Tax FAQ. How to settle relief for young people?

I wanted to talk to you about the so-called "youthless PIT". Does this mean that individuals to 26 years of age whose annual income for 2020 does not exceed 85,258 PLN they will not have to submit a tax return at all, or they are obliged to disclose amounts released under the youth relief in pit 37?

Dear Reader,

so-called relief for young people you ask for is intended for those who have not completed 26. years of age and income from business relationship, employment relationship, overlay work, cooperative employment relationship, contract contracts and – from 1 January 2021 – for the completion of graduate and pupil training. This reduction is subject to revenue up to 85,528 PLN in a given tax year.

Turning to the question raised in question, according to the tax explanations of 14 April 2020 on a new preference for personal income tax for young persons published on the website of the Ministry of Finance, if the taxpayer only achieves revenue covered entirely by the concession for young people, this does not constitute an obligation to make a tax return[1].

In order to make an obligation to make a tax return, there must be additional circumstances, also mentioned in the above mentioned explanations. These are, for example, the achievement of additional taxable revenues according to Article 27 Personal Income Tax Act, or seeking reimbursement of overpaid tax.

To sum up, if you only generate revenue subject to the so-called youth relief and there is no other situation that would involve the submission of a tax return, you are not obliged to submit such a tax return.

If you have additional questions or need help with tax matters, please contact us.