Polish Tax: Part 1: Personal Income Tax rate in Poland
to calculate the Personal Income Tax, we should calculate the total taxable income from different sources of income and subtract the tax free rate from it. as it will be discussed in the later sessions the taxable income can be from cumulative taxable sources.
The taxes from Dividends, Interest, Sales of shares, Awards and sales of real estate are taxed separately and are not among the cumulative taxes.
and the amount of the tax to be paid is calculated as below:
Example: How much is the tax of a person who has monthly income of 10,000 PLN without the calculation of the ZUS and healthcare?
Total Payable= (Taxable Income- Tax payment)- Taxfree rate= >
Taxable Income= 12* 10,000= 120,000 PLN
Tax free rate= 525–525*(120,000–85528)/41,472=88.61
Tax payment= 17%*85528+32%*(120,000–85,528)=14539+11031=25570
Total Paybale= 120,000–25570–88.61=94,343
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There are some considerations regarding the tax:
- In case of the made in kind generally the market value is applied.
- in case of services performed by the employer the cost considered