The year 2024 brings affirmative changes for many seniors in Poland. People of retirement age who are inactive working can benefit from a taxation credit to exempt their income from income tax. Women who are 60 years of age and men who are 65 years of age have the anticipation of considerable taxation savings. Here is simply a detailed guide to the rules of relief for seniors, which revenues it covers and how to usage it.
Revenues that Includes Relief for Seniors
Principles of Relief
Relief for seniors applies to various forms of income, making it attractive to a wide scope of people of retirement age who are inactive active professionally. Here are the revenues of the relief:
- Revenue from business relationship, employment relationship, overlay work and cooperative employment relationship: If you are employed on the basis of a contract of employment, a business relation or an overhead job, your income is relieved.
- Contracts of orders: This applies to contract contracts as defined in Article 13(8) of the PIT Act.
- Maternity allowance: Seniors who receive maternity benefits can besides benefit from the relief.
- Non-agricultural economical activity: This applies to activities with a taxation scale, 19% with a linear tax, 5% with a taxation rate (the alleged IP Box Relief) or a lump sum on registered income, provided that the payer is subject to social insurance.
Income limits
Bartosz Storóżyński, a press spokesperson for the Chamber of taxation Administration in Bydgoszcz, informs that the relief relieves gross from taxation up to PLN 85 528 per year (first taxation threshold). If the elder exceeds this limit, the income will be taxed on a taxation scale, but they will inactive be able to benefit from the tax-free amount of PLN 30 000.
Persons entitled to the elder Relief
Who can usage it?
Relief for seniors is available for those who meet certain conditions. It can be utilized by women after the age of 60 and men after the age of 65, provided that they do not receive a pension or household pension. This besides applies to persons who are entitled to these benefits but do not receive them.
Who Can't Use?
The relief shall not cover persons who receive:
- Family pension from KRUS,
- Family pension from uniform insurance schemes,
- Family pension from ZUS,
- Cash benefits in connection with the dismissal of a permanent uniformed officer and soldiers,
- Retired or household pay,
- Cash benefits for household members of officers or professional soldiers who died in connection with the service.
Revenue not covered by the Relief
Not all elder income is relieved. The relief does not include gross from:
- Social safety cash benefits (except maternity allowance),
- Make a deal for the work,
- Copyright (except those obtained under an employment contract),
- Revenue subject to taxation on a flat-rate income taxation under the PIT Act,
- Income exempt,
- Revenues from which taxation was discontinued by regulation.
How to usage Relief?
Declaration
In order to benefit from the relief, seniors must make an appropriate message to their employer or principal. In the event of starting the collection of a pension or a household pension, elder citizens are obliged to inform their employer or chief of this, who will no longer apply the allowance from the next period at the latest.
Impact of Longer Professional Activity
Working longer, elder citizens can number on higher pension benefits. Additional years of work translate into higher contributions, their valorisation, and a lower number of months of retirement accepted for calculation. An example is simply a pensioner who retired at the age of 81 and 6 months, having worked for over 61 years. present he receives the highest pension paid to a female in Poland, which is PLN 37.4,000 per month.
Legal basis Relief for Seniors
Legal basis
The legal basis for the relief for elder citizens is Article 21(1), point 154 and paragraphs 39 and 44 of the individual Income taxation Act (PIT). The exemption was introduced with the amendment of the individual Income taxation Act, the Corporate Income taxation Act and any another laws (the Amending Act – Polish Governance) and has been in force since 1 January 2022.
Tax credits 2024
Revenue settlement for 2023 Year
The taxpayers have time to settle their income for 2023 in the period from 15 February to 30 April 2024. This is simply a crucial minute in which all citizen should be aware of their taxation rights and obligations. cognition of taxation credits can have a crucial impact on the amount of taxation refund, so it is worth knowing what benefits can be used.
Example taxation Reliefs
In addition to relief for elder citizens, taxpayers can benefit from various another taxation breaks, specified as relief for children, rehabilitation relief, net relief or housing relief. Each of these benefits has its own rules and limits, so it is crucial to read the rules carefully and consult the taxation advisor.
Relief for elder citizens in 2024 is an excellent chance for people of retirement age to save on taxes. However, the condition is that they do not collect a pension or a household pension. cognition of the principles of relief, correct statements and informed career planning can bring tangible financial benefits. An example of a pensioner who receives the highest pension in Poland shows that longer professional activity translates into higher benefits. Therefore, it is worth reading the rules carefully and taking advantage of the taxation incentives available.
- Personal Income taxation Act (PIT)
- Bartosz Storóżyński, spokesperson for the Chamber of taxation Administration in Bydgoszcz
- Krystyna Michałek, regional press spokesperson for the Kujawsko-Pomorskie Voivodeship
Continued here:
Relief for Seniors 2024: These people 60+ don't gotta pay taxes
