[Poland] Zero PIT in 2021 also for apprentices and trainees

From 1 January 2021, the tax relief for young people, or “zero PIT”, is also available to taxpayers under the age of 26 who settle income from internship contracts and graduate traineeship contracts.

The tax relief for the young became effective in the second half of 2019, and until the end of 2020 it was available only to taxpayers who:

• were under 26 years of age (including their 26th birthday, but if the 26th birthday falls on a Saturday or public holiday, the birthday is not postponed until the day following the holidays),
• and who at the same time had income from an employment relationship and related relationships (i.e., income from an official relationship, employment relationship, outwork or co-operative employment relationship and from activity pursued personally under a contract), up to an amount not exceeding PLN 85 528 in a given tax year.

This situation has changed in the new year. Below we explain precisely what this change means and who can benefit from zero PIT from January 2021.

Tax relief for young people 2021- who can benefit?

From 1 January 2021, the tax relief for young people, i.e., zero PIT, is also available for trainees and apprentices and covers income earned from 1 January 2021 onwards from the following titles:

• graduate traineeship,
• student traineeships,
• mandate contracts,
• official relationship, employment relationship, outwork and cooperative employment relationship,

if the income is earned by a natural person who is under 26 years of age, and the income of that person in a given tax year does not exceed PLN 85 528.

Moreover, it is worth noting that, just as before, the tax relief for young people does not cover income from business activities performed personally on the basis of a contract of mandate, if this income:

• is obtained in the territory of the Republic of Poland by a person subject to limited tax obligation in Poland and subject to 20% flat-rate income tax,
• does not exceed PLN 200 and is subject to 17% flat-rate income tax.

The annual limit for zero PIT remains unchanged and amounts to PLN 85 528.

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