Project Polish Deal it is noted that ‘a tax-free amount of 30,000 PLN will be used already in the calculation of the advance tax by deducting an amount from the tax of 1/12 tax reduction amount (1/12 of the amount 5,100 PLN)”. Please specify in which case the advances will be calculated with a reduction of the amount constituting 1/12 the tax reduction amount.
Answer
I believe that advances may not be collected by the payer when the taxpayer knows that under the work/order contracts it will not achieve in the tax year revenues exceeding 30,000 PLN and does not generate any other income. However, the reservation of non-remuneration does not apply to income which the taxpayer gains from that payer if
- advances shall be calculated taking into account the deduction in question under Article 32(3) PIT Act (job contract with this payer)
or
- advances are paid on the basis of Article 44 Paragraph of the PIT Act (in connection with the income from economic activities achieved by the taxpayer on that payer).
If the above conditions apply, the taxable person must make a declaration to the payer so that he does not charge advances. Otherwise, the payer will collect such an advance.
Illustrationally, it is possible not to collect advances from Article 41(1c) The PIT Act will apply only to the payer who is the sole ‘employer’ of the taxpayer and the taxpayer will make a statement to him. A taxpayer for such an ‘employer’ may:
- implement contract-based actions,
- implement actions based on a work contract,
- provide work,
- provide services related to the economic activity of the taxpayer (to be ‘employed’ under contract B2B) or to carry out other activities which fall within the course of the economic activity of that taxpayer.
You won't need to collect advances if conditions are met with Article 41(1c) The PIT Act, which is when:
the taxpayer knows that he will not obtain income in the tax year higher than 30,000 PLN,
the taxpayer does not further achieve other income (we do not take into account income from the same payer that meets the conditions of Article 32(3) PIT and income from the same payer obtained in connection with the economic activity of the taxable person who pays advances on the basis of Article 44(3) PIT Act).