WORK AND TAXES

NIP and PESEL

PESEL is a personal identification number assigned to every individual living in Poland. NIP is a tax identification number primarily for businesses and self-employed individuals. If you are a regular employee (umowa o prace), you use PESEL for tax purposes. If you run a business or are self-employed, you need NIP for invoicing and business tax filings.

Employee Capital Plans - PPK Pracownicze Plany Kapitałowe

It is a voluntary, long-term savings program designed to help employees build additional financial security for the future. Contributions to PPK come from three sources: the employee, the employer, and the state, which makes saving more effective than individual efforts alone.

Funds accumulated in PPK are private and belong to the participant. They can be used primarily after the age of 60, but earlier withdrawals are also possible under specific conditions (e.g. serious illness or housing purposes). Click the link to find out more on PPK.

TAXES in Poland

Anyone who stays and works in Poland for at least 183 days in a calendar year, or whose main personal and economic life is based there, is considered a Polish tax resident. Such a person must pay tax in Poland on all their income, no matter where it is earned (unlimited tax liability). In case of temporary residence, income that comes from Polish sources is taxed (limited tax liability). Click the link to find out more on different types of taxes.

Each year between February and April 30th, all employees who worked in Poland in the previous year, have to submit their annual PIT declaration to the fiscal authorities. Employers must provide this form to their employees by the end of February each year. PIT forms can be submitted online and the systems are available in both Polish and English. They can also be filled in on paper and sent by post or delivered directly to the tax office. Click the link to find out more on how to submit your annual tax declaration.