Employment tax and social security
getsix® offer our assistance in solving problems related to personal income tax (PIT) or employment tax from the point of view of an individual taxpayer, as well as the employer acting as the tax remitter.
Tax obligations for Polish taxpayers
The tax year for all individuals is the calendar year. During the year, income tax payers are obliged to make tax advance payments before the 20th day in the month following the month in which the tax obligation arose or, in some cases, before the 20th day of the month following the quarter in which the tax obligation arose. Individuals who receive any income from abroad are obliged to calculate and pay monthly tax advances themselves. In some cases, for instance in relation to the remuneration of employees, employer is obligated to calculate, deduct and make the monthly advance payments to a competent tax office.
- The taxpayer is obliged to submit an annual tax return until April 31st of the following year;
- The taxpayers are also obliged to update all their data and file information about changes to the relevant Polish tax authority.
How getsix® can help?
getsix® services cover the following issues:
- Determining residency;
- Optimising tax and social security burdens related to staff and management remuneration;
- Advice as regards international assignments of employees and expatriate employment;
- Optimisation of tax burden of foreigners working in Poland;
- Consulting related to defining residence for tax purposes;
- Preparation of personal income tax returns for both tax residents and non-residents, as well as all necessary documents related to working or conducting other activities in Poland (e.g. registration for tax purposes);
- PIT and social security reviews for tax remitters.
The place of tax residence determines the tax liability. Persons having their tax residence in Poland pay tax on their overall – worldwide – income (unlimited tax liability). Persons not having their place of tax residence in Poland pay tax only on income sourced in Poland (limited tax liability), i.e. in general:
- Employment or freelance activity exercised in Poland;
- Business activity conducted in Poland;
- Property and other sources of income located in Poland;
- The place and scope of taxation, as well as tax rates and other significant details are determined in accordance with the Polish regulations together with relevant bilateral double tax treaties and other international agreements.
Pursuant to the Polish tax provisions a resident is a person:
- Whose centre of personal or economic interests is located within Poland, or
- who stays in Poland for more than 183 days in a year.
Determining your tax residence is therefore crucial for correct fulfilment of tax obligations and it is a first stage of getsix® tax advisory services in Poland. Due to the fact that various factors can influence the status of a foreigner in Poland, getsix® has developed a residency test to verify and monitor the scope of tax liabilities.
After analysis of the residency test, your status should be confirmed by obtaining a certificate of tax residence. This document – of a required form and content – should be issued by the tax authority of a relevant country (upon application).
Having determined the residence it is possible to establish the tax authority competent for your tax settlements and apply for a tax identification number.
Confirmation of your status allows for application of an appropriate bilateral treaty, or an international agreement concluded by Poland, and its provisions concerning avoidance of double taxation, exemptions and lower tax rates.
Your personal and economic status should be monitored in order to identify changes which may influence your tax residence.
Tax services for expatriates in Poland
getsix® are experienced in employer advisory in the field of tax and social security issues concerning employees – both from an international and domestic law perspective.
For many years now getsix® have been offering our clients the following employment-related tax advisory services:
- On-going tax advisory on employee benefits as well as Social Insurance Company (ZUS) and Personal Income Tax (PIT) obligations;
- Non-pay employee benefits taxation advisory, including employee motivational programmes, such as stock option plan;
- Developing, implementing employee and managerial pay structures advisory;
- International and domestic law-based employee delegation structure planning advisory;
- Handling tax settlements of employees delegated to/from Poland – if necessary, we cooperate with tax offices abroad to prepare foreign tax settlements.
Tax settlements and filling tax returns
The preparation, along with the filling of employee and corporate tax returnsit is part of the core businesses undertaken by our HR & Payroll department.
Social security settlements and filling relevant declarations
Polish social security regulations, together with European Union law or international treaties resolutions, determine cases when a foreigner is obliged to pay social security contributions in Poland.
Your status shall be determined based on information from the residency and income source test and in accordance with the Polish and international regulations. As a result, you will receive information whether you are subject to obligatory social security in Poland, what the scope of your obligations are and how to act in relation to them.
The preparation, along with the filling of employee and corporate social security declarations is also one of the core services undertaken by our HR & Payroll department.