PIT

Due to the ongoing war in their homeland, many Ukrainian employers have decided to post their employees to work in Poland. However, this move has specific implications in terms of personal income tax and social insurance. What must a Ukrainian entrepreneur remember while hiring employees residing in Poland?

As we have already discussed it in our earlier articles, in the wake of the introduction of the coronavirus epidemic state in 2020, provisions of the Act of 2 March 2020 on Special Solutions Related to Preventing, Counteracting and Combating COVID-19, Other Infectious Diseases and Emergency Situations Caused by Them (known as the Special Act) came into force. The aforementioned regulations provide for the possibility of an employer ordering an employee to work from home. This possibility covers only the period of an epidemic state, state of epidemic emergency and 3 months after there are revoked. What should be noted, however, is that remote work can be performed after the said periods, as well, if only pursuant to the provisions of the Labour Code (under what is known as telework).

On Monday, 26 July, a draft act amending the PIT Act, CIT Act and certain other acts was published, being a part of what is known as the “Polish Deal”. It rolls out many taxation changes, including more lenient conditions for applying the “Estonian CIT”.

On 17 January 2017, the Supreme Administrative Court issued a judgement (file ref. No. Act II FSK 3712/14) upholding the position of the Administrative Court in Gdansk dated 15 July 2014 (file ref. No. I SA/Gd 589/14), under which liquidated damages awarded to a company's CEO are subject to personal income tax as income from activities performed personally.  

On 12 December 2016, the judgement of the Supreme Administrative Court (case No. I FSK 742/15) was published setting out the tax consequences of the tax on goods and services for the provision of additional services by the CEO of the company to that company.  

In today's Tax Alert we would like to inform you about the effects in income tax that may be caused by the introduction of one's own assets into a partnership, e.g. a registered or limited partnership. The position of the Minister of Finance on this issue has changed recently.  

Personal Income Tax withholders (PIT) are advised to take note of the new PIT-11 form that is now applicable to income obtained in 2015. The PIT-11 form is an overview of obtained income and advance payments of income tax, and has been recently amended in the Regulation of the Minister of Finance as of 17th November 2014.

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