Are the taxpayers making annual declarations PIT-28 either PIT-28S Can they be concerned? Eventually soon, because at the end of February, they are obliged to submit these forms to the IRS, right? Well, no. For thanks to the changes introduced by the so-called Polish Deal 2.0.[1], the above period has been extended to 30 April the year following the tax year for which the declaration is made.
This year, because 30 April is on Sunday and 1 May is a public holiday, this obligation can be fulfilled to 2 May. This is undoubtedly the facilitation and harmonisation of the deadline for submitting with other annual declarations on personal income tax, inter alia. PIT-37 is PIT-38.
In addition to the above, it is also worth discussing what information the forms should contain PIT-28 and PIT-28S and who is obliged to submit them.
PIT-28 – who submits and what should take into account
PIT-28 This is a statement of the amount of revenue received, the amount of deductions made and the lump sum due on recorded revenue. It is intended for natural persons with the following flat income:
1) by conducting non-agricultural business activities,
- revenue in question under Article 10(1)(6) Personal Income Tax Act[2] - i.e. rent, sub-rental, lease, sub-rental and other similar contracts, including leases, sub-rentals of special agricultural production units and of agricultural holdings or their components for non-agricultural purposes or for the operation of special agricultural production departments, with the exception of economic assets,
- revenue from the sale in question under Article 20(1c) Personal Income Tax Act – i.e. revenue from the sale of non-industrially processed plant and animal products, with the exception of processed plant and animal products obtained under special agricultural production departments and excise duty products.
Information about PIT-28S
In turn the form PIT-28S is intended for enterprises in decline with flat-rate revenues on recorded revenue. It shall be filed in the case of tax settlements of the company after the death of the trader benefiting from taxation on a flat-rate basis on recorded revenue and may be filed by the manager of the succeeding undertaking or by a person performing conservative activities for the deceased entrepreneur (until a succession manager is established).
Importantly, the above forms cannot be filed together with the spouse or accounted for as a single parent because the form of flat taxation excludes such possibilities. The only exception is that the flat rate is taxed on rental and private lease or similar contracts.
It's worth moving on. one question – what is the tax base for lump sum taxation on recorded revenue? As can be seen – in this case the tax base is income and therefore there is no possibility to settle the cost of obtaining revenue. However, once the relevant conditions of the flat-rate income tax Act are met on certain income generated by individuals, tax deductions and reductions, such as:
- contributions to compulsory social and health insurance,
- loss of business activity,
- donations to, among others, public benefit, blood donation, countering COVID-19,
- reductions in IKZE payments[3].
It is worth paying attention to changes in the law, including (and perhaps especially) those concerning the time limits for taxpayers' obligations. This is also important because the law called Polish Deal 3.0. As practice suggests, tax regulations in our country can be amended several times a year.
Without doubt, these changes can seriously affect the situation of taxpayers, as some of them can benefit from taxation or unconsciously reduce their own earnings without tax planning. If you have questions about individual issues of tax law, please contact us Russell Bedford Poland Sp. z o.o.
[1] Act dated 9 June 2022 amending the Income Tax Act on individuals and certain other laws, Journal of Laws of 2022, item 1265.
[2] Act dated 26 July 1991 on income tax on individuals (i.e. Journal of Laws of 2021, item 1128, as amended).
[3] Individual Pension Insurance Account.
Author: Michał Zdanowski,
Project manager.
Graduate of the Faculty of Law and Administration of the University of Warsaw, Graduate of the Postgraduate Tax and Tax Law Studies of the University of Warsaw, Graduate of the Postgraduate Accounting and Finance Studies of the Warsaw School of Economics. Since September 2013 is associated with the law firm Russell Bedford Poland. Specializes in transfer pricing. Together with an experienced team, he supports leading companies in fulfilling tax obligations in terms of transfer prices.