue from participation in contests in the field of science, culture, arts, and journalism, as well as revenue from playing sport, sports grants awarded under other regulations, and revenue earned by referees, umpires and judges running sports events (subparagraph 2);
• revenue earned by Polish arbitrators participating in arbitration with foreign partners (subparagraph 4);
• revenue of persons who were commissioned by state administration or local government authorities, the court or a public prosecutor, under relevant regulations, to perform certain activities, in particular revenue of experts in court, investigative or administrative procedures as well as remitters, subject to Article 14(2)(10) of the Act, and collectors of public and legal fees, and revenue from participation in committees appointed by state administration or local government authorities, except for revenue referred to in subparagraph 9 (Article 13(6));
• revenue earned by persons, irrespective of the manner of their appointment, who are members of management boards, supervisory boards, other decision-making bodies and committees of legal persons (subparagraph 7);
• revenue earned by members of the National Media Council (subparagraph 7a);
• revenue from the performance of services under a contract of mandate or a contract for specific work, obtained only from:
  • a natural person conducting business activity, a legal person and its organizational unit, as well as an organizational unit without legal personality,
  • the owner (holder) of real estate with premises for rent, or the manager or administrator acting on their behalf – if the taxable person performs such services only for the purposes related with this real estate,
  • an enterprise in inheritance

- with the exception of revenue earned under contracts concluded as part of non-agricultural business activity conducted by the taxable person and revenue referred to in subparagraph 9 (Article 13(8));

• revenue earned under enterprise management contracts, manager contracts or other contracts of this type, including revenue under such agreements concluded as part of non-agricultural business activity conducted by the taxable person – except for revenue referred to in subparagraph 7 (Article 13(9));

1. earned revenue from other sources referred to in Article 10(1)(9) of the Act, under a contract to which the provisions of civil law relating to contracts of mandate or contracts for specific work apply;
2. reside in Poland and are subject to tax on all their income (revenue) regardless of the location of income sources (unlimited tax obligation), and are temporarily staying abroad and earning income from revenue sources located outside Poland.

Persons referred to in points 1 and 3 are required to calculate advance income tax and pay it on their own.

They are obliged to makes the payment, respectively:

• by the 20^th day of the month following the month in which the income was earned, and for December – by the deadline for submitting the tax return, applying to the income obtained the lowest tax rate specified in the scale referred to in Article 27(1) of the Act; when determining the income from which an advance payment should be calculated, the taxable person is entitled to take into account the monthly tax-deductible expenses in the amount specified in Article 22(2) or (9) of the Act and the premiums referred to in Article 26(1)(2) or (2a), paid in a given month. When calculating the advance, the taxable person may apply a higher tax rate specified in the scale referred to in Article 27(1). The taxable person may reduce the thus calculated advance payment by the amount of health insurance premium referred to in Article 27b, paid in a given month from the taxable person’s funds;
• by the 20^th day of the month following the month in which the person returned to Poland. If the payment deadline falls after the end of the fiscal year, the output tax is payable by the deadline for submitting the tax return. A due advance payment is calculated in accordance with the above-mentioned rules.

Persons referred to in point 2, i.e. those who have earned revenue from other sources referred to in Article 10(1)(9) of the Act, under a contract to which the provisions of civil law relating to contracts of mandate or contracts for specific work apply, may pay monthly tax advances during the fiscal year, applying to their income the lowest tax rate specified in the scale referred to in Article 27(1). When calculating the advance, the taxable person may apply a higher tax rate specified in the scale referred to in Article 27(1) of the Act. Taxable income is understood as revenue earned in a given month less tax-deductible expenses referred to in Article 22(9)(6) of the Act. Monthly tax advances should be paid to the account by the 20^th day of the month following the month in which income was earned, and for December – by the deadline for submitting the tax return.

Other information

PERSONAL ACCOUNT FOR OVERPAYMENT REFUND

If the tax return shows an overpayment, you may indicate in this section an account other than the one related to the business activity you conduct, to which the overpayment is to be refunded.

You may be the holder or co-holder of the indicated account. An account held or jointly held by your spouse may be indicated only where a joint tax return is submitted. The indicated account updates the account previously reported to the tax office.

If you have a valid Large Family Card (KRD), you may take advantage of an accelerated tax overpayment refund. This option is available to those who submit their tax return in electronic form.

Provide contact details: phone number, e-mail address.

Certificate of residence

Certificate of residence proving your place of residence for tax purposes.

It is your duty to submit a certificate of residence if you have a place of residence for tax purposes outside Poland in a country of the European Union, the European Economic Area or the Swiss Confederation, and pursuant to Article 45(7a) of the Act you have chosen the taxation method provided for income earned by married couples or single parents, or wish to have revenue specified in Article 29(1) of the Act taxed on general terms using the tax scale.