Personal Taxation

Unlimited tax obligation in Poland

Individuals with their place of residence in Poland are taxed on their total income, regardless of where the income is earned (unlimited tax obligation in Poland). Individuals who do not have a place of residence in Poland are taxed solely on income earned in Poland (limited tax obligation in Poland).

An individual with a place of residence in the Republic of Poland is a person who:

  • is physically present in the Republic of Poland for more than 183 days during a tax year, or
  • has a centre of personal or economic interests in the Republic of Poland (centre of vital interests).

The above rules are applied taking into account the provisions of relevant tax treaties. Therefore, even if, in the light of Poland’s national legislation, a person passes the residence test for Poland, the appropriate criteria contained in an international treaty must be applied to determine what country is that person’s actual place of residence for tax purposes.

Sources of revenue subject to PIT:

  • a labour-based relationship and an employment relationship, including a cooperative employment relationship, retirement or disability pension;
  • personal services,
  • non-agricultural business activity;
  • special departments of agricultural production;
  • lease, sublease, tenancy, subtenancy and other similar agreements;
  • monetary capital and property rights;
  • paid disposal of, among other things, real property or parts thereof and real property interests, movables;
  • activity conducted through controlled foreign company (CFC);
  • other sources.

The Personal Income Tax Act does not apply to revenue subject to the provisions on tax on inheritance and donations, actions that cannot be the subject of a legally binding agreement, or revenue subject to tonnage tax.

More Information here.

We advise you also to check more general information about taxes in Poland.

Leave a Reply