How does tax law relate to the income of foreigners from sources other than employment contracts? These are called Activities performed personally on the territory of Poland Revenues from activities performed in person are, among others, revenues:
– received by persons belonging to the management boards, supervisory boards, commissions or other bodies constituting legal persons (Article 13 (7) of the PDOF Act),
– for the performance of services under a contract – an order or a contract for specific work,
– obtained based on business management contracts, managerial contracts or contracts of a similar nature (art. 13 points 9 of the Act PDOF).
Tax for non-residents
In a situation where the foreigner does not live in Poland, the revenues from activities performed personally (i.e. e.g. from the order contract) are taxed in the form of a lump sum in the amount of 20% of the income, under art. 29 sec. 1.
The above principle of taxation shall be applied taking into account double taxation agreements to which Poland is a party.
The application of the tax rate resulting from the relevant agreement on the avoidance of double taxation or the failure to collect tax following this agreement is possible only if you document your place of residence outside Poland with a residence certificate. Such a certificate will be issued to you by the tax office of the place of residence. It must be delivered to the employer.
If a foreigner has been considered a person residing in Poland and has provided the payer with a residence certificate, then the payer (employer) does not determine the Polish tax residence and collects a flat-rate income tax on the terms set out in art. 41 clause 9 of the Act.
By the end of February (or at any time upon your written request), the employer must send you personal tax information for non-residents of IFT-1/IFT1R.