Since the beginning of 2022, seniors who have reached retirement age but are not receiving a pension or family pension may benefit from a tax relief in the form of zero PIT. This solution aims to support professionally active older individuals, encouraging them to remain in the labor market.
Who is eligible for the relief?
The relief may be used by women after reaching the age of 60 and men after reaching the age of 65, provided that:
- they earn income from employment (employment contract, service relationship, outwork, cooperative employment relationship),
- they receive income from commission contracts,
- they conduct business activity taxed according to the tax scale, linear tax, or lump sum,
- they are subject to social insurance in accordance with the Social Insurance System Act.
What income is not exempt?
Zero PIT for seniors does not cover, among others:
- cash benefits from social insurance (e.g., sickness benefits),
- contracts for specific work,
- copyright (except those obtained under an employment contract),
- income taxed in a lump-sum manner,
- allowances and other benefits exempt from income tax,
- income from which tax collection has been waived based on a regulation.
Limits and method of applying the relief
The relief covers income up to 85,528 PLN annually (excluding the tax-free amount for individuals filing according to the tax scale). It may be applied in two ways:
- During the year – by reducing income tax advances.
- At year-end – when filing the annual tax return.
How to use the relief?
To benefit from zero PIT, seniors employed under an employment contract or commission contract must submit an appropriate declaration to their employer or principal. There is no official template for such a document; however, one may use the template prepared by the Ministry of Finance or prepare their own declaration.
The document must include a clear confirmation of meeting the conditions for using the relief and a clause regarding criminal liability for providing false information. The employer or principal will apply the exemption from the following month after the declaration is submitted.
