Tax Benefits in Poland: Who Can Obtain Them?
Since August 1, 2019, the Young Tax Relief Act ("Ulga dla młodych") has been in effect, allowing individuals under the age of 26 to be exempt from personal income tax (PIT). These benefits apply to those working under employment contracts or specific task contracts, but there are restrictions—the annual income must not exceed 85,528 Polish zlotys. If you earn more, the benefits do not apply.
The exemption does not cover all forms of income. For example, young individuals working under a contract for specific tasks (umowa o dzieło) or engaging in entrepreneurial activities are required to pay taxes in full. This means if you are a student or a young professional earning income from these types of contracts, you will not be eligible for this exemption.
To benefit from the tax relief, it is important to correctly declare your income and ensure that your annual earnings do not exceed the specified amount. This may include providing relevant documents to your employer to confirm your status as a young individual. Additionally, it might be necessary to consult with a professional for more detailed guidance on the requirements.
It's important to note that obtaining tax relief can positively impact your credit rating. This can be beneficial for young people planning to buy a home or secure a loan in the future. A stable income and reduced tax burden can enhance your financial reliability in the eyes of lenders.
Conditions for Obtaining Tax Benefits
- Age under 26.
- Annual income not exceeding 85,528 PLN.
- Employment contract or specific task contract.
Types of Income Not Eligible for Exemption
- Income from contracts for specific tasks (umowa o dzieło).
- Income from entrepreneurial activities.
- Other types of income subject to taxation.
Financial Stability. Participating in the tax relief program can help young individuals ensure financial stability at the beginning of their careers, allowing them to focus on developing their professional skills.
Budget Optimization. Thanks to the tax exemption, young people can save money that can be used for further development, investing in education, or starting their own business.
Legal Consultations. Obtaining professional advice can help avoid issues with tax authorities and properly prepare all necessary documents, which is critically important during the adjustment to new rules.
If you have questions or need a consultation, contact the Consultant legal service at the provided phone number or link in the profile. We are ready to help you find the optimal solution for your situation and provide all necessary information so you can take advantage of the tax benefits.
Do not hesitate to seek legal help. You can contact our experts for advice at the following numbers: Ukraine: +380735349850, Great Britain: +447418377298, Poland: +48799362716, USA: +16469348519.
Frequently Asked Questions
Question
What documents are required to obtain tax benefits?
Answer
To receive the benefits, you need to provide an employment contract or a specific task contract, as well as proof of income.
Question
Can I receive tax benefits if I work under umowa o dzieło?
Answer
Unfortunately, the exemption does not apply to income earned under this form of contract.
Question
If I exceed the income limit, will I lose the benefits?
Answer
Yes, if your annual income exceeds 85,528 PLN, you will lose your eligibility for tax benefits.
Question
What should I do if I'm not sure whether I can obtain the benefits?
Answer
We recommend seeking advice from a professional lawyer who can help you assess your situation and provide recommendations.
Tax benefits in Poland are an important element of supporting young professionals in the labor market. Understanding the conditions and requirements will allow you to take advantage of these benefits and save on taxes. If you have questions, do not hesitate to consult professionals for assistance.
