photo. www.freepik.com The entry into force of the new provisions of 1 January 2021 means that the allowance deduction limit applies to revenue generated since the beginning of 2021. The limit will therefore apply only at the annual clearance stage for 2021, i.e. in 2022. Revenue generated in 2020 shall be accounted for using full abolition relief, in accordance with the rules in force until the end of 2020.
On 1 January 2021, the provisions amending the rules on the application of the Abolition Relief provided for in Article 27g of the Personal Income Tax Act (PIT Act) entered into force. The change involves the introduction of a deduction limit for this relief up to PLN 1360.
The deduction limit will not cover certain income generated abroad outside the land territory of the States.
The entry into force of the new provisions means that:
the allowance deduction limit applies to revenue generated from 1 January 2021 and will therefore apply only at the annual clearance stage for 2021 (in annual tax returns submitted by the end of April 2022),
The revenue generated in 2020 shall be accounted for using full abolition relief, in accordance with the rules applicable until the end of 2020.