Tax explanations dated 29 April 2021 concerning rules on the establishment of residence for tax purposes (tax residence) of natural persons in Poland in accordance with Article 3(1a) Act dated 26 July 1991 on personal income tax[1] (hereinafter: PIT Act) and the scope of the tax obligation of natural persons in question under Article 3(1) and 2a of the PIT Act.
Which tax provisions relate to clarification and what is the purpose of their issuance
The PIT Act defines criteria for establishing residence for tax purposes in Poland under Article 3(1a). Holding of a tax residence in Poland is related to the obligation to settle revenue in Poland on the basis of the unlimited tax obligation in question under Article 3(1) PIT Act.
However, the absence of a tax residence in Poland means being subject to a limited tax obligation in question under Article 3(2a) PIT Act. The purpose of the explanations is to present how individuals in Poland properly fulfil their tax obligations.
Since the tax residence is not of a declarative nature but is linked to an assessment of the whole facts and circumstances, it is important to provide written explanations of the rules in this respect.
What is the basis and legal power of the explanations
Explanations are general explanations of tax law and are issued on the basis of Article 14a(1)(2) Act dated 29 August 1997 – Tax Ordinance[2] (Next: Tax Ordinance). According to Article 14n(4)(1) Tax Ordinance the taxpayer’s application to tax clarifications during the tax period results in the protection provided for in that period. Under Article 14k-14m This bill. Compliance with these explanations will therefore result in the protection provided for by the tax rules.
Explanations in pdf can be downloaded below.