Unlimited or limited tax liability? The provisions of the Law on Income Tax of Individualsób determine this obligation depending on whether a person working in Poland is a resident or non-resident. Who is a resident and who is a non-resident?
What is the difference between a resident and a non-resident?
Bestóly speaking, a resident is a person whoóra not only lives in Poland, but also considers the territory of this country as the center of his life and economic interests. This means that he or she is subject to taxation in Poland on all his or her earned incomeów, regardless of the country in which he or she earned the income. A non-resident, on the other hand, is a person who does not reside in Poland, and is therefore subject to limited tax liability. The non-resident's income tax applies only to incomeós earned on Polish territory. The non-resident is required to file a return on the amount of income and loss incurred by completing the PIT-37 form for the given tax year.
Changes in employment of foreignersóin 2022
This year there was a need for changes in the issue of employment of foreignersów. This was required by the situation related to the armed conflict in Ukraine. The amendment to the provisionsóof the Law and Ordinance on the Employment of Foreignersóon the modification of the rules for registering statements on the entrustment of work or granting work permits. Previously, the statement on entrustment of work was to be registered by the employer for 6 months within a 12-month period. Now it can do so for 24 months without waiting to register another one. As far as the work permit is concerned, the facilitation applies to employment under an employment contract, applications in these cases and statements are handled out of turn. Work permits are issued when the working hours will be no less than 1⁄4 full time.
Is a Ukrainian a tax resident?
Poland and Ukraine have signed a convention on the avoidance of doubleóion of taxation, whichós view is that if a person has a domicile both in Poland and Ukraine, the domicile should be taken to be the one with whichóhe has closer economic and personal ties. The place of residence translates into the determination of tax liability, i.e. where the person will settle PIT. If the employee does not make a statement to the employer about moving his center of interestós life to Poland, the employer must resolve the employee's legal situation and the state of his tax residence on his own. For the employer, it will be necessary to determine whether the employee stays in Poland for more than 183 days in a tax year, because as soon as this period of time is exceeded, his salary begins to be subject to the Polish tax system.
Employee from Ukraine and relief for the young
In the question of who must settle PIT, it is also necessary to mention Ukrainian citizens whoóve not exceeded the age of 26. - if they stay on the territory of Poland for more than 183 days in a tax year, they automatically obtain the status of tax resident of the Republic of Poland. Therefore, just like Polish citizens, they can benefit from the youth tax credit, which means that their income is taxed at a 0% PIT rate.