PIT 0 for young people
August 12, 2019
PIT 0 for young people – conditions for obtaining the exemption
On August 1, 2019, regulations regarding PIT 0 for young people came into force.
The relief applies to persons who are under 26 years of age and obtain revenues from an employment relationship, contract of mandate, cooperative or tolling employment relationship.
In 2019, the limit of income that will benefit from the exemption is PLN 35 636.67, as the regulations have been in force since August. Incomes above this limit will be taxed at the certain tax rate. From January 1, 2020, the limit will amount to PLN 85,528.
This year, the Payer/Employer will not have to calculate and collect the tax, under one condition – they will receive from the taxpayer an application stating that the income should be exempt from PIT 0. From 2020, there will be no such obligation, the taxpayer will not have to submit any declaration in this matter, and the Payer will not calculate the income tax by default. They will start to calculate it just at the employee’s request.
Very important information is that all the income received from contracts concluded before August 1, but paid out after 1 August 2019, will be covered by the relief.
Taxpayers who will not submit a declaration do not have to be concerned – they will be able to gain the relief along with the annual tax settlement for 2019, submitted by April 30, 2020.
Who will be not covered by PIT 0?
Income of persons up to 26 years of age – who have earned the income below PLN 200 – have not been covered by the relief. Those still have to pay a flat-rate income tax to the Tax Office.
Unfortunately, the tax exemption does not apply to some benefits, e.g.:
– maternity benefits,
– sickness and rehabilitation benefits,
– unemployment benefits,
– certain maintenance benefits,
– compensation and severance payments for incorrect termination of contracts,
– compensation for incorrect shortening of employment contracts,
– etc.
Author: Joanna Czechowska
Tags PIT zero Poland
