The basic criterion for establishing a tax obligation in Poland is the place of residence of the taxpayer. For a person residing in the territory of the Republic of Poland, according to Article 3(1a) Act on 26 July 1991 the PIT is considered to be a natural person who: 1) has in the territory of the Republic of Poland a centre of personal or economic interests (the centre of life interests) or 2) stays in the territory of the Republic of Poland longer than 183 days in the tax year.
This provision applies taking into account the relevant double taxation agreement to which Poland is party (Article 4a PIT). Therefore, we can distinguish between resident and non-resident in Poland.
If a Ukrainian citizen resides in Poland for less or longer than 183 days of the year, but will present a residence certificate confirming that his life centre is in Ukraine, his income will be taxed only in Ukraine. Confirms that.
Article 14(1) Convention between the Government of the Republic of Poland and the Government of Ukraine on the avoidance of double taxation and the prevention of tax evasion in the field of income and property taxes.
Polish employer will have to prepare for Ukrainian employee personal information according to the established pattern (IFT-1/IFT-1R) and send them in due time to the relevant tax office (i.e. to the office competent to serve foreign nationals) and to the citizen of Ukraine.
In the case of residents, tax collection is generally made by collecting an advance on the tax. In contrast, in the case of non-residents, the tax is collected by the payer/person paying the flat-rate income tax in the amount of 20% revenue. This also affects the submission of annual declarations by the payer for collecting advance payments on income tax. In the case of a resident, the payer shall make declarations PIT-11, and for non-residents declarations IFT-1R.
Note that:
for many types of contracts, it is possible to issue both lump sums IFT-1R, and accounted for under general rules PIT-11,
PIT-11 – where a foreign person does not have a PESEL or NIP number, the number given for tax purposes by the competent authorities of the country of residence must be used in the documents and, if such a person does not have such number, the number of the document stating the identity of the taxable person obtained in that country (in principle, the passport).
In view of the specific situation, a public discussion on potential opportunities has been undertaken to facilitate the work of those who were forced to leave their country. The first discussion plan was the form of employment under civil law contracts. We will see what results will come from the regulations of the Act, while today the idea of excluding the need for citizens of Ukraine to have a residence certificate was notified, as this will facilitate
The Association of Accountants in Poland made a petition to the state authorities about tax exemption of income income from benefits in kind or money of people who were in Poland due to the war. It is also worth mentioning that Ukrainian citizens with tax residences in Poland are entitled to the tax concessions provided for in the Act on the same terms as Polish citizens, among other things, can benefit from the so-called zero PIT for persons to 26. years of age.
Written by Darya Bannaya
Younger tax consultant. Graduate of Law at the Faculty of Law and Administration of the University of Warsaw, graduate of Global Business, Finance and Management in Warsaw School of Economics. Winner of the Ministry of Finance competition “Tax of Leaders” 7. edition. Conducting trainings and conferences for foreigners in tax aspects of conducting and establishing business in Poland.
He specializes in tax law, advising clients on current matters relating primarily to income taxes.
Author and co-author of a tax law publication.