1. Governmental authorities, who are are responsible for corporate income taxes (CIT), personal income taxes (PIT), value-added taxes (VAT), excise duty, and civil transactions taxes
2. Local government authorities, who are responsible for real estate taxes and vehicle taxes
TAXES
The tax system in Poland is managed by two different authorities:
The individual job positions responsible for tax administration are:
• The Head of National Revenue Administration, who is responsible for issues related to tax avoidance and advance pricing agreements
• The Director of the National Revenue Information System, who is responsible for issuing individual advance tax rulings
• The Minister of Finance, who is responsible for issuing general advance tax rulings
Taxes
Taxpayers are responsible for filing their own taxes, no matter their source of income. If you have a place of residence in Poland you will be taxed based on your total income. If you do not have a place of residence in Poland then you will be taxed based on what you earned in Poland. You are considered to have a place of residence in Poland if you are physically in Poland for more than 183 days during the tax year, or you have a location of personal or economic interests in Poland. Rules surrounding residency take into account the nation’s tax treaties. So even if you pass the residence test for Poland, you may still have to pay taxes in another country where you also have residence.
The deadline to file taxes for the previous year is 30 April. To file your tax return you will need a document referred to as the Personal Income Tax (PIT). You can find PITs either online or at your local tax office. The easiest way to file your PIT is online. There are downloadable programs available for free, such as E-pity, that can assist you. PIT declarations must be submitted on time. A delayed submission could result in a fine or even a criminal accusation. You can find further information on the PITs at podatki.gov.pl.
The following types of income are subject to the Personal Income Tax (PIT):
• a labor-based relationship
• personal services
• non-agricultural business operations
• special departments of agricultural production
• leases, subleases, tenancy, and sub-tenancies
• monetary capital and property rights
• paid-for removal of property or parts of the property
• business operated through a controlled foreign company (CFC)
The Personal Income Tax, however, does not include any revenue generated from inheritances, donations, a business that cannot be bound by a legal agreement, or any income susceptible to tonnage taxes.
Employers are required to send the PIT-11 form either to the employee or the Tax Office by the end of February. The form should include information on income, tax-deductible costs, tax-deductible advances, social security, and health insurance. Due to this PIT-11 deadline, you could have your actual tax return submitted by 1 March. The final deadline for an employee to file their PIT return is 30 April, with no exceptions. The tax office you file it with depends on your residential address. Please take note that it is possible for married couples to file their taxes together. Depending on your circumstances, it might be more beneficial to your household to file together, such as when one spouse no or low income. These types of returns must also be filed by 30 April. If you need information or help with your tax return, you can contact your local tax office or certain non-governmental organizations. Make sure to check their business hours for up-to-date information.
Provisions for dividends taxation in Poland
In order to protect companies from being taxed in more than one country, Poland and has signed treaties with over 80 countries. Treaties like these also affect the taxation of dividends by reducing the withholding rate on them, including interests, royalties, and capital gains. There is also a Parent-Subsidiary Directive for companies in Poland, exempting some EU companies from paying dividends altogether.
Mandatory contributions to social insurance
The social insurance scheme in Poland includes benefits for pension, disability, sickness and maternity leave. Everyone is entitled to health insurance benefits in case any illness, injury, or life-threatening condition should arise. However, in order to receive your benefits, both you and your employer have to contribute to the National Health Fund (NFZ). The following percentages must be contributed from an employee’s wages: 19,52% for pension, 13% for annuities, 2,45% for sickness, 0.90% to 3.60% for accidents.
How to settle PIT and when to send the tax form to the tax office
Everyone who works in Poland, even non-Polish citizens, must pay private income tax (PIT) once a year, no matter his or her source of income. You will always file your PIT from the previous year, e.g. you will file 2019 taxes in 2020.
The document to settle your taxes is referred to as the PIT-11 form, and it confirms that your employer has paid the proper taxes. As such, it is usually your employer who gives you the PIT-11 form, and he or she is legally obligated to deliver the document by the end of February. It doesn’t matter how many days you worked in a year, even if it was only one, your employer still must send you the document either on paper or electronically. Your employer should also use the information based on your PIT-11 to complete his or her yearly tax form and send it to the tax office either electronically or in person. *The only exception is if your paycheck for the year equals less than PLN 200 before taxes. Then your employer just pays the 17% lump-sum tax to the tax office and skips issuing your PIT-11 form.
If you need assistance completing your PIT forms, you have options: You can find free online software easily, you can hire a private accounting firm to help you, or you can review the Ministry of Finance brochures (podatki.gov.pl).
You must submit your yearly tax form either by mail, electronically, or in person. The easiest and fastest way to submit the form, though, is electronically on the Internet. If you do it this way, then the tax office is required to send your tax rebate to you within 45 days of your submission. If you do it non-electronically, it takes 3 months.