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Generic Tax Name Personal income tax
Tax name in the national language Podatek dochodowy od osób fizycznych
Tax name in English Personal income tax
Member State PL-Poland
Tax in force since 1992/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Act of 26 July 1991 on personal income tax (consolidated text: Journal of Laws of 2012 item 361 with subsequent amendments).

Act of 20 November 1998 on lump-sum income tax (Journal of Laws, No. 144, item 930 with subsequent amendments) in force since 1999/01/01.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

49.52% of the revenues from PIT (general terms) is a share of the local authorities.

All revenue from “tax card” are the local authorities revenue.

All revenue from lump-sum income tax (except from “tax card”) are the state budget revenue.

 
Geographical Scope

Territory of Poland.

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Residents are taxed on their worldwide income, non-residents on their Polish source income.


Employment incomes of married couples are Taxed jointly
Taxed separately
Comments

Married couples, who co-own property and remain married during the whole tax year, may, at request, be taxed jointly (the tax is assessed on behalf of both spouses in the amount equal to double tax calculated for half of the joint taxable incomes of the spouses, provided that the sum of such incomes shall not include incomes (revenues) liable to flat tax rate of 19% or a lump sum taxation or to tonnage tax). The same rules apply to a person who brings up children alone (single parent).



Comments
 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Categories of sources of revenue are:

  • employment contract;
  • pension
  • independent personal activity;
  • non-agricultural business activity;
  • special branches of agricultural production;
  • lease, sublease, tenancy, subtenancy and other contracts of a similar character of property of any kind;
  • money capitals and property rights (e.g. dividends, interests, royalties);
  • transfer against consideration of immovable property;
  • other sources (e.g. scholarships)

Tax base is determined separately for each category of revenue. Generally tax base is determined as income (revenue minus tax costs) after deductions (e.g. obligatory social security contributions). It is also possible to deduct some expenses from tax (e.g. obligatory health contributions).

Losses from one category of revenue cannot be covered by income from other category. Losses can be deducted from the income earned from the same sources during the following 5 tax years.


Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Residents are taxed on their worldwide income, non-residents on their Polish source income.


Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments

Benefits in kind (e.g.: a company car or a telephone) received by an employee are not taxable if they are used exclusively for business. Some of benefits in kind are tax free considering their financial source (e.g. cultural cheques financed from employer’s social fund).



Comments
 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Interest on mortgages – this tax relief was in force till 31st December 2006. On the basis of acquired rights taxpayers can benefit from interest tax relief until the end of  2027. 

 Deductions from income:

  • obligatory social security contributions,
  • contribution to individual pension accounts,
  • expenses for the purpose of rehabilitation incurred by a taxpayer who is a disabled person, or a taxpayer who supports the disabled,
  • refunds, made in a given tax year, of unduly collected performances which have previously increased the taxable income, in amounts including collected income tax, if said refunds have not been yet deducted by the tax remitter,
  • the expenses of using Internet but not more than 760 PLN; this deduction is entitled to the taxpayer exclusively through the following 2 tax years, if the taxpayer did not benefit from this deduction in the period preceding these years;
  • donation given (not more than 6% of taxpayer's income):
    • to NGOs for public benefit purposes,
    • for religious purposes,
    • cash equivalent for the voluntary blood donators,
  • expenditures incurred for the acquisition of new technology.

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to: 556.02  EUR/National currency  or  %  of tax base
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Deduction from tax:

  • obligatory health contributions (not more than 7.75% of calculation base),
  • child relief:
    • monthly 92.67 PLN for the first, if
      • the income received by parents (being married) or by single parents does not exceeded in the tax year the amount of 112,000 PLN,
      • the income received by a parent (not being married) does not exceeded in the tax year the amount of 56,000 PLN.
      • The criterion of the amount of received income during the tax year shall not apply when there is more than one child in the family.
    • monthly 92.67 PLN for the second child,
    • monthly 166.67 PLN for the third child,
    • monthly 225 PLN for the fourth and every next child.

In the case of low income group there is a possibility to profit from the tax relief. Taxpayers, whose tax due is lower than total amount of child relief, can receive the difference. However it is limited up to the total amount of social security and health contributions paid by taxpayer, which are subject to tax deduction.

  • for residents: amount equivalent to difference between the amount of tax calculated by using credit method and the amount of tax calculated by the exemption method in case of deriving income from abroad (e.g. remuneration).

Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments


Comments

Inheritance is a subject to special tax therefore it is not subject to income tax.

Income from transfer against consideration of things, which were acquired longer than 6 months before.

Tax exemptions:

  • social nature exemptions (e.g. family benefits, alimony),
  • compensation nature (e.g. pension granted according to civil law for losing ability to work),
  • employee nature (e.g. allowance for business travel), 
  • education nature (e.g. scholarships, improvement of professional skills).
 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  3,091.00  EUR/Natcur
To  85,528.00  EUR/Natcur
Rate: 18.00 %
Bracket 2 From  85,528.00  EUR/Natcur
To   EUR/Natcur
Rate: 32.00 %
Comments

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends 19.0 %
Interests from government bonds 19.0 %
Interests from corporate bonds 19.0 %
Interests from special saving accounts 19.0 %
Interests from deposits 19.0 %
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards 10.0 %
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities 10.0 %
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 19.00 %
Final Creditable
Interests from governments bonds: 19.00 %
Final Creditable
Interests from corporate bonds: 19.00 %
Final Creditable
Interests from special saving accounts: 19.00 %
Final Creditable
Interests from deposits: 19.00 %
Final Creditable
Comments


Comments

The incomes (revenues) on:

  • interest or other revenues earned from cash means deposited on the taxpayer's bank accounts or from other forms of saving, keeping or investing these means operated by an entity entitled thereto under separate provisions, with the exception of cash means deposited in connection with the economic activity carried on - are subject to 19% tax on the earned revenue (final tax);
  • interest on loans, except for granting loans within the scope of one's economic activity, from interest or discount on securities - are subject to 19% tax on the earned revenue (final tax);
  • dividends and other revenues from shares in legal persons' profits - are subject to 19% tax on the earned revenue (final tax);
  • transfer against consideration of immovable property - are subject to 19% tax on the income;
  • prizes won in competitions, games and mutual bets or awards connected with premium sale - are subject to 10% on the award or prize (final tax);
  • incomes earned from unrevealed sources of revenues or not justified by the revealed sources - are subject to 75% tax on the income.

Abovementioned incomes can not be combined with other category of incomes.

 
Tax due date

Tax is payable annually on the basis of tax returns, not later than on 30th April of the following year.

Generally on income earned from money capitals tax is withheld at source at the day of payment.

Monthly tax advanced payments are paid on income from employment contract, independent personal activity, lease and tenancy, not later than 20th day of the following month.

Tax can be paid in quarterly advance payments on non-agricultural business activity income (small taxpayers, taxpayers commencing business activity or taxpayers taxed according to the lump-sum taxation Act).

The advance payments are deductible against final income tax liability.

 
Tax collector

Due tax (or advance payment) is to be paid to the competent tax authority (local tax office) by taxpayer or by tax remitter.

Tax remitters are obliged to calculate and collect throughout the year income tax advance payments, for example, if remitter is:

  • employer - in case of income receive from employment,
  • the social insurance institution (ZUS and KRUS) - in case of old-age, disability or survivors pensions or other kinds of benefit from social insurance.

Tax remitters collect throughout the year the lump sum tax, for example banks - in case of interest or other revenues earned from cash means deposited on the taxpayer's bank accounts.

Taxpayers who derive an income from:

  • an economic activity,
  • employment relationship, said income received from abroad,
  • retirement and other pensions received from abroad without the intermediation of remitter,
  • lease or tenancy

are obliged to pay monthly tax advance payments for their income tax.

The tax advance payments for the period from January to November shall be remitted by the 20th day of every month for the preceding month. The advance payment for December shall be remitted until the 20th January following the end of tax year (apply to income derived from an economic activity and lease or tenancy).

The tax advance payments for the period from January to November shall be remitted by the 20th day of every month for the preceding month. The advance payment for December shall be remitted in date of submission of a tax return on the amount of income earned (loss incurred) during the tax year (apply to income derived from employment relationship, said income received from abroad and retirement and other pensions received from abroad without the intermediation of remitter).

The tax year is from 1st January to 31st December.

 
Special features

I. Business activity income.

Income is taxed according to the progressive tax scale. Taxpayers can also choose between taxation according to general terms (progressive tax scale), flat tax rate of 19% of income, lump-sum taxation or “tax card”. Submission of written declaration on the choice to local tax office is obligatory.

The lump-sum taxation may be chosen by a taxpayer who in the previous year raised revenue from economic activity at the amount not exceeding 150,000 €, or when - in the case of partnership - the revenue raised by the all partners from such an activity did not exceed 150,000 €.

The lump-sum tax rates on registered revenues amount to:

  • 20% for revenue raised by liberal professions,
  • 17% for revenue raised, inter alia, from rendering the following services: car rent, hotels, agency in wholesale trade,
  • 8.5% on revenue gained, inter alia, from service activities, including the sale of drinks with the volume of alcohol above 1.5%, from contracts of lease, sublease, tenancy or subtenancy or other contracts of similar nature,
  • 5.5% on income gained, inter alia, from production and construction activities,
  • 3.0% on income gained, inter alia,  from service activities in the scope of trade and catering, with the exception of income on the sale of drinks with the volume of alcohol above 1.5%.

Tax base is revenue without deduction of costs.

Rates of “tax card” are specified in amount in tax office decision and depend on:

  • the form and scope of the activity performed,
  • the number of employees,
  • the number of inhabitants of the place where the economic activity is performed.

II. Married couples and single parent.

Married couples may, at request, be taxed jointly (the tax is assessed on behalf of both spouses in the amount equal to double the tax calculated for half of the joint taxable incomes of the spouses, provided that the sum of such incomes shall not include incomes (revenues) liable to flat tax rate of 19% or a lump sum taxation or to tonnage tax). The same rules apply to a single parent.

III. Non-residents

Non-residents are taxed only on their Polish source income (lump sum taxation at rate of 20% or 10%, depending on category of income, of revenue). They can however avail themselves of the option of choosing to be treated as a resident taxpayer. Then the general terms (progressive tax scale) also apply to them.

Following conditions must be fulfilled in such case:

  • taxpayer must be tax resident of EEA country or of the Switzerland,
  • prove his residency by certificate of residency, and
  • Poland, according to DTA or other international agreement, has a possibility to receive tax information from tax authorities of that country.

IV. Non-resident married couples may avail themselves of the option of choosing to be treated as resident married couples. Then preferential taxation as described in point II. also apply to them.

 Following conditions must be fulfilled in such case:

  • one of spouse (in such case another one must be Polish tax resident) or both of them must be tax resident of EEA country or of the Switzerland,
  • prove their residency by certificate of residency,
  • earn at least 75% of their worldwide income is subject to tax in Poland, and
  • Poland, according to DTA or other international agreement, has a possibility to receive tax information from tax authorities of that country.

The same rules apply to non-resident person solely bringing up a child.

All taxpayers may, in their annual tax return, indicate a public benefit organization, on benefit of which tax office will transfer 1% of his tax due.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51m (d51a + d51c1) + d51da

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 73,003.00 PLN 4.48
2011 68,160.00 PLN 4.35
2010 63,177.00 PLN 4.37
2009 62,417.00 PLN 4.58
2008 68,234.00 PLN 5.34
2007 61,647.00 PLN 5.20
2006 48,724.90 PLN 4.57
2005 38,767.90 PLN 3.94
2004 33,759.90 PLN 3.64
2003 35,629.80 PLN 4.21
2002 34,788.10 PLN 4.29
2001 35,027.90 PLN 4.49
2000 32,834.00 PLN 4.39

Comments