What is PIT? What is the PIT tax rate in Poland?

PIT is a direct tax collected from individuals (which in practice means every person from birth to death). It is collected from various sources of income, such as wages from employment, conducting non-agricultural business activities, rental income, or participation in investments. It is worth noting that this tax is paid on income, not revenue (what is the difference between income and revenue?).

The PIT rate for individuals who are taxed according to the progressive tax rate (which is the majority of taxpayers) was 17% for annual incomes below PLN 85,528 in 2021, and 32% for individuals earning above that. Of course, the 32% tax rate is only applied to the excess amount above the mentioned threshold. So, for example, if we earn a net income of PLN 100,000 after deducting costs in a given year, a tax of 19% will be calculated on the amount of PLN 85,528, and 32% on the amount of PLN 14,472. The payable tax can also be reduced using various tax reliefs and deduction methods.

PIT is also the name of the forms used by the tax office to settle the tax, such as PIT-11, which we receive from the employer, or PIT-37, which we usually fill out for the purpose of tax settlement. These two concepts (PIT as a tax and PIT as a form) should not be confused.


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