If you work on an employment contract or civil law contract (contract of mandate, contract for specific work), you must settle with the Tax Office by May 2, 2023, at the latest.
In the case of these forms of employment (employment contract, mandate contract, specific contract), revenues are obtained through the payer, and you should settle on the PIT-37 form.
Documents needed to settle the employment contract, mandate contract and work contract
If we work under a contract of employment or a contract of mandate/contract of specific work, the payer (workplace or Principal) collects the advance payment for personal income tax (PIT) on our behalf. PIT-11 is necessary for the taxpayer to be able to make the tax report. The employer/Principal informs you about The yearly income, tax-deductible costs, advances collected for income tax and the amount of social security and health insurance contributions on the PIT-11 form. They should hand it to you by the end of February 2023 at the latest.
What form should you use for PIT for an employment contract/assignment and a specific work contract?
If you work on an employment contract, mandate or specific work contract, you report to the Tax Office on the PIT-37 form. The easiest way to submit a report is to send a PIY via the Internet (online https://www.e-pity.pl/rozliczenie-pit-przez-urzad-skarbowy-w-wniosek/). The tax program will guide us step by step through the individual parts of the form, calculate and allow us to settle tax reliefs. You should report PIT-37 by May 2, 2023.
What reliefs and deductions apply in PIT-37?
Individuals who settle on the PIT-37 form can benefit from tax relief forms, such as co-settlement with their spouse or as a single parent raising a child. There is also a catalogue of tax reliefs. The most popular are:
- children relief (pro-family – prorodzinna),
- relief on the Internet,
- rehabilitation relief,
- medication relief,
- blood donors relief,
An additional form of reduction to PIT-37 is tax allowance. It depends on the amount of income in a given tax year.
People up to 26 years of age and PIT-37 settlement
For people up to 26 years of age, reduced tax rules apply. Persons employed on an employment contract or contract of the mandate are entirely exempt from paying tax if their annual income does not exceed the limit of PLN 85,528 and if they did not achieve income from other sources in the tax year.
Other persons to whom the reduced tax rules apply:
- Parents or persons raising four or more children – applies to the income of persons in large families;
- Working pensioners – this applies to pensioners who, despite reaching retirement age, continue to work
The groups mentioned above will benefit from the corresponding tax relief for revenues not exceeding PLN 85,528 on an annual income scale.