Form PIT-2, which introduced confusion both among taxpayers and payers at the beginning 2022, once again reveals itself in a new installment from 1 January 2023. PIT-2 contains statements and requests from the taxpayer, which, consequently, allow the payer to reduce the advance payments on income tax and thus the taxpayer may have a higher remuneration. Does that always pay off? Or also in the case of contract order and contract work?
Amendment in force since 2023 it is possible to submit a form not only by employees, but also, for example, contractors, contractors of work contracts, members of the boards of legal persons. Tax payers are now entitled to a commitment even third payers to take account of the tax reduction amount when calculating the advance due on income tax. However, the amount may not exceed 300 PLN per month, which represents 1/12 the amount of tax reduction resulting from the tax-free amount of 30,000 PLN.
Several sources of income, several PIT-2
For several sources of income, it is also possible to submit a form to several payers. The taxpayer may request that the advance be reduced by an amount representing 1/24 tax reduction amount (150 PLN) be 1/36 tax reduction amount (100 PLN).
As indicated by the Ministry of Finance in the explanations from 30 December 2022: „Solution by quota allocation 300 PLN for parts it shall be addressed in particular to persons who at the same time receive revenue from more than one the payer, where none of them receive revenue for which the tax base exceeds 2,500 PLN A month.
By dividing the amount of the reduction, they can benefit more from the free amount during the year.
A fairly common situation in Polish economic realities is having more than one sources of income by Polish taxpayers.
The most common "duet" is a contract of employment while providing services under a contract of order. What effect does this have on reducing the amount of advance payments? Well, the taxpayer has a choice in principle three options:
- • Submission of form PIT-2 only to the employer requesting a reduction of the advance by 1/12 tax reduction amount (300 PLN).
- • Submission of form PIT-2 only to the payer requesting a reduction of the advance by 1/12 tax reduction amount (300 PLN).
- • Submission PIT-2 both at the employer and the payer asking to reduce the advance by 1/24 tax reduction amount (150 PLN).
This alternative is neutral for the taxable person, since in practice it comes down to the consequences that the taxable person receives remuneration from a contract of employment or a contract of employment 300 PLN higher, whereas remuneration In the second The source of income remains unchanged; or from each source it receives more by 150 PLN.
It is worth noting that taxpayers are themselves responsible for the information submitted on the form, that no payer can verify to how many more entities have been requested to reduce the advance. In such a case, if the taxpayer gives false data, this may consequently lead to a tax underpayment which will be disclosed when annual income is settled.
PIT-2 - simulation of remuneration
How will the change in the remuneration received be done if the taxpayer submits a form to both the employer and the payer declaring to each of them the right to deduct the advance by 150 PLN? Below is an analysis of the hypothetical situation.
Example: Ms. Alicia is employed under an employment contract (at her place of residence), she also has another source of income in the form of an order contract. The employment contract receives a salary of 4,000 PLN gross and for services provided under the contract, remuneration is due at the amount of 2,500 PLN gross.
Employment contract (4,000 PLN)
Contract of order (2,500 PLN)
Amount of social security contributions
548.4 PLN
Consequence of insurance titles — 0 PLN
Health premium
310.64 PLN
225 PLN
Cost of obtaining income
250 PLN
500 PLN (assuming 20%)
Advance payment on tax
384 PLN
240 PLN
Advance payment after deposit PIT-2 (minus 150 PLN advance from two sources of income)
234 PLN
90 PLN
An example of remuneration calculation shows that using the possibility to submit a form PIT-2 The taxpayer gets more “on hand”. Economic events in 2022 made many taxpayers aware of how quickly money can lose its purchasing power. Therefore, it is definitely worth to provide the payer with information about the reduction in the amount of advance collected, so as not to wait a year and a half to recover the money in the form of a transfer of excess income tax.
Article prepared for Dziennik Gazeta Prawna.
Darya Bannaya, tax consultant At Russell Bedford Poland. Specializes in tax law, advising clients on current matters relating primarily to income taxes