The tax system in Poland is based on three pillars:
• the Constitution of the Republic of Poland,
• internal tax regulations,
• EU tax regulations regarding Art. 93 of the Treaty Establishing the European Community.
Tax thresholds and tax-free allowance in Poland in the year 2017
Tax thresholds are percentage rates of income tax from individuals. Paying this tax is an obligation of all individuals who do business or work for another employer (in which case the employer pays the tax and reduces the wage by that amount).
The annual tax return forms
Designed for a taxpayer who submits a tax card. When using the method for the first time, one must submit two forms: PIT-16 and PIT-16A. PIT-16A is a declaration of the national health insurance contributions that have been paid and deducted from the tax card in each of the tax year’s months.
PIT11 - will soon be the deadline for submission
PIT 11 is crucial for the settlement of employee tax. This document contains information about the income of 2016 years and collected tax withholding.
Up until now (starting from July 1st, 2016) the JPK VAT was an obligation valid only for large entities. The obligation involves submitting a monthly JPKVAT file that contains a record of all purchases and sales of VAT.
Choosing your form of taxation
The choice of the form of taxation is a very important aspect as it affects the amount of the tax which will be needed to be paid in the future.