Polish Taxation:Part 2: Exemptions in PIT: Calc. 1–4
Exempt revenues from taxation:
- business trip: daily 30 PLN for 12 hours of work. if the work duration is less than 12 and more than 8 hr, it will be 50% of this.
- Overnight Accommodation allowance: each night between 9 pm to 7 am:45 PLN
- Separation Allowance (temporarily moved by the company to another location and the payment is equal to the allowance for business trip)
- Relocation: in case of relocation up to 200% of salary can be exempted from tax, if they are paid for legal and state agents fee, surveys, temporary accomodotion, transport of property and interest on bridging loan
- other accommodation benefits: 500 pln per month
- Uniforms: not suits
- Hygiene and safety: cost of laundering the work clothes
- Food and beverage: the copoun that company pays for meal and beverage
- own tools and material
- employment termination
- a retired or disabled employee: upto 3000 PLN received from the trade unions or amount paid by employer IKR for the death of the employee to his family
- getting to work by employer bus
- other benefits: (one-off gifts: like present for taxpayers children or benefit received for daycare of child)
Example: marek is employed in warsaw but for business purposes spent 5 days and4 nights in april in gdansk. his reported expenses for this trip were:
- hotel bill PLN 1000 (three nights)
- Train Ticket totaling 350 PLN
- restaurant bill 100 PLN
- his monthly wage is 6000 PLN.
Marek's employer paid him 2000 PLN to cover the cost of his trip. how much should be the April taxable income of Marek before allowance and zus be?
Total Payable= monthly Wage + Additions- reductions
Additions: 1000+350+100+ 5 days per diem + 1 night hotel accom= 1450+ 5*30+45 = 1645
Wage= 6000+2000= 8000
reduction = cost of resturant (without invoice)
=> Total Payable= 8000–1645+100= 6455 PLN
the cost of resturant can not be considered as the costs, as it doesnot have the invoice.
Allowable costs to revenue:
the taxpayer can deduct an amount from the taxable income. this is called the cost of earning. this value can be a Flat-Rate based reduction for the employment contracts.
Example 1: Lidia is employed ar a tobacco factory for the whole 2018. she also worked at a agency from january to october. how much flat rate should be reduced from her salary?
For the company it is not important if she works in one place or n place. they have to reduce the minimum of 250 ( in the same city) or 300 (in different city) from the staff. at the end of the year, that is the staff who should revise her paid taxes based on the 4 categories. so Lidia in this case (as worked in two places in the same city) can have a deduction of 4500, while there is an overpayment of 5500. so she has to return 1000 to tax at the end of the year.
In 2020 Kat is working for a sweets factory in Warsaw and from January to the end of September also for dry cleaners in Pruszków.
Required: calculate flat-rate cost for Katarzyna in 2020 knowing she lives in Pruszków.
kat worked for two places and one is in another city. so the maximum deduction is 5400 PLN.
Place 1: different city: worked for 12 months.
→ Tax Flat rate 1: 12*300= 3600
Place 2: The same city: worked for 9 month
→ Tax flat rate 2: 9*250=2250
So at the end of the year, she has to pay back 450 PLN to the tax office.
John’s gross salary is 4000 PLN per month. He lives and works in Kraków.
Required: calculate net salary which he receives on his bank account every month.
Kate Rich earns PLN 16,000 a month working at a rehabilitation clinic.
A. Please calculate security contribution for the whole year.
B. Please calculate October’s social security contributions for Katarzyna, knowing she lives and works in Poznan.
Anna earns PLN 23,000 per month working in a bank.
A. Please calculate security contribution financed by employee and employer for the whole year.
B. Please calculate July’s net salary for Katarzyna, knowing she lives and works in Warsaw.