Personal Income Tax Act

z dnia 26 lipca 1991 r. (Dz.U. tum. gb Nr 80, poz. 350)

tj. z dnia 3 marca 2000 r. (Dz.U. tum. gb Nr 14, poz. 176)

zmiany
Data Data Publikator
2003-04-01 2003-04-01 tekst jednolity

(zm. )

Chapter 1. Taxpayers and object of taxation.

Art. 1 [Scope of this Act] This Act shall regulate taxation of personal income with income tax.
Art. 2 [Exclusions]
1. The provisions of this Act shall not apply to:
1) revenues from agricultural activities, with the exception of income from special sectors of
agricultural production;
2) revenues from forestry within the meaning of the Forestry Act and the Act on Farmland
Afforestation;
3) revenues subject to the inheritance tax and gift tax regulations;
4) revenues arising from actions which cannot be regulated by legally valid contracts;
5) revenues from the division of joint property of the spouses as a result of cessation or limitation of
marital joint property and revenues deriving from settlements after the cessation of separate properties
of the spouses or death of one of the spouses.
2. Agricultural activities, within the meaning of paragraph 1.1, shall be activities consisting in
generating unprocessed (natural) plant or animal products from own farming or animal husbandry,
including production of seeds, nursery products, breeding or reproductive material, production of soil-,
greenhouse- and plastic tunnel-grown vegetables, production of ornamental plants, cultivated
mushrooms and fruits, breeding and production of breeding material of animals, fowl and farm insects,
industrial animal production and fish farming, as well as activities under which the minimum periods
of keeping purchased animals and plants in the course of which their biological growth takes place,
amount to at least:
1) 1 month - in case of plants;
2) 16 days - in case of highly intensive fattening of geese or ducks;
3) 6 weeks - in case of other slaughter poultry;
4) 2 months - in case of other animals
- as from the date of acquisition.
3. Special sectors of agricultural production include: plant growing in hothouses and heated plastic
tunnels, growing of mushrooms and their mycelia, "in vitro" growing of plants, farm breeding and
raising slaughter and laying poultry, poultry hatcheries, breeding and raising fur and laboratory
animals, breeding of earthworms, breeding of entomophaga, breeding of silkworms, bee-keeping, as
well as breeding and raising of other animals outside of an agricultural undertaking.
3a. Breeding and raising of animals in quantities not exceeding the amounts specified in Annex No. 2
to this Act, referred to as "Annex No. 2" shall not constitute special sectors of agricultural production.
4. Whenever in this Act there is a mention of an agricultural undertaking, this shall mean an
agricultural undertaking within the meaning of the provisions of the Agricultural Tax Act.
5. (deleted)
Art. 3 [Unlimited tax-paying liability]
1. Natural persons, if their place of residence is in the territory of the Republic of Poland, shall be
liable to pay tax on the entirety of their revenues regardless of the location of their sources (unlimited
tax-paying liability).
2. (deleted)
2a. Natural persons, if their place of residence is not in the territory of the Republic of Poland, shall be
liable to pay tax only on income for work performed in the territory of the Republic of Poland under a
post-based or employment relationship, as well as other income generated in the territory of the
Republic of Poland (limited tax-paying liability).
3. The staff of diplomatic missions, consular offices, as well as other persons enjoying diplomatic or
consular immunities under international agreements or customs, as well as members of their families
living in the same household, if they are not Polish citizens and are not permanent residents in the
territory of the Republic of Poland, shall not be liable to pay income tax on income generated from
sources located abroad.
Art. 4 (deleted)
Art. 4a [Double taxation avoidance agreements] The provisions of Article 3.1 and 3.2a shall apply
with account being taken of double taxation avoidance agreements, to which the Republic of Poland is
a party.
Art. 5 [Territory of the Republic of Poland] The territory of the Republic of Poland within the meaning
of this Act shall also be deemed to include the exclusive economic zone situated beyond the territorial
sea, where the Republic of Poland, under internal laws and in accordance with international law,
exercises the rights concerning exploration and exploitation of the sea bed and its subsoil, as well as
their natural resources.
Art. 5a [Definitions] Whenever in this Act there is a mention of:
1) investments - it shall mean fixed assets under construction within the meaning of the Accounting
Act of 29 September 1994 (Dz.U. of 2002 No. 76, item 694), hereinafter referred to as "the
Accounting Act";
2) assets - it shall mean assets within the meaning of the Accounting Act, net of debts taken over and
functionally linked with the business operations of the transferor, providing those debts have not been
covered by the acquisition price, referred to in Article 22g.3;
3) an undertaking - it shall mean an undertaking within the meaning of the provisions of the Civil
Code;
4) an organized part of an undertaking - it shall mean a set of tangible and intangible assets, including
commitments, organizationally and financially separate in an existing undertaking, appropriated for
implementation of specific business targets, which at the same time could operate as an independent
undertaking implementing those targets on its own;
5) the Taxation Act - it shall mean the Taxation Act of 29 August 1997 (Dz.U. No. 137, item 926 and
No. 160, item 1083, of 1998 No. 106, item 668, of 1999 No. 11, item 95 and No. 92, item 1062, of
2000 No. 94, item 1037, No. 116, item 1216, No. 120, item 1268 and No. 122, item 1315, of 2001 No.
16, item 166, No. 39, item 459, No. 42, item 475, No. 110, item 1189, No. 125, item 1368 and No.
130, item 1452 and of 2002 No. 89, item 804 and No. 113, item 984);
6) non-agricultural commercial activities - it shall mean profit oriented, organized and continuing
activities, run in one's own name and on own or another person's account, the revenues from which are
not included in other revenues from the sources listed in Article 10.1 subparagraphs 1, 2 and 4-9;
7) the Occupational Rehabilitation Act - it shall mean the Act of 27 August 1997 on Occupational and
Social Rehabilitation and on Employment of Handicapped People (Dz.U. No. 123, item 776, with later
amendments);
8) fiscal office - it shall mean, as appropriate, a fiscal office, led by the head of fiscal office competent
for the taxpayer or withholding agent;
9) Act on Public Trading in Securities - it shall mean the Act on Public Trading in Securities of 21
August 1997 (Dz.U. of 2002 No. 49, item 447 and No. 240, item 2055 and of 2003 No. 50, item 424,
No. 84, item 774, No. 124, item 1151 and No. 170, item 1651);
10) public trading - it shall mean public trading, referred to in Article 2 of the Act on public trading in
securities;
11) securities - it shall mean securities, referred to in Article 3 of the Act on Public Trading in
Securities;
12) discount - it shall mean the difference between the amount of the proceeds generated from
redemption of a security by the issuer and the purchasing price of that security in the primary or
secondary market;
13) derivatives - it shall mean the rights, whose price depends directly or indirectly on the prices of
commodities, foreign currencies, Polish currency, foreign exchange gold, foreign exchange platinum
or securities, or on interest rates or indices, in particular options and futures;
14) capital funds - it shall mean investment funds operating under the provisions of the Act on
Investment Funds and insurance unit-linked funds operating under the provisions of the Insurance Act,
with the exception of pension funds, referred to in the regulations concerning organization and
functioning of pension funds;
15) the Act on Lump Income Tax - it shall mean the Act of 20 November 1998 on Lump Income Tax
on Certain Revenues Generated by Natural Persons (Dz.U. No. 144, item 930, with later
amendments);
16) the Act on Public Benefit Activities - it shall mean the Act of 24 April 2003 on Public Benefit and
Volunteer Work (Dz.U. No. 96, item 873);
17) the Goods and Services Tax Act - it shall mean the Goods and Services Tax Act of 11 March 2004
(Dz.U. No. 54, item 535).
Art. 6 [Income of spouses]
1. Spouses shall be taxed separately on their incomes.
2. Married couples subject to the tax liability, referred to in Article 3.1, who own joint marital property
and who remain in that relationship throughout the tax year, may be, however, subject to paragraph 8,
at the request expressed in the joint annual tax return, subject to Article 6a, taxed jointly on the sum
total of their incomes, determined in accordance with Article 9.1 and 9.1a, having previously
deducted, separately by each of the spouses, the amounts specified in Article 26 and Article 26c; in
that case, tax is assessed in the name of both spouses at the double amount of the tax calculated on half
of the joint income of the spouses, incomes (revenues) on which lump tax is paid in accordance with
the principles laid down in this Act being excluded from the sum total of those incomes.
3. The principle laid down in paragraph 2 shall be applicable also when in the tax year one of the
spouses did not generate any revenues from the sources of income taxable in accordance with Article
27, or income was generated in the amount not giving rise to the obligation to pay tax.
4. With respect to persons single-handedly raising in the course of the tax year:
1) underage children;
2) children, whatever their age, for whom, in accordance with separate regulations, a nursing
allowance was received;
3) children of up to 25 years of age attending schools, referred to in the regulations concerning the
schooling system, or in the regulations concerning higher education, if in the course of the tax year
those children did not receive any income, with the exception of income tax exempt income,
dependent's pension and income in the amount not giving rise to the obligation to pay tax

- the tax may be assessed, subject to paragraph 8, at the request expressed in the annual tax return, at
the double amount of the tax calculated on half of the income of the person raising children single-
handedly, with a view to Article 7; incomes (revenues) on which lump tax is paid in accordance with
the principles laid down in this Act being excluded from the sum total of those incomes.

5. The person single-handedly raising children shall be deemed to be one of the parent or the legal
guardian, if that person is unmarried, widowed, divorced or separated within the meaning of separate
regulations. The person single-handedly raising children shall be deemed to be also a married person if
the spouse has been deprived of parental rights or serves time in prison.
6. (deleted)
7. (deleted)
8. The manner of taxation, referred to in paragraph 2 and 4, shall not apply in a situation whereby the
provisions of Article 30c or of the Act on Lump Income Tax apply to at least one of the spouses, the
person single-handedly raising children, or to their child.
9. The principles laid down in paragraph 8 shall not apply to persons, referred to in Article 1.2 of the
Act on Lump Income Tax, not availing themselves at the same time from taxation of revenues from
non-agricultural commercial activities in accordance with the principles laid down in Article 30c, or in
the Act on Lump Income Tax.
10. The manner of taxation, referred to in paragraph 2 and 4, shall not apply to taxpayers, who file the
request, expressed in the tax return, referred to in paragraphs 2 and 4, after the date, referred to in
Article 45.1.
Art. 6a [Other cases of joint taxation of spouses]
1. The request for joint taxation of spouses who owned joint marital property in the tax year may be
also filed by the taxpayer, who:
1) entered into marriage before the beginning of the tax year, and the spouse died in the course of the
tax year;
2) remained in marriage throughout the tax year, and the spouse died after the end of the tax year,
before filing of the tax return.
2. To the taxpayers, who filed the request, referred to in paragraph 1:
1) the manner of taxation laid down in Article 6.2 shall apply;
2) the provisions of Article 6.3 and Article 6.8-10 shall apply;
3) the provision of Article 6.4 shall not apply.
Art. 7 [Income of underage children]
1. Income of own and adopted underage children, with the exception of income from their work,
scholarships and income from things given to them for free use, shall be added to the income of
parents or income of persons, referred to in Article 6.4, unless the parents are not entitled to derive
profits from sources of children's revenues.
2. If the spouses are subject to separate taxation, half of the income of underage children shall be
added to the income of each of the spouses.
3. The provisions of paragraph 2 shall not apply to the spouses, who have been separated within the
meaning of separate regulations.
Art. 8 [Income from a joint source]
1. Revenues from a shareholding in an unincorporated company, from joint property, joint venture,
joint ownership or joint use of things or property rights shall be determined for each taxpayer in
proportion to their right to share in the profit and, subject to paragraph 1a, shall be combined with
other revenues from the sources taxable in accordance with the tax scale, referred to in Article 27.1. In
case no evidence to the contrary is available it is assumed that the rights to share in the profit are
equal.
1a. Income from non-agricultural commercial activities, referred to in Article 10.1.3, generated by
taxpayers taxed in accordance with the principles laid down in Article 30c, shall not be combined with
other revenues from the sources taxable in accordance with the tax scale, referred to in Article 27.1.
2. The principles laid down in paragraph 1 shall be applied, as appropriate, to:
1) accounting for deductible costs, non-deductible costs, and losses;
2) tax reliefs and concessions relating to the activities conducted in the form of an unincorporated
partnership.
3. The principles, referred to in paragraphs 1 and 2, shall also apply to spouses, who own joint marital
property and generate, from the sources specified in Article 10.1.6, revenues from joint property, joint
ownership or joint use of things, unless they file a written declaration as to taxation of the entire
income generated form that source by one of them.
4. The declaration, referred to in paragraph 3, should be filed with the competent head of fiscal office
not later than by the 20th day of the month following the month, in which the first in the tax year
revenues from joint property, joint ownership or joint use of things was generated from the source
specified in Article 10.1.6.
5. The choice of the principles for taxation of the entire income by one of the spouses, expressed in the
declaration, referred to in paragraph 3, shall apply for payment of tax withholding and filing tax
returns for the entire tax year, as well as filing returns on the amount of income generated (loss
incurred), unless as a result of a divorce or separation joint marital property was divided and the object
of the contract was awarded to the spouse who was not obliged to pay tax withholding and file returns.
Art. 9 [Object of taxation]
1. Income tax shall be chargeable on all types of income, with the exception of income referred to in
Articles 21, 52, 52a and 52c and income, on which tax has been waived under the provisions of the
Taxation Act.
1a. Should the taxpayer receive income from more than one sources, in the given tax year income tax
shall be chargeable, subject to Article 24.3, Article 28-30, Article 30a-30c and Article 44.7e and 7f, on
the sum total of revenues from all sources.
2. Income from a source, unless the provisions of Article 24-25 provide otherwise, shall be the excess
of revenues from that source over deductible costs generated in the tax year. If deductible costs exceed
the sum total of revenues, the difference shall be the loss from that source.
3. The amount of the loss from a source may be deducted from income generated from that source in
the next consecutive five tax years, with the proviso that the amount of the deduction in any of those
years may not exceed 50% of the amount of that loss.
3a. Paragraph 3 shall not apply to the losses incurred:
1) as a result of selling things and property rights, referred to in Article 10.1.8, and
2) from the sources, income from which is free from income tax.
4. Paragraph 3 shall apply to losses from special sectors of agricultural production if income from
special sectors of agricultural production for a period of the subsequent five tax years is determined on
the basis of books.
5. Paragraph 3 shall apply, as appropriate, when in the period, referred to in that provision, the
taxpayer is taxed in accordance with the principles laid down in Chapter 2 of the Act on Lump Income
Tax. In that case, the loss shall be deducted from income, referred to in Article 6.1 of the Act on Lump
Income Tax.
6. Paragraph 3 shall apply to losses incurred as a result of selling shares in incorporated companies,
securities, including selling of borrowed securities (short sale) and selling derivatives, and as a result
of exercise of their underlying rights, and as a result of receiving shares (stocks) in incorporated
companies or shares in cooperatives in exchange for non-financial contribution in the form other than
an undertaking or an organized part thereof.
Art. 9a [Manner of taxation]
1. Income generated by taxpayers from the source, referred to in Article 10.1.3, shall be taxed in
accordance with the principles laid down in Article 27, subject to paragraphs 2 and 3, unless the
taxpayers file with the competent head of fiscal office a written request or declaration for application
of taxation forms specified in the Act on Lump Income Tax.
2. The taxpayer may, subject to paragraph 3, choose the manner of taxation of income from non-
agricultural commercial activities in accordance with the principles laid down in Article 30c. In that
case, they shall be obliged to file with the competent head of fiscal office by 20 January of the tax year
a written declaration on the choice of that manner of taxation, and if the taxpayer starts to conduct
non-agricultural commercial activities in the course of the tax year - by the date preceding the date of
starting those activities, though not later than as at the date of generating first revenues.
3. If the taxpayer, who has selected the manner of taxation, referred to in paragraph 2, under non-
agricultural commercial activities conducted independently on in the form of an unincorporated
partnership derives revenues from services rendered for the benefit of the former or present employer,
corresponding with the activities, which the taxpayer or at least one of the partners:
1) performed in the year preceding the tax year; or
2) performed or continues to perform in the tax year
- under an employment relationship or a cooperative employment relationship, that taxpayer shall lose
in the tax year the entitlement to be taxed in the manner specified in Article 30c and shall be obliged to
file appropriate returns on the amount of income generated from the beginning of the year and pay tax
withholdings calculated in accordance with the tax scale, referred to in Article 27.1, and penalty
interest on tax withholding arrears.
4. The manner of taxation selected in the declaration, referred to in paragraph 2, shall apply also in the
following years, unless the taxpayer, by 20 January of the tax year, notifies in writing the competent
head of fiscal office of renouncing that manner of taxation or files by that date a written request or
declaration for the application of taxation form specified in the Act on Lump Income Tax.
5. If the taxpayer runs non-agricultural commercial activities
1) independently and in the form of an unincorporated partnership or partnerships;
2) in the form of an unincorporated partnership or partnerships
- the choice of the manner of taxation, referred to in paragraph 2, shall apply to all forms of conducting
those activities to which the provisions of this Act are applicable.
6. Income generated by taxpayers from the source, referred to in Article 10.1.6, shall be taxed in
accordance with the principles laid down in this Act, unless the taxpayers file with the competent head
of fiscal office a written declaration concerning application of lump taxation of booked revenues
specified in the Act on Lump Income Tax.

Chapter 2. Sources of revenues.

Art. 10 [Recital]
1. The sources of revenues shall include:
1) service relationship, employment relationship, including cooperative employment relationship,
farming or other agricultural production cooperative, homework, retirement or disability pension;
2) personally performed activities;
3) non-agricultural commercial activities;
4) special sectors of agricultural production;
5) real property or parts thereof;
6) letting, subletting, lease, sublease and similar contracts, including also lease, sublease of special
sectors of agricultural production and agricultural undertakings or parts thereof for non-agricultural
purposes or for running special sectors of agricultural production, with the exception of assets used for
commercial activities;
7) financial investments and property rights, including selling property rights other than those referred
to in subparagraph 8 letters (a)-(c),
8) selling, subject to paragraph 2:
a) real property or parts thereof, and share in real property;
b) the cooperative ownership right to an apartment or commercial premises and the right to a single-
family house in a housing cooperative;
c) the right to perpetual usufruct of land;
d) other things
- if selling is not done as part of performance of commercial activities, and in case of real property and
property rights referred to in letters (a)-(c) has been done within the period of less than five years from
the end of the calendar year in which that property was acquired or built, and in case of other things -
within the period of less than six months from the end of the month in which the thing was acquired;
in case of an exchange, those periods shall be applicable to each of the persons participating in the
exchange;
9) other sources.
2. The provisions of paragraph 1.8 shall not apply to selling:
1) under a contract for the transfer of ownership as collateral for a debt, including a loan or credit -
until final transfer of ownership of the object of the contract;
2) in the form of bringing in working assets, fixed assets or intangible assets as a contribution in kind
to a partnership or cooperative;
3) assets, referred to in Article 14.2.1, subject to paragraph 3, even if before selling they had been
decommissioned, and less then 6 years have elapsed between the first day of the month following the
month in which the assets had been decommissioned and the date of their selling.
3. The provisions of paragraph 1.8 shall apply to selling, if used for the needs of commercial activities
and in running special sectors of agricultural production: a residential building, any part thereof or a
share in such building, an apartment constituting a separate property or a share in such apartment, land
or a share in land or the right of perpetual usufruct of land or a share in such right, attached to that
building or apartment, cooperative ownership right to an apartment or a share in such right and the
right to a single-family house in a housing cooperative or a share in such right.
Art. 11 [General notion of revenue]
1. Subject to Articles 14-16, Article 17.1.6 and 17.1.9, Article 19 and Article 20.3, revenues consist of
cash and cash equivalents made available to the taxpayer in the calendar year, as well as the value of
non-cash performances and other gratuitous performances.
2. The monetary value of non-cash performances shall be determined, subject to Article 12.2, in
accordance with market prices applicable in trading of things or rights of the same type and quality, in
particular taking into account their condition, degree of wear, as well as the time and place of
obtaining them.
2a. The monetary value of other gratuitous performances shall be determined in the following manner:
1) if the performance concerns services included in the commercial activities of the performing party -
at prices applied to other recipients;
2) if the performance concerns purchased services - at purchasing prices;
3) if the performance concerns letting the use of premises or a building - at the equivalent of the rent
that would have been due under a potential lease contract for those premises or building
4) in other cases - in accordance with market prices applied in the performance of services or letting
the use of things or rights of the same type and quality, taking into account their condition, degree of
wear, as well as the time and place of letting them for use.
2b. If the performances are partially paid for, the of taxpayer's revenues shall be the difference
between the value of those performances, determined in accordance with the principles laid down in
paragraph 2 or 2a, and the consideration paid by the taxpayer.
3. Revenues in foreign currencies shall be converted into Polish zlotys in accordance with the
exchange rates applicable at the date of receipt or making available them to the taxpayer, as announced
by the bank, whose services were used by the taxpayer, and applicable to the purchase of foreign
currencies. If the taxpayer does not use the services of a bank, revenues shall be converted into Polish
zlotys at the average rate of exchange of foreign currencies applicable at the date of generating
income, as announced by the National Bank of Poland, subject to paragraph 4.
4. If the bank, whose services are used by the taxpayer, applies different rates of exchange of foreign
currencies and it is impossible to establish the rate of exchange, referred to in the first sentence of
paragraph 3, revenues generated by the taxpayer shall be converted into Polish zlotys at the average
rate of exchange of foreign currencies applicable at the date of generating income, as announced by
the National Bank of Poland.
Art. 12 [Revenues from employment relationship and their equivalents]
1. Revenues from service relationship, employment relationship, homework relationship and
cooperative employment relationship shall be all kinds of cash pays and monetary value of non-cash
performances or their equivalents, regardless of the source of financing of those pays and benefits, and
in particular: basic wages and salaries, overtime, any kind of fringe benefits, rewards, cash equivalents
in lieu of leave and all other sums regardless of whether their amounts have been determined in
advance, as well as financial contributions paid for the employee and the value of other gratuitous or
partially gratuitous performances.
2. The cash value of non-cash performances to which employees are entitled under separate
regulations shall be determined at average prices applicable to other recipients - if the performances
involve things or services included in the activities of the employer.
3. The cash value of other gratuitous or partially gratuitous performances shall be determined in
accordance with the principles laid down in Article 11.2-2b.
3a. (deleted)
4. Within the meaning of this Act an employee shall be a person remaining in the service relationship,
employment relationship, homework relationship or cooperative employment relationship.
5. Revenues of persons performing homework shall not include the value of raw materials and
consumables supplied by those persons and the refund of costs incurred by those persons for transport,
energy, fuel, maintenance of machines and equipment, etc., if the person for whom homework is
performed pays the amounts due under a separate item.
6. Revenues generated by virtue of membership in a farming cooperative or other cooperative involved
in agricultural production shall be all revenues, referred to in Article 11, generated by a cooperative
member or a member of the household thereof for the contribution of work and other incomes
provided for in the cooperative statute, having excluded from those incomes a share in the shared
profits of the cooperative from agricultural activities, with the exception of those consisting in running
special sectors of agricultural production. The provisions of paragraphs 2 and 3 shall apply, as
appropriate.
7. Retirement or disability pension shall be the sum total of retirement and disability benefits including
increases and supplements, excluding family and nursing allowances and total orphan supplements to
dependent's pensions.
8. (deleted)
Art. 13 [Revenues from the performance of free professions and their equivalents] Revenues from
personally performed activities, referred to in Article 10.1.2, shall be:
1) (deleted)
2) revenues from personally performed artistic, literary, scientific, coaching, educational and
journalistic activities, including revenues generated as a result of participating in competitions in the
field of science, culture and arts, and journalism, as well as revenues generated as a result of practicing
sports, sports scholarships awarded under separate regulations, and revenues of umpires generated for
supervising sports competitions;
3) revenues from clerical religious activities generated otherwise than under an employment contract;
4) revenues from the activities of Polish arbitrators participating in arbitration proceedings involving
foreign partners;
5) revenues generated by persons performing activities linked with the carrying out of civil or citizen's
duties, regardless of the manner of appointment of those persons, not excluding compensation for lost
earnings, with the exception of revenues referred to in subparagraph 7;
6) revenues of persons, who have been appointed by a state authority or agency, court or prosecutor,
pursuant to appropriate regulations, to perform specific functions, especially income of experts in
court, investigation or administrative proceedings, and withholding agents, subject to Article 14.2.10,
and collectors of public law debts, as well as revenues generated for sitting on committees set up by
state or local government authorities or agencies, with the exception of revenues, referred to in
subparagraph 9.
7) revenues generated by persons, regardless of the manner of their appointment, who are members of
management boards, supervisory boards, committees or other decision-making bodies of legal
persons;
8) revenues generated as a result of performance of services, under a contract of mandate or contract
for a specific task (umowa zlecenia or umowa o dzieo), received exclusively from:
a) natural persons conducting commercial activities, legal persons and their organizational entities,
and unincorporated organizational entities;
b) owner (beneficial owner) of real property, in which premises are rented, or a trustee or
administrator acting on their behalf - if the taxpayer provides those services exclusively for the
purposes linked with that real property
- with the exception of revenues generated on the basis of contracts concluded with respect to non-
agricultural commercial activities run by the taxpayer and revenues, referred to in subparagraph 9;
9) revenues generated under contracts for running an undertaking, management or similar contracts,
including income generated under such contracts concluded with respect to non-agricultural
commercial activities run by the taxpayer - with the exception of revenues referred to in subparagraph
7.
Art. 14 [Revenues from commercial activities]
1. Revenues from activities, referred to in Article 10.1.3, shall be the amounts due, even though not
actually received, having excluded the value of goods returned, rebates and discounts granted. For
taxpayers selling goods and services charged with the goods and services tax, income from those sales
shall be income net of output goods and services tax.
1a. Revenues in foreign currencies shall be converted into Polish zlotys in accordance with the average
exchange rates applicable on the date income was generated, as announced by the National Bank of
Poland. If revenues are denominated in foreign currencies, and between the date on which they were
generated and the date on which they were actually received various exchange rates were applicable,
those revenues shall be increased or reduced, as appropriate, by the differences arising from
application of the currency purchasing rate as at the date of the actual receipt of revenues, as
determined by the bank whose services were used by the revenue generating party, and application of
the average exchange rate as announced by the National Bank of Poland as at the date on which
revenues were generated.
1b. Revenues generated as a result of foreign exchange differences on own financial assets in foreign
currencies linked with commercial activities shall be determined as a difference between the value of
those assets calculated at the currency purchasing rate as at the date on which revenues were actually
received and currency purchasing rate as at the date on which they were received, or the currency
selling rate, as announced by the bank, whose services were used by the taxpayer.
1c. The date on which revenues were generated, referred to in paragraph 1, shall be, subject to
paragraph 1e-1g, the date of invoicing, though not later than the last day of the month, in which:
1) the thing was delivered, the property right was sold; or
2) the service was performed, including partially performed service, if its partial performance
constitutes a title for payment under a contract or separate regulations; or
3) payment for the performance was received - in other cases.
1d. (repealed)
1e. Revenues generated under rent, tenancy, leasing or similar agreements, the object of which are
assets linked with commercial activities, shall be revenues due determined as at the date at which the
amounts arising under those agreements become payable.
1f. If the taxpayer:
1) is a taxable person with respect to the goods and services tax and does not exercise the exemption
from that tax, and
2) keeps the receipt and expense book, and
3) records revenues at the date of invoicing, in accordance with separate regulations
- the date on which revenues are generated shall be the date of invoicing, and if an invoice was not
issued within the period specified in separate regulations, the date on which revenues are generated
shall be the date on which an invoice should have been issued; in case the events, referred to in
paragraph 1c, took place in December of a given tax year, and invoices relating to those will be issued,
in accordance with separate regulations, in the following year, the date on which revenues are
generated shall be the last day of the tax year, in which those events took place.
1g. In case of settlements relating to:
1) the supply of electricity, heat or pipe gas;
2) the supply of telecommunication and radio telecommunication services, with the exception of
prepaid services, including telephone services;
3) water distribution, wastewater management, waste disposal and neutralization services
- the date on which revenues are generated shall be the due date for payment specified in the invoice,
and if that date is not specified - the last day of the month in which the invoice was issued.
2. Revenues from commercial activities shall also be:
1) revenues from selling the following assets used for the purposes linked with commercial activities
and in running special sectors of agricultural production:
a) fixed assets;
b) assets referred to in Article 22d.1, excluding assets, whose initial value determined in accordance
with Article 22g is less than PLN 1500;
c) intangible assets
- included in the inventory of fixed assets and intangible assets, also including revenues from selling
assets referred to in letter b), cooperative ownership title to commercial premises or a share in such
right not included in the inventory of fixed assets and intangible assets, subject to paragraph 2c; in
determining the amount of revenues the provisions of paragraph 1 and Article 19 shall apply, as
appropriate;
2) grants, subventions, subsidies and other gratuitous performances obtained to cover costs or as
refunds of expenses, except when those revenues linked with the receipt, purchase or own manufacture
of fixed assets or intangible assets, which are depreciated in accordance with Article 22a-22o
3) foreign exchange gains/losses;
4) contractual penalties received;
5) interest on money in bank accounts kept in relation with the activities performed;
6) the value of remitted or time-barred debts, subject to paragraph 3.6, including credits (loans), with
the exception of remitted loans from the Labour Fund;
7) the value of repaid amounts due, which were written off, in accordance with Article 23.1.20, as lost
or for which provisions were established previously classified as deductible costs;
7a) the value of returned amounts due under the agreement, referred to in Article 23f, previously
classified as deductible costs on the basis of Article 23h;
7b) the value of amounts due, remitted, time-barred or written off as lost in that part on which
revaluation write-offs were previously classified as deductible costs;
7c) The equivalent of revaluation write-offs on amounts due, previously classified as deductible costs,
in case the reasons underlying those write-offs ceased to exist;
7d) in case of reduction or refund of the goods and services tax or refund of excise duty in accordance
with separate regulations - input goods and services tax or refunded excise duty, in that part in which
the tax or duty were previously classified as deductible costs;
7e) the equivalent of released or reduced provisions, referred to in Article 23.1.22, previously
classified as deductible costs;
7f) the amount of the goods and services tax:
a) not included in the initial value of fixed assets and intangible assets depreciated in accordance with
Article 22a-22o; or
b) relating to things or rights other than fixed assets or intangible assets, referred to in letter (a)
- in that part, in which the adjustment was made as a result of which the tax deducted in accordance
with Article 91 of the Goods and Services Tax Act was increased;
8) the value of received non-cash performances and other gratuitous performances, calculated in
accordance with Article 11.2-11.2b, with the exception of those received from persons classified in the
1st and 2nd tax groups within the meaning of the inheritance and gift tax regulations;
9) the remuneration received for servicing the participant's employee pension plan in connection with
the refund of the additional contribution;
10) the remuneration of withholding agents for:
a) timely payment of withheld taxes to the state budget;
b) (repealed)
c) performance of tasks involving establishment of entitlements to receive performances and the
amounts thereof, and payment of sickness benefits specified in the social security system regulations;
11) revenues from letting, subletting, lease, sublease and similar contracts relating to assets used for
commercial activities;
12) indemnity received for losses concerning assets relating to the conducted commercial activities or
running special sectors of agricultural production.
2a. In case of repayment of a part of the amount due, referred to in paragraph 2.7, income shall be
determined in proportion to the share of the repaid part of the amount due in the total.
2b. In case of contracts for renting or leasing things or property rights and similar contracts,
concerning assets relating to commercial activities, or if the landlord or lessor transferred the amounts
due as fees under such contracts onto a third party, and those contracts between the parties do not
expire, the amounts paid by the third party by virtue of the transfer of the amounts due shall not be
included in revenues of the landlord or lessor. Fees paid by the tenant or leaseholder to the third party
shall constitute revenues of the landlord or lessor as at the due date.
2c. Revenues, referred to in paragraph 2.1, shall not include revenues from selling the following assets
used for the purposes relating to commercial activities and for running special sectors of agricultural
production: a residential building, any part thereof or a share in such building, an apartment
constituting a separate property or a share in such apartment, land or a share in land or the right of
perpetual usufruct of land or a share in such right, attached to that building or apartment, cooperative
ownership right to an apartment or a share in such right and the right to a single-family house in a
housing cooperative or a share in such right. Article 28 shall apply, as appropriate.
2d. Paragraph 2.7f shall apply, as appropriate, should the right to deduct input tax from output tax,
referred to in Article 91.7 of the Goods and Services Tax Act, change.
3. Revenues, referred to in paragraphs 1 and 2, shall not include:
1) payments collected or amounts due entered in the books on account of deliveries of goods and
services, which will be effected in the following reporting periods, as well as loans and credits
obtained and loans repaid, with the exception of capitalized interest on those loans;
2) the amounts of accrued but not received interest on amounts due, also including interest on loans
extended;
3) refunded, remitted or waived taxes and duties constituting income of the state budget or budgets of
local government units, not classified as deductible costs;
3a) other refunded expenses not classified as deductible costs;
3b) refunded, remitted or waived contributions paid to the State Fund for Rehabilitation of the
Disabled pursuant to separate regulations, not classified as deductible costs;
4) (deleted)
5) revenues, which within the meaning of the company social benefits fund regulations - increase that
fund;
6) the amount equivalent to remitted debts, also including remitted loans (credits), if remittal of debts
is related to insolvency proceedings with a possibility of concluding an arrangement within the
meaning of the bankruptcy and rehabilitation regulations;
7) the amounts due by virtue of the goods and services tax exempt from payment and the returned
difference of the goods and services tax, effected pursuant to separate regulations;
8) revenues from selling under a transfer of ownership agreement as security for a debt, including a
loan or credit - until final transfer of ownership of the object of the agreement;
9) (repealed)
4. (deleted)
5. (deleted)
6. (deleted)
Art. 14a (deleted)
Art. 15 [Revenues from special sectors] Revenues from special sectors of agricultural production shall
be determined in accordance with the principles laid down in Article 14, if the taxpayer keeps books
showing those revenues. The taxpayer shall be obliged to notify the competent head of fiscal office of
the intention to keep the books before the beginning of the tax year or before the start of running
special sectors of agricultural production, if it occurred in the course of the year.
Art. 16 [Revenues from real property let for use free of charge]
1. Income from all or part of real property let over for use free of charge to other natural and legal
persons and unincorporated organizational entities shall be the rent value, i.e. the equivalent of the rent
which would be due from those persons had contracts for renting or leasing of real property been
concluded. However, the rent value of premises or residential buildings let over for use to persons
remaining with the taxpayer in employment relationship, for whom it constitutes gratuitous
performance, referred to in Article 12.1, shall not be treated as revenue.
2. If the owner of real property uses it for its own needs or the needs of family members, or has let real
property or a part thereof over for use for the purposes of scientific, scientific-technical, didactic,
educational, cultural activities, activities in the field of physical culture and sports, environment
protection, charity, health protection and social welfare, occupational and social rehabilitation of
disabled persons, religious cult and to trade unions, the rent value of that real property or a part thereof
shall not be determined, and expenses related with that real property shall not be classified as
deductible costs.
Art. 16a [Income from renting leasing] The provision of Article 14.2b shall apply, as appropriate, to
determination of revenues from contracts for renting or leasing things or property rights and similar
contracts, concerning objects other than assets relating to commercial activities, with the proviso that
the fees paid by the tenant or leaseholder to a third party shall constitute revenues of the landlord or
lessor as at the date of payment.
Art. 17 [Revenues from financial capital]
1. Revenues from financial capital shall be:
1) interest on loans;
2) interest on savings deposits and money in bank accounts on or in other forms of saving, depositing
or investing, with the exception of cash and cash equivalents relating to the commercial activities
performed;
3) interest (discounted interest) on securities;
4) dividends and other revenues from a share in profits of legal persons, derived from shares (stocks)
of an incorporated company or co-operative, including also:
a) dividends from shares deposited by members of employee pension funds in quantity accounts;
b) interest on membership shares from balance-sheet surplus (general income) in cooperatives;
c) distribution of assets of wound-up company (cooperative);
d) the value of gratuitous or partially gratuitous performances made for stockholders or shareholders,
determined in accordance with the principles arising from Article 11.2-11.2b;
5) revenues from participation in capital funds subject to paragraph 1c;
6) revenues due, even if not actually received, from:
a) selling shares in incorporated companies and securities;
b) exercising rights under securities, referred to in Article 3.3 of the Act on Public Trading in
Securities;
7) revenues from selling subscription rights, including also from selling subscription rights to shares of
a new issue by an employee pension fund on behalf of a member of the fund;
8) revenues of members of employee pension funds by virtue of the transfer of shares deposited in
quantity accounts to the assets of those funds;
9) par value of shares (stocks) of an incorporated company or shares of a cooperative received in
exchange for a non-financial contribution;
10) revenues from selling derivative financial instruments and exercise of rights thereunder.
1a. Income described in paragraph 1.9 shall arise as at the date of:
1) registering a company; or
2) entering an increase of initial capital of a company into a register; or
3) issue of share documents, if the receipt of shares is linked with the conditional increase of initial
capital.
1b. Income referred to in paragraph 1.10 shall arise as at the date of exercising rights under derivative
financial instruments.
2. The provisions of Article 19 shall apply, as appropriate, to determination of the value of revenues,
referred to in paragraph 1.4(c) subparagraphs 6, 7, 9 and 10.
3. (repealed)
Art. 18 [Revenues from intellectual property] Revenues from intellectual property shall be, in
particular, revenues from copyright and neighbouiring rights within the meaning of separate
regulations, industrial property rights, rights to integrated circuit topography, trade marks and designs,
including also from selling those rights.
Art. 19 [Revenues from selling real property]
1. Revenues from selling real property or property rights and other things, referred to in Article 10.1.8,
shall be their value expressed as the price specified in the sales contract, net of the selling costs. If,
however, the price, without a justified reason, substantially differs from the market value of those
things or rights, that income shall be determined by the tax authority or fiscal control authority at
market value. The provision of second sentence of Article 14.1 shall apply, as appropriate.
2. Revenues from disposing of real property or property rights, as well as other things, referred to in
Article 10.1.8, by way of an exchange, for each party to the ownership transfer agreement shall be the
value of real property, thing or right that is disposed of by way of an exchange. The provisions of
paragraphs 1, 3 and 4 shall apply, as appropriate.
3. The market value, referred to in paragraph 1, of things or property rights shall be determined in
accordance with market prices applicable in trading of things or rights of the same kind and quality,
taking into account, in particular, their condition and degree of wear, and the time and place of selling.
4. If the value expressed as the price in the sales contract substantially differs from the market price of
real property or property rights and other things, the tax authority or fiscal control authority shall
request the parties to adjust that value or indicate reasons justifying the price substantially differing
from the market value. In case of no answer being given, no adjustment being made of the value, or no
indication being given as regards the causes justifying the price substantially differing from the market
value, the tax authority or fiscal control authority shall determine the value taking into account expert
opinion. If the value so determined differs by at least 33% from the value expressed as the price, the
costs of the expert opinion shall be borne by the selling party.
Art. 20 [Revenues from other sources]
1. Revenues from other sources, referred to in Article 10.1.9, shall be, in particular: the amounts paid
after the death of a member of an open pension fund to the person named [by the deceased] or to the
next of kin, within the meaning of the regulation on organization and functioning of pension funds,
social security cash benefits, alimonies, with the exception of child support scholarships, grants
(subventions) other than those referred to in Article 14, subsidies, rewards and other gratuitous
performances not included in revenues referred to in Articles 12-14 and 17, and revenues unmatched
by the disclosed sources.
2. Social security cash benefits, referred to in paragraph 1, shall be the amounts of sickness,
equalization, maternity, nursing allowances and rehabilitation benefits paid by the employer or the
social security authority.
3. The amount of revenues unmatched by the disclosed sources or derived from undisclosed sources
shall be determined on the basis of expenses incurred by the taxpayer during the tax year and the value
of assets accumulated during that year, if those expenses and values are unmatched by the assets
accumulated during the tax year and in previous years, derived from taxable or tax-exempt revenues.
Art. 20a (deleted)

Chapter 3. Tax exemption items.

Art. 21 [Recital]
1. The following items shall be free from income tax:
1) (deleted)
2) pensions awarded pursuant to separate regulations on pensions for disabled war and military
veterans and their families;
3) compensations received, if their amount or the principles of determination arise directly from the
provisions of separate acts or executory regulations issued on the basis of those acts, with the
exception of:
a) discharge money and compensation for shortening the employment termination notice period
specified in the labour law;
b) discharge money paid under the regulations on specific principles of terminating employment
relationships for reasons not attributable to employees,
c) discharge money and compensations for shortening the notice period for civil servants remaining in
a function-based relationship;
d) compensations awarded under the non-competition regulations;
e) compensation for the damage of assets linked with the commercial activities conducted;
f) compensation for damage of assets linked with running special sectors of agricultural production,
income from which is taxed in accordance with the principles, referred to in Article 27.1;
g) compensations arising from concluded agreements or arrangements;
3a) compensations received under the regulations on deeming invalid verdicts conferred against
persons persecuted because of their activities for independent existence of the Polish state;
3b) other compensations received under a court verdict or arrangement up to the amount specified in
the verdict or arrangement, with the exception of compensations:
a) received in connection with the commercial activities conducted;
b) relating to the benefits the taxpayer could have gained if no damage had been done;
3c) compensations in the form of a pension received, under the provisions of civil law in case of
bodily injury or health impairment, by the harmed person who has totally or partially lost capability to
do gainful work, or if their needs have increased or prospects for the future have diminished;
3d) compensations received by the owner of real property pursuant to the regulations of the geological
and mining law;
4) amounts received under property and personal insurance, with the exception of:
a) compensation for damage of assets linked with the commercial activities conducted or running
special sectors of agricultural production, income from which is taxed in accordance in accordance
with Article 27.1 or Article 30c;
b) income, referred to in Article 24.15;
5) (deleted)
5a) amounts returned by an investment fund company following expiration of the approval for the
establishment of an investment fund - up to the amount contributed to the fund;
5) money and prize winnings at casinos, videolotteries, slot machines and bingo games organized and
run by an authorized entity pursuant to the regulations on games and betting;
6a) winnings at numerical games, money lotteries, telebingo, betting, promotional lotteries, audiotext
lotteries and prize lotteries, if the one-time value of those winning is less than PLN 2280, organized
and run by an authorized entity pursuant to the regulations on games and betting;
7) death grants and funeral allowances;
8) family benefits paid pursuant to the regulations on family benefits, family and nursing allowances
and birth grants paid pursuant to separate regulations;
9) one-time birth grants paid from trade union funds;
10) the value of service clothes (uniform) if the employee is obliged to wear it, or the financial
equivalent for such clothes;
10a) the value of the representative and sports clothes received by a member of the Polish Olympic
and para-Olympic team;
11) benefits in kind and financial equivalents for those benefits, to which employees are entitled
pursuant to the regulations on work safety and hygiene, if the principles of their granting arise from
separate acts or executory regulations issued on the basis of those acts;
11a) benefits in kind and financial equivalents for those benefits, arising from the principles of work
safety and hygiene, including those with respect to special working conditions and nature of service, to
which persons remaining in a function-based relationship, granted pursuant to separate acts or
executory regulations issued on the basis of those acts;
11b) the value of vouchers, coupons and other tokens received by the employee from the employer,
which entitle to receive meals, food products or non-alcoholic beverages, when the employer, despite
their obligation arising from the regulations on work safety and hygiene, has no possibility of
providing employees with meals, food products or non-alcoholic beverages;
12) (repealed)
12a) (repealed)
13) financial equivalents for employee's own tools, materials or equipment used by them for
performing work;
14) amounts received by employees as refunds for the costs official transfer and allowances for setting
down and settlement in connection with an official transfer, up to 200% of the compensation due for
the month, in which the transfer took place;
15) benefits received for doing:
a) non-professional military service or its equivalent forms, with the exception of periodical or
contract service;
b) substitute service;
- granted pursuant to separate regulations;
16) per diems and other amounts due for the time of:
a) a business trip of an employee;
b) a trip of a person other than an employee
- up to the amount specified in separate acts or regulations issued by the minister completent for
labour matters concerning the amount and the conditions for determining the sums due to employees
of state or local government units of the budgetary sphere for business trips within and outside of the
country, subject to paragraph 13;
17) per diems and amounts constituting refunds of costs, received by people acting in performance of
civil and citizen's duties - up to the amount not exceeding PLN 2280 per month;
18) the separation allowance paid to temporarily transferred employees - up to the amount of per
diems for the time of a business trip within the country, specified in the regulations concerning the
amount and the conditions for determining the sums due to employees of state or local government
units of the budgetary sphere for business trips within the country;
19) the value of expenses incurred by the employer for accommodation of employees, subject to
paragraph 14, in:
a) workers' hostels;
b) private rooms rented for group accommodation - up to the amount not exceeding PLN 500 per
month;
20) a part of the income of persons, referred to in Article 3.1, temporarily staying abroad and obtaining
income from an employment relationship, with the exception of compensation obtained by members
of foreign service, in the amount of per diems for the time of a business trip outside of the country,
specified in the regulations concerning the amount and the conditions for determining the sums due to
employees of state or local government units of the budgetary sphere for business trips outside of the
country, for each day on which work was performed; the exemption shall not apply to income not
exceeding the equivalent of thirty per diems per year, subject to paragraph 15;
20a) (repealed)
21) (repealed)
22) (repealed)
23) (repealed)
23a) a part of the income of persons, referred to in Article 3.1, temporarily staying abroad and
deriving income from:
a) scholarships - in the amount of per diems for the time of a business trip outside of the country,
specified in the regulations concerning the amount and the conditions for determining the sums due to
employees of state or local government units of the budgetary sphere for business trips outside of the
country, for each day on which scholarship was received;
b) board and accommodation allowances paid from the state budget in connection with a transfer to do
teaching at schools and academic centres abroad, granted pursuant to separate regulations;
23b) refunds of the expenses incurred by employees for driving their own cars for the purposes of
their companies, locally, if the duty to bear those costs by the employer or the possibility of granting
the entitlement to get those costs refunded arises directly from the provisions of other acts - up to the
amount of the monthly allowance or up to the amount not exceeding the amount determined with the
application of rates per 1 kilometre of the run of the vehicle, specified in separate regulations issued by
the competent minister, if the run of the vehicle, excluding payments of the allowance, is documented
in the run records kept by employees; the provision of Article 23.7 shall apply, as appropriate;
24) financial aid granted, pursuant to separate regulations, to foster families and one-time financial aid
for setting up granted to children brought up in foster homes and public or non-public educational and
care institutions who become independent;
25) electricity and heating allowances for veterans;
25a) compensation allowances granted pursuant to the Act of 24 January 1991 on War Veterans and
Certain Persons Being Victims of War and Post-War Repressions (Dz.U. of 2002 No. 42, item 371 and
No. 181, item 1515);
26) aid received in case of individual misfortunes, natural disasters, chronic illness or death - up to the
amount not exceeding in the tax year PLN 2280, subject to subparagraphs 40 and 79;
27) benefits received in accordance with separate regulations for:
a) occupational, social and medical rehabilitation of the disabled from the State Fund for the
Rehabilitation of the Disabled and from company funds for the rehabilitation of the disabled;
b) emergency or periodical aid for veterans and their surviving family members from the State
Veterans' Fund;
28) revenues derived from selling all or a part of real property making up an agricultural undertaking;
the exemption shall not apply to revenues derived from selling land, which as a result of selling lost
their agricultural or forest character;
29) revenues derived from compensation paid in accordance with the regulations on real property
management, or from selling real property for the purposes justifying its expropriation and from
selling real property in connection with the exercise of the right of pre-emption by the buyer, in
accordance with the regulations on real property management; this shall not apply to cases, when the
owner of real property, referred to in the first sentence, acquired that property within the period of 2
years before the initiation of the expropriation process or selling real property for the price by at least
50% lower than the amount of the compensation received or the selling price of real property for the
purposes justifying its expropriation or in connection with the exercise of the right of pre-emption;
30) revenues derived from selling the right of perpetual usufruct and real property acquired in
accordance with the regulations on real property management in exchange for the property left abroad;
31) (repealed)
32) revenues derived from selling real property and property rights, referred to in Article 10.1.8 letters
a)-c), subject to paragraphs 2 and 2a:
a) the part expended not later than within two years from the date of selling:
- on acquiring, in the territory of the Republic of Poland, a residential building, any part thereof or a
share in such building, an apartment constituting a separate property or a share in such apartment, as
well as for acquiring land or a share in land or the right of perpetual usufruct of land or a share in such
right, attached to that building or apartment;

- on acquiring, in the territory of the Republic of Poland, the cooperative ownership right to an
apartment or a share in such right, the right to a single-family house in a housing cooperative or a
share in such right;

- on acquiring, in the territory of the Republic of Poland, land or a share in land, the right of perpetual
usufruct of land or a share in such right, earmarked for the construction of a residential building,
including also land or a share in land or the right of perpetual usufruct of land or a share in such right
with the construction of a residential building in progress;

- on the construction, expansion, conversion, repair or modernization of own residential building, any
part thereof, or own apartment, located in the territory of the Republic of Poland;

- on the expansion, conversion or adaptation - for residential purposes - of own residential building,
any part thereof, or own non-residential premises, located in the territory of the Republic of Poland;

b) entirely - if it was sold in order to acquire, in exchange for that real property or right, the
cooperative tenancy right to an apartment, or a residential building, or any part thereof;
c) entirely - if it was sold in performance of or in connection with a multiparty agreement on the
exchange of those buildings or rights thereto;
d) entirely - if it was acquired by way of an inheritance of gift;
e) the part expended, not later than within two years from the date of selling, on repayment of a credit
or loan, as well as interest thereon, taken for the purposes, referred to in letter a), in a bank or in a
cooperative savings-and-loan bank, having their seats in the territory of the Republic of Poland,
including also on repayment of a credit or loan and interest thereon taken before those revenues were
received;
32a) revenues derived from the exchange of, subject to paragraph 2:
a) a residential building, any part thereof or a share in such building, an apartment constituting a
separate property or a share in such apartment; or
c) the cooperative ownership right to an apartment, the right to a single-family house in a housing
cooperative, or a share in those rights; or
d) land, a share in land or the right of perpetual usufruct of land or a share in such right, attached to the
building or premises referred to in letter (a)

- if the exchange involves exclusively real property and rights, referred to letters (a)-(c), located in the
territory of the Republic of Poland;

32b) revenues from the exchange of things or rights other than those referred to in subparagraph 32a,
providing it is less than the amount of PLN 2280 under a single contract;
33) (repealed)
34) (deleted)
35) (deleted)
36) income from running schools within the meaning of the regulations on the educational system - the
part expended for the purposes of the school in the tax year or in the following year;
37) income from organization by authorized entities having their seats in the territory of the Republic
of Poland of prize lotteries and prize bingo games under a permit issued pursuant to separate
regulations, providing it was used for the implementation of projects of importance for the community
as described in the permit and the rules of the game;
38) benefits in kind or financial equivalents in lieu of those benefits received by retirement and
disability pensioners in connection with the service based relationship, employment relationship or
cooperative employment relationship previously linking them with their employers and from trade
unions - up to the amount not exceeding in the tax year PLN 2280;
39) scholarships received pursuant to the regulations on academic degrees and academic title and on
degrees and title in the field of fine arts and other academic scholarships and for academic
achievements, the principles for the granting of which were approved by the minister responsible for
higher education upon consultation with the Main Council of Higher Education or by the minister
competent for schooling and education;
40) financial assistance for pupils, students, participants in doctoral studies and persons participating
in other forms of education, originating from the state budget, budgets of local government units and
own funds of schools and universities - granted pursuant to separate regulations on the schooling
system, on higher education, on higher vocational schools and on academic degrees and academic title
and on degrees and title in the field of fine arts;
40a) awards paid out by the Polish Olympic Committee and the Polish Para-Olympic Committee for
achievements at the Olympic and para-Olympic games;
40b) scholarships for school and university students, the amounts and the principles for the granting of
which were specified in a resolution of the decision-making body of a local government entity, and
scholarships for pupils and students granted by foundations and associations on the basis of the
regulations approved by their statutory bodies and made available to the general public through
Internet, mass media or displayed for those concerned in public places - up to the amount not
exceeding per month PLN 380, subject to paragraph 10;
41) (deleted)
42) income derived from selling shares of national investment funds, established under the Act of 30
April 1993 on National Investment Funds and Their Privatization (Dz.U. No. 44, item 202, of 1994
No. 84, item 385 and of 1997 No. 30, item 164, No. 47, item 298 and No. 107, item 691) - within a
year up to the total amount of one-half of the monthly average salary in the national economy;
43) income derived from renting guest rooms, in residential buildings situated in agricultural areas in
agricultural undertakings, to persons staying there on holidays, and income derived from providing
meals to those persons, if the number of rooms rented is less than 5;
44) revenues of members of Voluntary Fire Brigades, derived from participation in training, rescue
operations and operations related to elimination of natural disasters;
45) cash benefits awarded under the Act of 31 May 1996 on Cash benefits Awarded to Persons
Deported for Forced Labour and Put in Labour Camps by the Third Reich and the Union of Soviet
Socialist Republics (Dz.U. No. 87, item 395, of 1998 No. 162, item 1118 and of 1999 No. 28, item
257);
46) income received by the taxpayer, if:
a) it comes from the governments of foreign states, international organizations or international
financial institutions, from non-refundable aid funds, including the funds of framework programmes
for research, technical development and presentation of the European Union and NATO programmes,
granted on the basis of a unilateral declaration or agreements concluded with those states,
organizations or institutions by the Council of Ministers, the competent minister or government
agencies, including also the cases whereby those funds are distributed through an agency authorized to
distribute non-refundable aid funds; and
b) the taxpayer directly implements the target of a programme financed with non-refundable aid funds;
the exemption shall not apply to income of natural persons, whom the taxpayer directly implementing
the programme's target commissions - regardless of the type of agreement - to perform specific
operations in connection with the programme implemented by the taxpayer;
46a) income received from institutions of the European Union and the European Investment Bank, to
which the provisions of Regulation No. 260/68 of 29 February 1968 laying down the conditions and
procedure for applying the tax for the benefit of the European Communities (OJ L 056, of 4.03.1968,
with later amendments) is applicable;
47) (deleted)
47a) grants from the state budget received by way of co-financing projects implemented within the
framework of the Community support for pre-accession measures for agriculture and rural
development in the applicant countries of central and eastern Europe in the pre-accession period
(SAPARD);
47b) (repealed)
47c) amounts received from government agencies, if those agencies had received funds for that
purpose from the state budget;
47d) grants, subventions, subsidies and other gratuitous performances or partially paid performances,
received for agricultural purposes from the state budget, budgets of local government units, from
government agencies or from funds originating from the governments of foreign states, international
organizations or international financial institutions;
48) (repealed)
49) the amounts paid to persons, referred to in Article 23.1 and 23.3 of the Act of 22 June 1995 on
Quarters for the Armed Forces of the Republic of Poland (Dz.U. of 2002 No. 42, item 368, with later
amendments), as a housing allowance;
49a) the financial equivalent in lieu of an apartment paid pursuant to the regulations on the
Government Security Bureau;
50) revenues received in connection with the return of shares of contributions in a cooperative or
contributions in a partnership, up to the amount of shares or contributions brought into a cooperative
or contributions brought into a partnership;
51) revenues received as a refund of additional financial contributions made previously, in accordance
with separate regulations, to an incorporated company - up to the amount of additional financial
contributions made;
52) interest on and the amount of compensations received pursuant to the provisions of the Act of 20
December 1996 on the Principles of Realizing Advance Payments for Passenger Cars (Dz.U. No. 156,
item 776);
53) the value of financial compensation received pursuant to the regulations on compensating
periodical non-increase of salaries in the budgetary sphere and loss of certain increases or supplements
to retirement and disability pensions;
54) (deleted)
55) (repealed)
56) (deleted)
57) (deleted)
58) payments:
a) transfer of funds deposited with an employee pension plan to another employee pension plan or to
an individual pension account within the meaning of the regulations on individual pension accounts;
b) of funds deposited with an employee pension plan to a participant or to persons authorized to
collect those fund after the death of a participant;
58a) income from savings in an individual pension account, within the meaning of the regulations on
individual pension accounts, derived in connection with:
a) depositing and withdrawal of funds by a saver;
b) payment of the funds to persons authorized to collect those fund after the death of a saver;
c) transfer

- with the proviso that the exemption shall not apply when the saver deposited savings in more than
one individual pension account, unless those regulations provide for such a possibility;

59) payment of funds from an open pension fund to the former spouse of a member of that fund,
transferred to that spouse's account in a open pension fund;
60) (deleted)
61) the amount of remitted student loans or credits, granted pursuant to the regulations on student
loans and credits;
62) (repealed)
63) the financial benefit and the lump-sum energy allowance granted under the Act of 2 September
1994 on Cash benefits and Entitlements for Soldiers Doing Substitute Military Service Compulsorily
Employed in Coalmines, Quarries, Uranium Mines and Construction Battalions (Dz.U. No. 111, item
537, of 1995 No. 138, item 681, of 1998 No. 162, item 1118 and of 1999 No. 80, item 902);
63a) income of the taxpayers, subject to paragraph 5a-5c, derived from commercial activities
conducted within special economic areas under permits, referred to in Article 16.1 of the Act of 20
October 1994 on Special Economic Areas (Dz.U. No. 123, item 600, of 1996 No. 106, item 496, of
1997 No. 121, item 770, of 1998 No. 106, item 668, of 2000 No. 117, item 1228, of 2002 No. 113,
item 984 and No. 240, item 2055 and of 2003 No. 188, item 1840), with the proviso that the amount of
public aid granted in the form of this exemption must not exceed the permissible amount of public aid
for entrepreneurs in areas classified as in need of aid in the highest amount, in accordance with
separate regulations;
64) supplements to family allowances for total orphans, paid pursuant to separate regulations;
65) sickness allowances paid pursuant to separate regulations on social security for farmers and
members of farming cooperatives, agricultural circles cooperatives and their families, in that part
which corresponds with the share in income from agricultural activities, with the exception of those
consisting in running special sectors of agricultural production, in the cooperative's income for
distribution;
66) (repealed)
67) the value of benefits in kind received by employees, financed entirely from the company social
benefits fund or trade union funds - up to the amount not exceeding in the tax year PLN 380; benefits
in kind do not include vouchers, coupons and other tokens exchangeable for goods or services;
68) the value of winnings in competitions and games organized and broadcast (announced) by the
mass media (the press, radio and television) and competitions in the area of science, culture, art,
journalism and sports, as well as bonuses linked with bonus sales - if the one-time value of those
winning, prizes or bonuses is less than the amount of PLN 760; the exemption from the tax on bonuses
linked with bonus sales shall not apply to bonuses received by taxpayers in connection with their non-
agricultural commercial activities as income from those activities;
68a) the value of gratuitous performances, referred to in Article 20.1, received from performance
providers in connection with their promotion or advertising - if the one-time value of those
performances is less than the amount of PLN 100; the exemption shall not apply, if the performance is
provided to employees of the performance provider or persons remaining in a civil-law relationship
with the performance provider;
69) (deleted)
70) (repealed)
71) income from selling plant and animal products of own growing or breeding, not constituting
special sectors of agricultural production, industrially processed, if the processing consists in pickling
plant products or milk processing or slaughtering and dressing of animals, including also butchering,
cutting and classification of meat;
72) income from selling herbaceous raw materials and wild forest herbs classified in the Polish
Classification of Products and Services (PKWiU) in the group designated 01.11.91-00, forest berries,
fruits (PKWiU 01.13.23-00) and mushrooms (PKWiU 01.12.13-00.43)- picked personally or with the
help of the closest family members;
73) the amount of one-time financial aid paid to the victims of Nazi persecutions by the Polish-
German Reconciliation Foundation
74) received from abroad:
a) disability pensions for war veterans;
b) compensations awarded to war victims and members of their families;
c) accident benefits for persons, whose disability occurred in connection with forced labour in the
Third German Reich in the years 1939-1945;

- providing the withholding agent is presented with a document issued by a foreign agency stating the
nature of the awarded benefit;

75) pensions paid to victims of repressions and members of their families, awarded to them
accordance with the principles laid down in the regulations on on pensions for disabled war and
military veterans and their families;
76) the value of per diems and allowances for foreign guests coming to Poland under programmes and
agreements, and the value of meals for interpreters (guides) accompanying those persons, with the
exception of financial equivalents for those meals;
77) financial equivalents for the lack accommodation paid to: officers of the Police Force and Prison
Guards, Internal Security Agency, Intelligence Agency, Border Guards, Government Security Bureau
and State Fire Service - up to the amount not exceeding PLN 2280;
78) subsidies to: rest organized by entities conducting commercial activities in that respect, in the form
of organized holiday stays, colonies, summer camps or winter holidays, including those combined
with learning, curative stays at sanatoria, at medical/sanatorium, rehabilitation/educational and
medical/nursing facilities, and travel connected with those holiday and curative stays - for children and
youth up to 18 years of age:
a) from the social fund, company social benefits fund and in accordance with separate regulations
issued by the competent minister regardless of the amount thereof;
b) from other sources - up to the amount not exceeding in the tax year PLN 760;
79) social welfare benefits;
80) revenues from the service based relationship received in candidate service by officers of the
Police, Government Security Bureau, Border Guards and State Fire Service;
81) (repealed)
82) salaries of the officers of the United Nations Organization, specialized organizations and other
international institutions and organizations of which the Republic of Poland is a member and whose
statutes provide for tax exemption of salaries paid by them, if those officers are on the list of the
Ministry of Foreign Affairs;
83) amounts paid to police officers, soldiers, customs officers and staff of military unit and police
units used outside of the territory of the state in order to take part in an armed conflict or to reinforce
the troops of the state or allied states, peace-keeping missions, operations aimed at preventing terrorist
acts or their consequences, as well as amounts paid to soldiers, police officers, customs officers and
staff acting as observers in peace-keeping missions of international organizations and multilateral
forces; the exemption shall not apply to remuneration for work and salaries and other amounts due for
doing service at the last service position held in the country;
84) the value of performances under entitlements to reduced-fare travel by rail and bus public
transport, arising from the regulations on entitlements to reduced-fare travel by public transport;
85) the value of performances with respect to the exercise of entitlements to reduced-fare or free travel
by municipal transport awarded pursuant to separate regulations;
86) (repealed)
87) the value of performances awarded to retirement and disability pensioners pursuant to separate
regulations with respect to television and radio subscription fees;
88) (repealed)
89) the value of performances received by students from the academic school, pursuant to separate
regulations, in connection with the school's referral for practical training - up to the amount not
exceeding in the tax year PLN 2280;
90) the value of performances awarded in accordance with separate regulations by the employer for
professional upgrading and general education of employees, with the exception of remunerations
received for the time of training leaves and for the time of leaves for a part of a working day, to which
employees taking up school or raising their professional skills in extramural forms are entitled;
91) increases (raises) of the nature of family allowances paid, through a withholding agent, with
foreign retirement and disability pensions, providing the withholding agent is presented with a
document stating the amount of the raise;
92) benefits in kind or financial equivalents in lieu of those benefits, to which family members of
deceased employees and deceased retirement and disability pensioners are entitled pursuant to separate
regulations - up to the amount not exceeding in the tax year PLN 2280;
93) income derived from purchase of company-owned residential buildings or apartments by their
tenants - up to the amount equal to the difference between the market price of those buildings or
apartments and the purchasing price;
94) remuneration received by members of farming cooperatives for the use of land contributions by
the cooperatives;
95) interest on late payment of remunerations and performances under the entitlements, referred to in
Article 10.1.1;
96) (repealed)
97) housing allowances and allowances for buying fuel, awarded pursuant to separate regulations on
housing allowances;
98) allowances for war veterans and allowances for clandestine teaching, awarded pursuant to separate
regulations;
98a) the amount of refunds for premiums paid on mandatory third party liability insurance of car
owners or car theft insurance, awarded under the Act of 29 May 1974 on Pensions for Disabled War
and Military Veterans and Their Families (Dz.U. of 2002 No. 9, item 87 and No. 181, item 1515);
98b) refunds of the amount of the reduction for premiums paid by war and military veterans on
mandatory third party liability insurance of car owners or car theft insurance, received from the
pension agency;
99) (repealed)
100) income from retirement or disability pensions received by persons who lost their sight as a result
of war operations during the war period 1939-1945 or explosion of unexploded bombs or shells left
over after that war, providing the withholding agent is presented with:
a) a certification of sight impairment of the 1st or 2nd category issued by the competent authority;
b) medical (hospital) records from the time of the accident confirming the accident, or a notarially
certified statement of two witnesses confirming the loss of sight as a result of war operations in the
1939-1945 period or explosion of unexploded bombs or shells left over after that war;
c) a valid medical ophthalmological certificate as to the traumatic sight damage or a valid certificate of
a forensic medical examination confirming the loss or damage of sight as a result of events, referred to
in letter (b); or
d) a valid membership card of the Association of Blind Civilian War Victims or the Association of
Blind Soldiers of the Republic of Poland;
101) revenues received by blood donors from selling blood or serum collected from them;
102) refunds for the costs of travel of unemployed persons to the place of work or practice, training,
occupational counselling or vocational on-the-job training and the costs of accommodation of the
unemployed persons at the place of work or practice, training, occupational counselling or vocational
on-the-job training, received under the Act of 20 April 2004 on Promotion of Employment and Labour
Market Institutions (Dz.U. No. 99, item 1001);
103) (repealed)
104) financial performances and the value of non-cash performances received by Sejm deputies or
senators under Article 23.3, Article 43.1, Article 44.1 and 44.2 and Article 46 of the Act of 9 May
1996 on the Implementation of Sejm Deputy and Senator Functions (Dz.U. No. 73, item 350, with
later amendments);
105) income derived from selling stocks (shares) received as an inheritance or gift - the part equal to
the amount of the inheritance and gift tax paid;
106) compensations received under the resolution of the UN Security Council paid to persons
distressed as a result of war operations in Kuwait;
107) awards paid pursuant to the regulations issued by the competent minister concerning organization
of rehabilitation activities in psychiatric hospitals and rewarding their participants;
108) the amount of financial aid and the value of other financial performances financed with budget
funds awarded to repatriates and persons seeking the refugee status;
109) the par value of shares (stocks) in an incorporated company or a cooperative - received in
exchange for a contribution in kind in the form of an undertaking or an organized part thereof;
110) the value of performances to which members of the foreign service performing their official
duties in foreign missions are entitled and the value of performances to which staff of Polish budgetary
entities seated outside of the territory of the Republic of Poland are entitled, arising from the
provisions of separate acts or the executory regulations issued on their basis, with the exception of
remuneration for work, financial equivalent for holidays, foreign bonus, sickness and maternity
allowances;
111) interest received in connection with the refund of overpaid taxes and other amounts owed to the
budget, as well as interest on the refund of the goods and services tax difference, within the meaning
of separate regulations;
112) refund of the costs of commuting of employees to the place of work, if the duty of the employer
to bear those costs arises directly from the provisions of other acts;
113) the value of performances received by voluntaries from non-governmental organizations, public
administration agencies, undertakings, organizational entities, referred in Article 42 of the Act on
Public Benefit Activities, for training, medical examinations, meals, purchase of personal protection
measures, health and accident insurance premiums paid in accordance with the principles laid down in
separate regulations;
114) the value of received gratuitous performances or partially gratuitous performances and the value
of non-cash performances financed or co-financed with the funds from the state budget, local
government units, with the funds of government agencies or with the funds provided by the
governments of foreign states, international organizations or international financial institutions, under
government programmes;
115) winnings or prizes received by pupils for participation in contests, tournaments and competitions
organized pursuant to the regulations on the schooling system;
116) direct subsidies applied under the Common Agricultural Policy of the European Union, received
pursuant to separate regulations;
117) the value of performances received from voluntaries, provided in accordance with the principles
laid down in the Act on Public Benefit Activities;
118) the value of gratuitous performances or partially gratuitous performances and the value of non-
cash performances, for training, medical examinations and accident insurance received under the Act
of 20 April 2004 on Promotion of Employment and Labour Market Institutions (Dz.U. No. 99, item
1001);
119) the part of interest on securities issued by the State Treasury and bonds issued by local
government units equal to the amount of interest paid upon purchasing those securities from the issuer;
120) compensation paid, under court decisions and agreements (arrangements) reached, to the owners
of land being part of an agricultural undertaking, for:
a) establishment of real easement;
b) land rehabilitation;
c) damage done to crops and trees

- as a result of implementing on that land, by entities authorized under separate regulations, investment
projects involving construction of technical infrastructure installations, referred to in Article 143.2 of
the Act of 21 August 1997 on Real Property Management (Dz.U. of 2004 No. 261, item 2603).

1a. Paragraph 1.11, 1.13 and 1.16 shall apply to revenues of temporary staff, within the meaning of
separate regulations, received from the temporary employer.
2. The provisions of paragraph 1.32 and 1.32a shall not apply, if:
1) the construction and selling of buildings and premises, selling of land and the right of perpetual
usufruct of land is an object of taxpayer's commercial activities;
2) income from selling or exchange is spent on:
a) the acquisition of land or a share in land, the right of perpetual usufruct of land or a share in such
right, a building, any part thereof, or a share in a building; or
b) the construction, expansion, conversion, modernization, adaptation or repair of a building or any
part thereof

- intended for recreational purposes;

3) income from selling real property and property rights constitutes income from non-agricultural
commercial activities or from special sectors of agricultural production within the meaning of Article
14.2.1.
2a. The provision of paragraph 1.32 letter e) shall not apply to taxpayers, who deducted or are
deducting interest on a credit or loan on the basis of Article 26b.
3. (deleted)
4. (repealed)
5. (repealed)
5a. The taxpayer shall be eligible for the exemption, referred to in paragraph 1.63a, exclusively with
respect to income derived from commercial activities conducted within the area.
5b. Should the permit, referred to in paragraph 1.63a, be withdrawn, the taxpayer shall lose the right to
exemption and shall be obliged to pay the tax for the entire period throughout which the exemption
was applied.
5c. Should the circumstances, referred to in paragraph 5b, occur, the taxpayer shall be obliged to
increase the taxable base by the amount of income, in relation to which the taxpayer lost the right to
exemption, and in case a loss was incurred to reduce it by that amount - in accounting for the
withholding tax for the month, in which the taxpayer lost that right, and when the loss of the right
occurred in the last month of the tax year - in the annual tax accounting.
5d. (repealed)
6. (repealed)
7. The expenses, referred to in paragraph 1.36, incurred by virtue of running a non-public school
within the meaning of the provisions of on the schooling system, if they were not recognized as
deductible costs, shall be the expenses on:
1) purchasing fixed assets in the form of teaching aids and other equipment necessary for running the
school;
2) organization of holidays for pupils, in the part constituting remuneration for the educational and
servicing staff, if not covered by parents' contributions;
8. (repealed)
9. (repealed)
10. The exemption, referred to in paragraph 1.40b, shall apply, if prior to the first payment of the
performance the taxpayer provided the withholding agent with a declaration, in accordance with the
standard form, that the taxpayer does not receive simultaneously any other taxable income, with the
exception of a family allowance and income referred to in Articles 28-30 and in Article 30a and 30b.
The taxpayer shall be obliged to notify the withholding agent of any changes in the facts outlined in
the declaration before the payment of the scholarship for the month in which the change occurred.
11. (repealed)
12. (repealed)
13. The provision of paragraph 1.16(b) shall apply, if the performances received were not recognized
as deductible costs and were incurred:
1) in order to derive revenues; or
2) in order to implement the tasks of organizations and organizational entities operating pursuant to
the provisions of separate acts; or
3) by the agencies (offices) of state local government authority or administration or organizational
entities subordinated to or supervised thereby; or
4) by persons performing civil functions, referred to in Article 13.5, in connection with the
performance of those functions.
14. The exemption, referred to in paragraph 1.19, shall apply to employees, whose place of residence
is located outside of the locality where the work establishment is situated, and the taxpayers do not
avail themselves of the deductible costs, referred to in Article 22.2.3 and 4.
15. The exemption, referred to in paragraph 1.20, shall not apply to remuneration for work received by
the staff in connection with their stay outside of the territory of the state in order to take part in an
armed conflict or to reinforce the troops of the state or allied states, peace-keeping missions,
operations aimed at preventing terrorist acts or their consequences, as well as in connection with
acting as observers in peace-keeping missions of international organizations and multilateral forces,
providing they receive performance exempted from the tax under paragraph 1.83.
16. Own building, apartment or premises, referred to in paragraph 1.32 letter a), shall be a building,
apartment or premises constituting the property or joint property of the taxpayer or the taxpayer holds
the cooperative ownership right to an apartment, the right to a single-family house in a housing
cooperative, or a share in such right.
17. (repealed)
18. (repealed)

Chapter 4. The deductible costs.

Art. 22 [Notion and amount]
1. The deductible costs with respect to income from individual sources shall be all costs incurred in
order to derive revenues, with the exception of costs referred to in Article 23. Costs incurred in foreign
currencies shall be converted into Polish zlotys in accordance with the average exchange rates as
announced by the National Bank of Poland on the date when the cost was incurred. If costs are
denominated in foreign currencies, and there is a difference in the currency exchange rates between
the date of entering those costs in the books and the date of payment, those costs shall be increased or
reduced, as appropriate, by the differences arising from the application of the currency selling rate as
at the date of payment, set by the bank, whose services were used by the person who incurred the cost,
and the application of the average exchange rate as announced by the National Bank of Poland on the
date of entering the costs in the books.
1a. Costs of foreign exchange gains/losses with respect to own funds or cash/cash equivalents
denominated in foreign currencies shall be determined as the difference between the value of those
funds calculated at the selling rate of actual payment and the currency purchasing rate at their receipt,
or the selling rate of currency acquisition, announced, as appropriate, by the bank, whose services
were used by the taxpayer.
1b. The deductible costs shall also be expenses incurred by the employer in order to ensure correct
implementation of the employee pension plan within the meaning of the regulations on employee
pension plans.
1c. For employers being shareholders of employee pension companies deductible costs shall also
include:
1) expenses to cover the costs of operation of employee pension companies;
2) fees charged by the Commission for Supervision of Insurance and Pension Funds, referred to in the
regulations on the organization and functioning of pension funds.
1d. In case of selling gratuitously or partially gratuitously acquired things or rights, as well as other
gratuitously or partially gratuitously acquired performances, in connection with which, pursuant to
Article 11.2-11.2b, income has been determined, the deductible cost with respect to their selling,
allowance having been made for their revaluation in accordance with separate regulations, shall be:
1) the value of revenues specified in Article 11.2 and 11.2a; or
2) the value of revenues specified in Article 11.2b, plus expenses with respect to acquiring partially
gratuitous things or rights, or other performances

- minus the sum total of depreciation write-offs, referred to in Article 22h.1.1.

1e. In case of the acquisition of shares (stocks) in a company or shares in a cooperative in exchange
for a contribution in kind other than an undertaking or an organized part thereof - the deductible cost
with respect to revenues, referred to in Article 17.1.9, shall be determined as at the date of acquisition
of those shares (stocks) as:
1) the initial value of the contribution in kind, revaluated in accordance with separate regulations,
minus the sum total of depreciation write-offs, referred to in Article 22h.1.1, if the contribution in kind
was in the form of fixed assets or intangible assets;
2) the following value:
a) the nominal value of shares (stocks) in a company or shares in a cooperative brought in as a
contribution in kind, when they had been acquired in exchange for a contribution in kind other than an
undertaking or an organized part thereof;
b) determined in accordance with Article 23.1.38, when shares (stocks) in a company or shares in a
cooperative, which are brought in as a contribution in kind, had not been acquired in exchange for a
contribution in kind;
c) determined in accordance with paragraph 1f, when shares (stocks) in a company or shares in a
cooperative, which brought in as a contribution in kind, had been acquired in exchange for a
contribution in kind in the form of an undertaking or an organized part thereof

- if the object of the contribution in kind were shares (stocks) in a company or shares in a cooperative;
3) the costs, not classified as deductible, actually incurred on acquiring taxpayer's assets other than
those mentioned in subparagraph 1 and 2 - if the object of the contribution in kind were those other
assets.
1f. In case of selling shares (stocks) in a company or shares in a cooperative acquired in exchange for
a contribution in kind, as at the date of selling those shares (stocks), the deductible costs shall be
determined in the amount of:
1) the nominal value of acquired shares (stocks) as at the date of their acquisition - if those shares
(stocks) had been acquired in exchange for a contribution in kind other than an undertaking or an
organized part thereof;
2) the value of the undertaking or an organized part thereof, arising from the books of the undertaking,
determined as at the date of the acquisition of those shares (stocks), though not higher than their
nominal value as at the date of acquisition.
1g. In case of selling shares (stocks) acquired as a result of the division, referred to in Article 24.5.7,
the deductible cost of selling shares (stocks) in the acquiring or newly established company shall be
their nominal value determined as at the date of registering the increase of the initial capital of the
acquiring company or as at the date of registering newly established companies.
1h. In case of contracts for renting or leasing things or property rights and similar contracts, if the
renting or leasing party transferred the claims with respect to rents or fees arising from such contracts
to a third person, and those contracts between the parties do not expire, the deductible costs of the
renting or leasing party shall include the discount or consideration paid to the third party.
1i. If in connection with the acquisition of shares (stocks) in exchange for a contribution in kind the
taxpayer incurred expenses connected with the acquisition of those shares (stocks), those expenses
shall be added to the deductible costs, referred to in paragraph 1e.
2. The deductible costs with respect to service-based relationship, employment relationship,
cooperative employment relationship and homework, when:
1) the taxpayer receives revenues from one employer - shall amount to PLN 102,25 per month, and for
tax year not more than PLN 1227;
2) the taxpayer receives revenues simultaneously from more than one employer - may not exceed in
total PLN 1840,77 for the tax year;
3) the place of permanent or temporary residence of the taxpayer is located outside of the locality
where the workplace is situated, and the taxpayer does not receive a separation allowance - shall
amount to PLN 127,82 gr per month, and for the tax year in total not more than PLN 1533,84;
4) the taxpayer receives revenues simultaneously from more than one employer, and the place of
permanent or temporary residence of the taxpayer is located outside of the locality where the
workplace is situated, and the taxpayer does not receive a separation allowance - may not exceed in
total PLN 2300,94 for the tax year.
2a. (repealed)
3. If the taxpayer incurs deductible costs with respect to income from sources of taxable income, and
costs with respect to revenues from other sources, and it is not possible to determine what deductible
costs are related to individual sources, those costs shall be determined in the proportion equal to the
share of revenues from those sources in the total amount of revenues.
3a. The principle, referred to in paragraph 3, shall apply also when part of revenues from the same
source is taxable, and part is tax-free, excluding sources referred to in Article 10.1.1 and 10.1.2.
4. The deductible costs shall be deducted, subject to paragraph 5 and 6, only in the tax year, in which
hey were incurred.
5. For the taxpayers who keep account books (commercial books) deductible costs for income entered
in those books shall be deducted only in the tax year, which they relate to, i.e. deductible are also costs
incurred in the years preceding the tax year, but relating to revenues derived in the tax year and
specified as to type and the amount of costs entered in the books, even though they have not been
incurred yet, if they refer to revenues of a given tax year, unless their entering in the books was not
possible; in that case they shall be deductible in the year when they were incurred.
6. The principle specified in paragraph 5 shall apply also to taxpayers who keep tax books of receipts
and expenses, providing that continuously in each tax year those books are kept in a manner that
allows for separating deductible costs relating only to that tax year.
6a. In order to determine the value of raw materials and materials derived from own plant or animal
production and own forestry used in non-agricultural commercial activities or in special sectors of
agricultural production, the provision of Article 11.2 shall apply, as appropriate.
7. (deleted)
7a. (deleted)
8. The deductible costs shall be write-offs with respect to wear and tear of fixed assets and intangible
assets (depreciation and amortization write-offs) made exclusively in accordance with Article 22a-22o,
taking into account Article 23.
9. The deductible costs for certain revenues shall be determined:
1) with respect to payment for transfer of the proprietary right to an innovation, topography of a
integrated circuit, trademark or design by the first owner - in the amount of 50% of derived revenues;
2) with respect to the license fee for transfer of the right to use an innovation, topography of a
integrated circuit, trademark or design, received in the first year of the duration of a licence from the
first licensing entity with which a licensing agreement was concluded - in the amount of 50% of
derived revenues;
3) with respect to using copyrights by authors and related rights by performing artists, within the
meaning of separate regulations, or the disposal of those rights by them - in the amount of 50% of
derived revenues, with the proviso that those costs are calculated on revenues net of pension and
sickness insurance contributions, referred to in Article 26.1.2 (b), which are assessed on the basis of
those revenues, deducted by the withholding agent in a given month;
3a) (deleted)
4) for titles referred to in Article 13.2, 13.4, 13.6 and 13.8 - in the amount of 20% of derived income,
with the proviso that those costs are calculated on revenues net of pension and sickness insurance
contributions, referred to in Article 26.1.2 (b), which are assessed on the basis of those revenues,
deducted by the withholding agent in a given month;
5) for titles referred to in Article 13.5, 13.7 and 13.9 - in the amount specified in paragraph 2.1, and if
the taxpayer derives the same type of revenues for one of the titles, referred to in Article 13.5, 13.7 and
13.9, from more than one entity, annual deductible costs may not exceed the amount of PLN 1840,77.
10. If the taxpayer provides evidence that deductible costs were higher than those resulting from the
application of the standard percentage, referred to in paragraph 9.1-4, deductible costs shall be
recognized in the amount of costs actually incurred.
11. If annual deductible costs, referred to in paragraph 2, are lower than the expenses on commuting to
or from the workplace by public bus, rail, ferry or municipal public transport, in the annual tax return
those costs may be recognized in the amount of actually incurred expenses, documented exclusively
with periodical tickets made out to the taxpayer's name.
11a. The provisions of paragraph 11 shall not apply to deductible costs relating to the sources of
income referred to in Article 13.5, 13.7 and 13.9.
12. The deductible costs referred to in paragraph 9.3 shall not apply to revenues, referred to in Article
14.
13. The provisions of paragraph 2.3 and 2.4 and paragraph 11 shall not apply when the employee
receives refund of the costs of commuting to the workplace, except when the refunded costs were
recognized as taxable revenues.
Art. 22a [Fixed assets]
1. The following assets, owned or co-owned by the taxpayer, purchased or produced by the taxpayer,
complete and usable as at the date of acceptance for use, shall be depreciated, subject to Article 22c:
1) structures, buildings and premises constituting a separate property;
2) machines, equipment and means of transport;
3) other objects
- with the expected useful life of more than one year, used by the taxpayer for the purposes linked with
the taxpayer's commercial activities and handed over for use under a renting or lease agreement, or an
agreement referred to in Article 23a.1, called fixed assets.
2. Also the following shall be depreciated, subject to Article 22c, regardless of their expected useful
life:
1) investments in third party fixed assets accepted for use, hereinafter called "investments in third
party fixed assets";
2) buildings and structures erected on third party land;
3) assets, referred to in paragraph 1, not owned or co-owned by the taxpayer, used by the taxpayer for
the purposes linked with the taxpayer's commercial activities under an agreement referred to in Article
23a.1, concluded with the owner or co-owners of those assets - if in accordance with the provisions of
Chapter 4a depreciation is written off by the user
-) also called fixed assets;
4) means of sea transport under construction, classified in the Polish Classification of Products and
Services (PKWiU) in category 35.11 "ships", included in branch 1051-1053 of the Systematic
Schedule of Products (SWW) of the Central Statistical Office (Dz.U. of 1997 No. 42, item 264 and of
1999 No. 92, item 1045).
Art. 22b [Intangible assets]
1. The following intangible assets, acquired and fit for commercial use as at the date of acceptance for
use, shall be depreciated, subject to Article 22c:
1) the cooperative ownership right to an apartment;
2) the cooperative ownership right to commercial premises;
3) the right to a single-family house in a housing cooperative;
4) copyright or related proprietary rights;
5) licences;
6) rights to: inventions, patents, trademarks, designs;
7) the value of information relating to knowledge in the area of industry, commerce, science or
organization (know-how)
- with the expected useful life of more than one year, used by the taxpayer for the purposes linked with
the taxpayer's commercial activities and handed over for use under a licensing (sublicensing), renting
or lease agreement, or an agreement referred to in Article 23a.1, called intangible assets.
2. Also the following shall be depreciated, subject to Article 22c, regardless of their expected useful
life:
1) goodwill, if it was generated as a result of acquisition of an undertaking or an organized part thereof
by way of:
a) purchase;
b) acceptance for use against a consideration, and depreciation, in accordance with the provisions of
Chapter 4a, is written off by the user;
2) costs of development work ended with a positive outcome, which may be used for the purposes of
commercial activities of the taxpayer, if:
a) the product or production technology are strictly defined, and the related costs of development work
are assessed in a credible manner; and
b) technical suitability of the product or technology was properly documented by the taxpayer and on
that basis the taxpayer made the decision to manufacture those products or apply the technology; and
c) if it follows from the development work documentation that the costs of development work will be
covered by expected revenues from the sale of those products or application of the technology;
3) assets referred to in paragraph 1, not owned or co-owned by the taxpayer, used by the taxpayer for
the purposes linked with the activities under an agreement referred to in Article 23a.1, concluded with
the owner or co-owners, or parties authorized to use those assets - if in accordance with the provisions
of Chapter 4a depreciation is written off by the user
- also called intangible assets.
Art. 22c [Exclusions] The following shall not be depreciated:
1) land and the right to perpetual usufruct of land;
2) residential buildings together with elevators contained therein or apartments used for running
commercial activities or leased or rented under an agreement, if the taxpayer does not make a decision
to depreciate them;
3) works of art and museum exhibits;
4) goodwill, if it was generated in a manner other than the one described in Article 22b.2.1;
5) assets, which are not used as a result of ceasing of the activities in which those assets were used; in
that case those assets shall not be depreciated from the month following the month, in which those
activities were ceased
- called, as appropriate, fixed assets or intangible assets.
Art. 22d [Assets of the value of up to PLN 3500]
1. Taxpayers may not write off depreciation on assets, referred to in Article 22a and 22b, whose initial
value, determined in accordance with Article 22g, is less than PLN 3500; the expenses incurred for
their acquisition shall then constitute deductible costs in the month of their commissioning.
2. Assets, referred to in Article 22a-22c, excluding assets referred to in paragraph 1, shall be entered in
the record of fixed assets and intangible assets in accordance with Article 22n, not later than in the
month of their commissioning. Any later date of entering shall be considered to be the disclosure of a
fixed asset, referred to in Article 22h.1.4.
Art. 22e [Assets not classified as fixed assets]
1. If taxpayers acquire or generate themselves assets referred to in Article 22a.1 and Article 22b.1,
whose initial value exceeds PLN 3500, and owing to their expected useful life equal to or shorter than
one year do not classify them as fixed assets or intangible assets, and their actual useful life exceeds
one year - taxpayers shall be obliged, in the first month following the month, in which that period of
one year elapsed:
1) classify those assets as fixed assets or intangible assets, entering them in the records at the
acquisition price or manufacturing cost;
2) reduce deductible costs by the difference between the acquisition price or manufacturing cost and
the amount of depreciation to be written off for the period of their hitherto use, calculated for fixed
assets with the application of depreciation rates laid down in the Schedule attached hereto as Annex
No. 1, referred to as "Depreciation Rates Schedule", and for intangible assets - with the application of
principles laid down in Article 22m;
3) apply depreciation rates, referred to in subparagraph 2, throughout the period of writing off
depreciation;
4) pay, by the 20th day of that month, to the fiscal office the amount of interest accrued from the date
of classifying expenses for acquisition of generation of assets as deductible costs until the date, on
which their useful life exceeded one year, and to show the amount of interest accrued in tax returns,
referred to in Article 44.6 and Article 45.1 and 45.1a.2; interest accrued on the difference, referred to
in subparagraph 2, shall amount to 0.1% for each day.
2. The provisions of paragraph 1 shall apply, as appropriate, in case of classifying expenses for
acquisition or manufacture of assets whose initial value exceeds PLN 3500 as deductible costs, and
then classifying those assets as fixed assets or intangible assets within one year from the date of their
acquisition or manufacture; in that case interest shall accrue until the date of classifying them as fixed
assets or intangible assets.
3. If the difference, referred to in paragraph 1.2, is higher than the costs of a given month, the
unaccounted for excess of costs shall be deducted from costs in the following months.
Art. 22f [Basis for depreciation write-offs]
1. Taxpayers, with the exception of those, who as a result to declared bankruptcy involving liquidation
of assets do not run commercial activities, make depreciation write-offs on the initial value of fixed
assets and intangible assets, referred to in Article 22a.1 and 22a.2.1-3 and in Article 22b.
2. Taxpayers who are shipowners, with the exception of those who as a result of declared bankruptcy
involving liquidation of assets do not run commercial activities, may write off depreciation on ordered
sea-going vessels under construction, referred to in Article 22a.2.4.
3. Depreciation shall be written off in accordance with Article 22h-22m, when the initial value of a
fixed asset or intangible asset at the date of acceptance for use is higher than PLN 3500. When the
initial value is equal to or lower than PLN 3500, taxpayers may write off depreciation, subject to
Article 22d.1, in accordance with Article 22h-22m or on a one-off basis - in the month of
commissioning of that fixed asset or intangible asset, or in the following month.
4. If only a part of real property, including a residential building or an apartment, is used for running
commercial activities or rented out or leased - depreciation shall be written off in the amount
determined on the basis of the initial value of real property, building or apartment corresponding to the
proportion of the usable area used for running commercial activities, rented out or leased, to the total
usable area of that real property, building or apartment.
5. Depreciation shall be written off on fixed assets and intangible assets, the ownership of which was
transferred in order to secure a claim, including a loan or credit, by the hitherto owner, including a
borrower.
Art. 22g [Initial value]
1. The initial value of fixed assets and intangible assets, taking into account paragraphs 2-18, shall be:
1) in case of acquisition by way of purchase - their acquisition price;
1a) in case of acquisition against partial consideration - their acquisition price plus the value of
revenues, referred to in Article 11.2b;
2) in case of their manufacture on one's own - the cost of their manufacture;
3) in case of acquisition by way of inheritance, gift or otherwise in a gratuitous manner - the market
value as at the date of acquisition, unless that value is specified in the gift agreement or the agreement
on gratuitous transfer at a lower level;
4) in case of acquisition in the form of the contribution in kind brought into a private partnership or a
personal commercial company - the value of individual fixed assets and intangible assets set by the
participants as at the date of bringing in the contribution or share, however not exceeding their market
value, as at the date of brining in the share.
2. The initial value of goodwill shall be the positive difference between the acquisition price of an
undertaking or an organized part thereof, set in accordance with paragraphs 3 and 5, and the market
value of assets of an undertaking or an organized part thereof purchased, accepted for use against a
consideration or brought into a company, as of, as appropriate, the date of purchase, acceptance for use
against a consideration or bringing into a company.
3. The acquisition price shall be the amount due to the seller, plus the purchase related costs accrued
until the date of turning over the fixed asset or the intangible asset for use, and in particular the costs
of transport, loading and unloading, insurance in transit, assembly, installation and starting of
computer programmes and systems, notarial fees, stamp duties and other charges, interest,
commissions, and minus the goods and services tax, with the exception of case, where in accordance
with separate regulations the goods and services tax is not the input tax or the taxpayer is not entitled
to deduct input tax from the amount output tax or to the tax refund within the meaning of the Goods
and Services Tax Act. In case of import the acquisition price shall include customs and excise duty on
import of assets.
4. The cost of manufacture shall be the value, at the acquisition price, of the following used for the
manufacture of fixed assets: tangible assets and external services used, costs of remunerations for
work and related costs, as well as other costs attributable to the value of the fixed assets manufactured.
The cost of manufacture shall include the value of taxpayer's own work, the work of taxpayer's spouse
and underage children, general management costs, selling costs, as well as other operating costs and
financial costs, in particular interest on loans (credits) and commissions, excluding interest and
commissions accrued until the date of the commissioning of the fixed asset.
5. The acquisition price, referred to in paragraph 3, and the cost of manufacture, referred to in
paragraph 4, shall be adjusted for foreign exchange gains/losses accrued until the date of
commissioning of the fixed asset or the intangible asset, in accordance with Article 22.1 and 22.1a.
6. The initial value of assets acquired in the manner specified in paragraph 1.3 and 1.4, acquiring
assembly, shall be increased by the expenses incurred for their assembly.
7. The initial value of an investment in third party fixed assets, as well as buildings and structures
erected on third party land shall be determined applying, as appropriate, paragraphs 3-5.
8. If it is impossible to determine the acquisition price of fixed assets or parts thereof acquired by
taxpayers before the date of starting the inventory or making the record, referred to in Article 22n, the
initial value of those assets shall be assumed in the amount arising from the valuation made by the
taxpayer, taking into account market prices of fixed assets of the same kind in December of the year
preceding the year of starting the inventory or making the record, as well as their condition and degree
of wear.
9. If taxpayer cannot determine the cost of manufacture, referred to in paragraph 4, the initial value of
fixed assets shall be determined in the amount specified, with account being take of market prices,
referred to in paragraph 8, by an expert appointed by the taxpayer.
10. Taxpayers may determine the initial value of residential buildings or apartments: rented, leased or
used by the owner for the purposes of their commercial activities, assuming in each tax year the value
of the number of square meters of the usable area of that building or apartment rented, leased or used
by the owner multiplied by PLN 988, the usable area being the area adopted for the purposes of real
property tax.
11. In case the asset is co-owned by the taxpayer, the initial value of that asset shall be determined
with respect to such part of its value, which corresponds to the taxpayer's share in the ownership of
that asset; this principle shall not apply to assets constituting joint marital property, unless the spouses
use that asset in separately run commercial activities.
12. In case of a transformation, as well as consolidation or division of entities pursuant to separate
regulations - the initial value of fixed assets and intangible assets shall be determined in the amount of
the initial value referred to in the inventory (record) of the transformed, divided or consolidated entity.
13. The provision of paragraph 12 shall apply, as appropriate in case of:
1) the resumption of operations by an entity after a break of more than 3 years;
2) the transformation of business activities consisting in the consolidation or division of previous
entities or the change of partners in an non-incorporated partnership;
3) the change of activities performed independently by either or separately by each of the spouses into
activities performed in the name of both spouses;
4) the change of activities performed in the name of both spouses into activities performed
independently by either or separately by each of the spouses;
5) the change of activities performed independently by either of the spouses into activities performed
independently by the other of the spouses
- if before the break or change the assets had been entered into the inventory (record).
14. In case of acquisition of an by way of purchase or acceptance for use against a consideration of an
undertaking or an organized part thereof, the total initial of acquired fixed assets and intangible assets
shall be:
1) the sum total of their market values in case of the positive goodwill determined in accordance with
paragraph 2;
2) the difference between the acquisition price of an undertaking or an organized part thereof,
determined in accordance with paragraphs 3 and 5, and the value of assets that are neither fixed assets
or intangible assets, in case of absence of positive goodwill.
15. In case of acquisition of an undertaking or an organized part thereof by way of inheritance or gift,
the total initial value of acquired fixed assets and intangible assets is the sum total of their market
values, though not higher than the difference between the value of that undertaking or an organized
part thereof and the value of assets that are neither fixed assets or intangible assets determined for the
purposes of the inheritance and gift tax.
16. The provisions of Article 19 shall apply, as appropriate, to determination of the initial value of
individual fixed assets and intangible assets in accordance with paragraph 1.3 and 1.4 and paragraphs
2, 8, 9 and 14-15.
17. If fixed assets were improved as a result of alteration, expansion, reconstruction, adaptation or
modernization, the initial value of those assets, determined in accordance with paragraphs 1, 3-9 and
11-15, shall be increased by the sum total of expenses on their improvement, including also expenses
for acquiring components or peripherals, whose unit acquisition price is larger than PLN 3500. Fixed
assets shall be considered improved, when the sum total of expenses incurred on their alteration,
expansion, reconstruction, adaptation or modernization in a given tax year is larger than PLN 3500
and those expenses result in the growth of the utility value over the value as at the date of acceptance
of fixed assets for use, measured in particular by their useful life, production capacity, quality of
products generated with the improved fixed assets and costs of their operation.
18. The initial value of property rights, including licenses and copyrights, shall be the acquisition price
of those rights; if the consideration (royalties) arising from the license agreement or the agreement
concerning transfer of other property rights depends on the amount of revenues under the licenses or
rights obtained by the licensee or transferee - that part of the consideration shall be excluded from the
determination of the initial value of property rights, including licenses.
19. (deleted)
20. In case of the permanent detachment from a given fixed asset of a component or peripheral, the
initial value of that asset shall be reduced, as from the month following the detachment, by the
difference between the acquisition price (manufacturing cost) of the detached part and the sum total of
that part's depreciation write-offs calculated by the same depreciation method and depreciation rate
that has been used for calculating depreciation write-offs on that fixed asset.
21. If the detached part is later attached to another fixed asset, the initial value that other assets shall be
increased in the month of attachment by the difference, referred to in paragraph 20.
22. The provision of paragraph 12 shall apply, if the separate regulations provide that the entity
formed as a result of the transformation, division or consolidation of the existing entity to which a part
of the assets of the divided entity have been transferred as a result of spin-off, shall assume all rights
and obligations of the entity with changed legal form, consolidated or divided.
Art. 22h [Straight line method]
1. Depreciation shall be written off:
1) on the initial value of fixed assets or intangible assets, subject to Article 22k, beginning with the
first month following the month, in which that fixed asset or intangible asset was entered into the
inventory (record), subject to Article 22e, until the end of the month, in which the sum total of
depreciation write-offs is balanced with their initial value or in which they were put to liquidation,
sold or or they were found depleted; the sum total of depreciation write-offs shall include also write-
off which, in accordance with Article 23.1, are not considered to be deductible costs;
2) on sea-going vessels under construction, referred to in Article 22a.2.4, ordered by the shipowner,
beginning with the first month following the month, in which the shipowner incurred expenses
(including payment of advances) on the construction of vessels in the amount of at least 10% of the
contract value separately for each vessel; the contract value, referred to in this subparagraph, shall be
determined as at the date of conclusion of the contract for the construction a a given vessel;
3) on seasonally used fixed assets and intangible assets within the period of their use; in that case the
amount of a monthly write-off shall be determined by dividing the annual amount of depreciation
write-offs by the number of months in the season or by 12 months in a year;
4) on disclosed fixed assets so far not included in the inventory - beginning with the month following
the month, in which those assets were entered into the inventory.
2. Taxpayers, subject to Article 22l and 22, shall choose one of the depreciation methods laid down in
Article 22i-22k for individual fixed assets prior to starting their depreciation; the selected method shall
continue to be applied until a given fixed assets is fully depreciated.
3. Entities set up as a result of a transformation, division or consolidation of entities, referred to in
Article 22g.12 or 22g.13, shall write off depreciation taking into account the amounts written off so far
and continue to apply the depreciation method adopted by the transformed, divided or consolidated
entity, account being taken of Article 22i.2-22i.7.
4. Taxpayers may write off depreciation in equal monthly instalments or equal quarterly instalments or
on a one-off basis at the end of the tax year, account being taken of Article 22i. The amount of
depreciation on fixed assets and intangible assets written off in the first tax year, in which those assets
were entered into the inventory, may not exceed the value of depreciation for the period from their
entry to the inventory (record) until the end of that tax year.
Art. 22i [Depreciation rates Increase]
1. Depreciation on fixed assets, subject to Article 22j-22, shall be written off at depreciation rates
specified in the Depreciation Rates Schedule and rules, referred to in Article 22h.1.1.
2. Taxpayers may increase rates specified in the Depreciation Rates Schedule:
1) for buildings and structures used in the following conditions:
a) deteriorated - with the application of coefficients not higher than 1.2;
b) poor - with the application of coefficients not higher than 1.4;
2) for machines, equipment and vehicles, with the exception of sea-going vessels, used more
intensively as compared with average conditions or requiring special technical efficiency - with the
application of coefficients not higher than 1.4;
3) for machines and equipment included in categories 4-6 and 8 of the Classification of Fixed Assets
(KT) issued pursuant to separate regulations, hereinafter referred to as "the Classification", subject to
fast technological advancement - with the application of coefficients not higher than 2.0.
3. In case of the occurrence or cessation of conditions justifying the increase of rates, referred to in
paragraph 2.1 and 2.2, those rates shall be increased or reduced from the month following the month,
in which the circumstances underlying those changes occurred.
4. Taxpayers may increase rates for fixed assets referred to in paragraph 2.3 or cease to apply them
beginning with the month following the month, in which those assets were entered in the inventory, or
from the first month of each following tax year.
5. Taxpayers may reduce rates for individual fixed assets specified in the Depreciation Rates Schedule.
Rates shall be changed beginning with the month, in which those assets were entered in the inventory,
or from the first month of each following tax year.
6. In case of increase of depreciation rates specified in the Depreciation Rates Schedule with the
application of coefficients specified in paragraph 2, one selected coefficient should be used for
individual fixed assets, by which the specific depreciation rate for a given fixed asset, taken from the
Depreciation Rates Schedule, shall be multiplied.
7. Explanations concerning the conditions for the use of buildings and structures, determination of
special technical efficiency of machines, equipment and vehicles and equipment subject to fast
technological advancement, referred to in paragraph 2, are contained in the notes to the Depreciation
Rates Schedule.
Art. 22j [Individual depreciation rates]
1. Subject to Article 221, taxpayers may individually set depreciation rates for used or improved fixed
assets, for the first time entered in the inventory of a given taxpayer, with the proviso that the
depreciation period may not be shorter than:
1) for fixed assets classified in categories 3-6 and 8 of the Classification:
a) 24 months - when their initial value is less than PLN 25 000;
b) 36 months - when their initial value is above PLN 25 000 and is less than PLN 50 000;
c) 60 months - in other cases;
2) for vehicles, including passenger cars, referred to in Article 23.3a - 30 months;
3) for buildings (premises) and structures - 10 years, with the exception of buildings included in types
103 and 109 of the Classification, permanently fixed to the ground, commodity stands with the cubic
measurement of over 500 m3, bungalows and substitute buildings, for which that period may not be
shorter than 36 months.
2. Fixed assets, referred to in paragraphs 1.1 and 2, shall be deemed as:
1) used - if the taxpayer proved that before they were purchased they had been used for at least 6
months, or
2) improved - if before entering them in the inventory the costs incurred by the taxpayer for their
improvement accounted for at least 20% of their initial value.
3. Fixed assets, referred to in paragraph 1.3, shall be deemed as:
1) used - if the taxpayer proved that before they were purchased they had been used for at least 60
months, or
2) improved - if before entering them in the inventory the costs incurred by the taxpayer for their
improvement accounted for at least 30% of their initial value.
4. Taxpayers may individually set depreciation rates for investments in third party fixed assets
accepted for use, with the proviso that for:
1) investments in third party buildings (premises) or structures - the depreciation period may not be
shorter than 10 years,
2) investments in third party fixed assets other than those referred to in subparagraph 1 - the
depreciation period shall be determined in accordance with the principles laid down in paragraphs 1.1
and 2
5. (deleted)
Art. 22k [Degressive method]
1. Depreciation may be written off the initial value of machines and equipment classified in categories
3-6 and 8 of the Classification and vehicles, with the exception of passenger cars, referred to in Article
23.3a, in the first tax year of their use with the application of rates laid down in the Depreciation Rates
Schedule reduced, subject to paragraph 2, by the coefficient of not more than 2.0, and in the following
tax years - their initial value reduced by the hitherto depreciation write-offs, determined as at the
beginning of the subsequent years of their use. Beginning with the tax year, in which so determined
annual depreciation amount would be lower than the annual depreciation amount calculated with the
method referred to in Article 22i.1, taxpayers continue to write off depreciation in accordance with
Article 22i.
2. In case of use of fixed assets, described in paragraph 1, in the undertaking of a given taxpayer
located in a community specially threatened with high structural unemployment or in a community
threatened with recession and social degradation, whose list shall be determined by the Council of
Ministers pursuant to separate regulations - the rates included in the Depreciation Rates Schedule may
be increased with the application of coefficients not higher than 3.0, calculating depreciation write-offs
in accordance with the principle laid down in paragraph 1.
3. If in the course of the tax year:
1) the community is excluded from the list, referred to in paragraph 2;
2) or the taxpayer has no longer his seat in the community, referred to in paragraph 2
- the taxpayer may continue to apply increased depreciation rates until the end of that year.
4. Depreciation may be written off the initial value of brand-new fixed assets, classified in categories
3-6 of the Classification, in the first tax year in which those assets were entered in the inventory, in the
amount of 30% that value.
5. Should the amount of depreciation write-offs determined in accordance with paragraph 4 be lower
than write-offs calculated in accordance with paragraph 1, then taxpayers may write off depreciation at
the rate from the Depreciation Rates Schedule increased by a coefficient of not more than o 3.0. In that
case the annual amount of depreciation shall be determined in proportion to the number of full months
remaining until year's end from the time the assets were entered in the inventory.
6. Taxpayers may write off depreciation, as referred to in paragraphs 4 and 5, at a time, not earlier than
in the month in which fixed assets were entered in the inventory, or apply the principles laid down in
Article 22h.4. In the following tax year taxpayers depreciation shall be written off the initial value in
accordance with paragraph 1 or Article 22i.
Art. 22l [Depreciation of sea-going vessels]
1. Depreciation on sea-going vessels under construction, referred to in Article 22a.2.4, shall be written
off by monthly instalments at depreciation rates set for sea-going vessels in the Depreciation Rates
Schedule.
2. Depreciation write-offs on sea-going vessels, referred to in paragraph 1, shall be calculated on the
basis of that part of the contract value, referred to in Article 22h.1.2, increased by subsequent
expenditures (advances) incurred for the construction of a given vessel; those expenditures
successively increase the depreciation base in the month following the month in which they were
incurred.
3. Depreciation shall be written off, as referred to in paragraph 1, until the end of the month in which a
given vessels is commissioned; if no contract transferring ownership of the ordered vessel onto the
shipowner is concluded, the shipowner shall be obliged to reduce deductible costs by depreciation
write-offs made, calculated in accordance with paragraphs 1 and 2, in the month in which the contract
was abandoned.
4. Commissioned sea-going vessels shall be depreciated in accordance with Article 22i. The sum total
of depreciation written off in accordance with Article 22i and depreciation written off, as referred to in
paragraph 2, must not exceed the initial value of a given sea-going vessel.
Art. 22 [Depreciation of third party assets]
1. Taxpayers depreciate fixed assets and intangible assets, received for use against a consideration
under agreements concluded pursuant to the commercialization and privatization regulations, in
accordance with the principles laid down in Article 22h.1, if those agreements provide for the right of
the user to buy those assets for a price specified in those agreements. Depreciation rates shall be
determined, account being taken of Articles 22i and 22m, proportionately to the period arising from
the agreement, with the exception of fixed assets and intangible assets with a shorter depreciation
period than the effective period of the agreement.
2. In case of acquisition of fixed assets or intangible assets received for use against a consideration
under agreements, referred to in paragraph 1, before the effective period of the agreement expired,
taxpayers continue to depreciate those assets in accordance with the principles and at rates specified in
paragraph 1.
3. In case of lengthening the effective period of the agreement concluded pursuant to the regulations,
referred to in paragraph 1, depreciation rates shall be reduced proportionately to the period of
extension of the effective period of the agreement, with the exception of fixed assets or intangible
assets whose depreciation period is shorter than the effective period of the agreement; that principle
shall apply exclusively to depreciation rates applied from the month following the month in which the
agreement was amended.
4. Fixed assets or intangible assets, transferred for use under agreements other than those referred to in
paragraph 1, shall be depreciated by the financing or the using party, as appropriate, in accordance
with the principles laid down in Article 22h-22k and Article 22m, account being taken of the
provisions of Chapter 4a.
5. If agreements, other than those referred to in paragraph 1, concern fixed assets classified in category
3-6 of the Classification and were concluded for a period of at least 60 months, and in accordance with
the provisions of Chapter 4a depreciation is written off by the using party, the taxpayer my apply the
principles laid down in paragraphs 1-3.
6. If in accordance with the provisions of Chapter 4a depreciation is written off by the using party, and
if the agreements, referred to in paragraph 4 or 5, are amended, expire or are terminated, and as a
result thereof the ownership of fixed assets or intangible assets is not transferred onto the using party,
taking back those assets the owner shall determine their initial value, in accordance with Article 22g,
prior to concluding the first leasing agreement, reduced by the repayment of the initial value referred
to in Article 23a.7 and the sum total of depreciation write-offs, referred to in Article 22h.1.1, made by
the owner.
Art. 22m [Depreciation of intangible assets - period]
1. Subject to paragraphs 2 and 3 and Art. 22.1-22.3, the depreciation period for intangible assets may
not be shorter than:
1) for software licenses (sublicenses) and copyright - 24 months;
2) for distribution of movies and broadcasting of radio and TV programs - 24 months;
3) for costs incurred on completed development work - 36 months;
4) for other intangible assets - 60 months.
2. Should the agreed period of use of property rights, referred to in paragraph 1.2, be shorter than the
period laid own in that provision, taxpayers may depreciate those rights within the agreed period.
3. Taxpayers shall set depreciation rates for individual intangible assets for the entire depreciation
period prior to starting depreciating them.
4. The cooperative ownership right to an apartment, the cooperative right to commercial premises and
the right to a single-family house in a housing cooperative shall be depreciated at the annual
depreciation rate of 2,5%; determining the initial value of those rights taxpayers may apply the
principle laid down in Article 22g.10, with the proviso that in that case the annual depreciation rate
shall amount to 1,5%.
Art. 22n [Inventory of fixed assets]
1. Taxpayers keeping, in accordance with the provision of the Accounting Act, account books shall be
obliged to include in the inventory of fixed assets and intangible assets information necessary to
calculate the amount of depreciation write-offs in accordance with Article 22a-22m.
2. Taxpayers keeping the tax book of receipts and expenses shall be obliged to keep the inventory of
fixed assets and intangible assets containing, subject to paragraph 3, at least:
1) ordinal number;
2) date of acquisition;
3) date of acceptance for use;
4) description of an acquisition document;
5) description of the fixed asset or intangible asset;
6) KT code;
7) initial value;
8) depreciation rate;
9) depreciation amount for a given tax year and incrementally for the depreciation period, also when
the asset had been at any time entered in the inventory (record) and subsequently crossed out and re-
entered;
10) present initial value;
11) present amount of depreciation;
12) improvement value increasing the initial value;
13) date of liquidation and reason thereof or the date of sale.
3. Residential buildings, apartments and the cooperative ownership right to an apartment, the
cooperative right to commercial premises, the right to a single-family house in a housing cooperative,
whose initial value is determined in accordance with Article 22g.10, shall not be subject to entry in the
inventory.
4. Fixed assets and intangible assets shall be entered in the inventory at the latest in the month of their
commissioning; Any later date of entering shall be considered to be the disclosure of a fixed asset,
referred to in Article 22h.1.4.
5. Should the form of taxation be changed, opening the inventory, referred to in paragraph 2, taxpayers
shall include in it depreciation for the period of taxation in the form of lump income tax.
6. Should there be no inventory of fixed assets and intangible assets, depreciation write-off shall not
constitute deductible costs.
Art. 22o [Revaluation of fixed assets]
1. The minister competent for public finance shall specify, by way of an ordinance, the procedure and
times for revaluation of fixed assets, referred to in Article 22a, the initial value of assets, referred to in
Article 22d.1, the amount referred to in Article 22g.10 for calculating the initial value of residential
buildings or apartments, the unit acquisition price of components and peripherals, referred to in Article
22g.17, and the initial value of fixed assets, referred to in Article 22j.1.1 letters (a) and (b), if the
capital outlays growth index within three quarters of the year preceding the tax year as compared with
the similar period of previous year exceeds 10%.
2. Capital outlays growth indices shall be announced by the President of the Central Statistical Office
every quarter.
Art. 23 [Expenses not treated as costs]
1. The following expenses shall not be treated as deductible costs:
1) expenses on:
a) acquisition of land or the right of perpetual usufruct of land, with the exception of charges for
perpetual usufruct of land;
b) acquisition or internal manufacture of fixed assets and intangible assets, other than those referred to
in letter (a), including also fixed assets included in the acquired undertaking or organized parts thereof.
c) improvements of fixed assets, which in accordance with Article 22g.17 increase the value of fixed
assets used as the base for calculating depreciation

- however, those expenses, updated in accordance with separate regulations, reduced by the sum total
of depreciation write-offs, referred to in Article 22h.1.1, shall be treated as deductible costs for
determining income from selling things described in Article 10.1.8 (d), and when selling things and
rights is part commercial activities, as well as in case of selling assets related to commercial activities,
referred to in Article 14.2.1, regardless of when they have been incurred.

2) (deleted)
3) (deleted)
4) the part of depreciation with respect to the use of a passenger car, written off in accordance with the
principles laid down in Article 22a-22o, determined on the value of the car exceeding the equivalent of
EUR 20 000 converted into PLN at the average EUR rate of exchange announced by the National
Bank of Poland as at the date of giving the car for use;
5) the part of losses in fixed assets and intangible assets covered by the sum total of depreciation
write-offs, referred to in Article 22h.1.1;
6) losses incurred as a result of liquidation of not fully depreciated fixed assets, if those assets ceased
to be economically useful owing to the change of commercial activities;
7) write-offs and contributions to various funds established by the taxpayer; however, the following
shall be treated as deductible costs:
a) basic write-offs and contributions to those funds, if the duty or possibility to establish them and
charge to costs is laid down in separate acts;
b) write-offs and increases, which within the meaning of the regulations concerning internal social
benefits funds are charged to the employer's operational costs, if the money equivalent of those write-
offs an d increases have been paid to the account of the Fund;
8) expenses on:
a) repayment of loans (credits), with the exception of capitalized interest on those loans (credits);
b) repayment of other commitments, including those with respect to guarantees and warranties
granted;
c) retirement of capital having connection with the establishment (acquisition), expansion or
improvement of a source of revenues;
9) interest on own capital invested by the taxpayer in a source of revenues;
10) the value of own work of taxpayers, their spouses and underage children, and in case of
conducting activities in the form of a private partnership or a personal commercial company - also
spouses and underage children of partners;
11) gifts and donations of any kind;
12) income tax, inheritance tax and gift tax;
13) one-time compensations with respect to accidents at work and occupational diseases in the amount
specified by a competent minister and the additional insurance premium as a result of worsened
working conditions;
14) costs of enforcement related to non-performance of the obligations;
15) fines and financial penalties adjudged as a result of penal, penal fiscal, administrative and petty
offence proceedings, as well as interest on those fines and financial penalties;
16) penalties, charges and damages as well as interest thereon with respect to:
a) non-observance of environmental regulations;
b) non-performance of orders of competent regulatory and control authorities concerning negligence
with respect to work safety and hygiene;
16a) the additional product fee, referred to in Article 17.2 of the Act of 11 May 2001 concerning
entrepreneurs' duties in the area of certain waste management and on product fees and deposit fees
(Dz.U. No. 63, item 639 and of 2002 No. 113, item 984), with the proviso that the deductible cost is
the product fee, referred to in Article 12.2;
17) debts written off as overdue;
18) interest for default with respect to budgetary dues and other dues, to which the provisions of the
Taxation Act of 29 August 1997 (Dz.U. No. 137, item 926 and No. 160, item 1083, of 1998 No. 106,
item 668 and of 1999 No. 11, item 95 and No. 92, item 1062) are applicable;
19) contractual penalties and compensations for defects of goods delivered, work and services
performed and a delay in delivering defect-free goods or a delay in eliminating defects of goods or
work and services performed;
20) debts written off as unrecoverable, with the exception of such unrecoverable debts, which,
pursuant to Article 14, had been previously booked as revenues due and the unrecoverability of which
has been proved as credible;
21) revaluation write-offs, with the proviso that the deductible costs are revaluation write-offs on
receivables, described in the Accounting Act, with respect to that part of receivables which, pursuant
to Article 14, had been previously booked as revenues due and the unrecoverability of which has been
proved as credible under Article 3;
22) provisions, if the duty to establish and charge them to costs does not arise from separate acts;
however, provisions established in accordance with the Accounting Act shall not be treated as
deductible costs;
23) the part of entertainment and advertising costs exceeding 0,25% of revenues, unless advertising is
carried out in mass media or otherwise publicly;
24) (deleted)
25) additional amounts, which in accordance with price regulations should be paid to the state budget;
26) additional amounts of annual fees for failing to build up or otherwise develop land within certain
period of time, specified in the regulations on real property management;
27) loans extended, including lost;
28) (deleted)
29) contributions, referred to in Article 21.1 and in Article 23 of the Act on occupational
rehabilitation;
30) contributions to organizations the membership of which is not mandatory for the taxpayer, with
the exception of:
a) contributions of taxpayers conducting commercial activities in the area of tourism, rest, sport and
recreation to the Polish Tourist Organization;
b) contributions to organizations affiliating entrepreneurs and employers operating under separate acts
- up to the total amount not exceeding in the tax year the amount corresponding to 0,15% the amount
of remunerations paid in the preceding tax year, constituting a base for assessment of social security
contributions; if the entrepreneur did not pay those remunerations, the amount of contributions
included in deductible costs in the tax year may not exceed the amount corresponding with the amount
of PLN 114;
31) deductible costs with respect to sources located in the territory of the Republic of Poland or
abroad, if income from those sources is not taxable at all or are exempted from income tax;
32) accrued though unpaid or cancelled interest on commitments, including also loans (credits);
33) interest, commissions and exchange rate differences on loans (credits) increasing the costs of
investment projects in the course of their implementation;
34) losses from selling debts, unless the debt had been previously booked, pursuant to Article 14, as
income due;
35) incurred costs of discontinued investment projects;
36) expenses incurred on behalf of employees with respect to their use of cars for business purposes:
a) in order to go on a business trip (long-distance trips) in the amount exceeding the amount calculated
at the rates per one kilometre of mileage;
b) for local trips - in the amount exceeding the amount of a monthly allowance or in the amount
exceeding the rates per one kilometre of mileage

- specified in separate regulations issued by a competent minister;

37) social security and Labour Fund contributions, and contributions to other targeted funds
established under separate acts - with respect to awards and bonuses paid in cash or securities from
income after taxation with income tax;
38) expenses on receipt or acquisition of shares in a cooperative, shares or stocks in an incorporated
company and other securities, as well as expenses on acquisition of participation titles or participation
units in capital funds; however, such expenses shall be the deductible costs when determining income
from selling those shares, stocks and other securities, including income with respect to redemption of
securities by the issuer, as well as retirement of participation titles or participation units in capital
funds;
38a) expenses related to acquisition of derivative financial instruments - until the rights under those
instruments are exercised, or the exercise of rights under those instruments is waived, or they are sold
- with the proviso that, in accordance with Article 22g.3 and 22g.4, those expenses do not increase the
initial value of fixed asset and intangible assets;
39) (deleted)
40) remitted loans, if the remittal is not connected with bankruptcy proceedings involving the
possibility to enter into an arrangement within the meaning of the bankruptcy and restructuring law;
41) remitted debts, with the exception of those which had been previously, under Article 14, booked as
revenues due;
42) employer's expenses on social activities, referred to in the regulations concerning the company
social benefits fund; however, holiday benefits paid in accordance with the regulations concerning the
company social benefit fund shall be treated as deductible costs;
43) goods and services tax, with the proviso that the following shall be treated as deductible costs:
a) input tax:

- if the taxpayer is exempt from the goods and services tax or purchased goods and services in order to
produce or resell goods or perform services exempt from goods and services tax;

- that part of the goods and services tax, as to which in accordance with the goods and services tax
regulations the taxpayer is not entitled to reduce the amount or to the refund of the goods and services
tax difference - if input goods and services tax does not increase the value of a fixed asset or an
intangible asset;
b) output tax in case of:

- import of services and intracommunity acquisition of goods, if it does not constitute input tax within
the meaning of the goods and services tax regulations; however, the part of output tax exceeding the
amount of tax on acquisition of those goods and services, which might constitute input tax within the
meaning of the goods and services tax regulations shall not be treated as deductible cost;

- transfer or use by the taxpayer of goods or performance of services for entertainment and advertising
purposes, calculated in accordance with separate regulations;

c) the amount of goods and services tax not included in the initial value of fixed assets and intangible
assets, depreciable in accordance with Article 22a-22o, or concerning things or rights other than fixed
assets or intangible assets subject to those depreciation - the part thereof which had been adjusted to
reduce tax deducted in accordance with Article 91 of the Goods and Services Tax Act;
44) losses incurred as a result of excessive wastage or culpable shortage of excise goods and excise
duty on that wastage or shortage;
45) write offs with respect to the use of fixed assets and intangible assets made, in accordance with the
principles laid down in Article 22a-22o, from the part of their value corresponding with the expenses
incurred for acquisition or own production of those assets or intangible assets, deducted from the
taxation base or refunded to the taxpayer in any form;
45a) depreciation written off the initial value of fixed assets and intangible assets:
a) acquired free of charge, with the exception of those acquired by way of inheritance or gift, if:

- that acquisition does not generate revenues as a result of free- -of-charge receipt of things or rights;
or

- income generated therefrom is exempt from income tax; or

- the acquisition generates income, with respect to which taxation has been waived under separate
regulations;

b) if before 1 January 1995 they were acquired but not included in fixed assets or intangible assets;
c) given away for use free of charge, with the exception of real property - for the month, during which
these assets were given away for use free of charge;
45b) depreciation written off from the initial value of intangible assets brought into the company in the
form of the contribution in kind, being equivalent to information obtained with respect to expertise in
the area of industry, trade, science or organization (know-how);
46) the part of expenses incurred classified as deductible costs, subject to subparagraph 36, with
respect to the use of a passenger car not entered in the inventory of fixed assets, including a car owned
by a person conducting commercial activities, for the needs of taxpayer's commercial activities,
exceeding the amount resulting from multiplying the number of kilometres actually ran by the vehicle
by the rate per one kilometre of mileage, referred to in separate regulations issued by a competent
minister; in order to determine the actual mileage the taxpayer shall be obliged to keep an inventory of
vehicle's mileage;
47) passenger car insurance premiums in the amount exceeding their part set in the same proportion
that the equivalent of EUR 20 000, converted into Polish zlotys at the selling rate of exchange of
foreign currencies announced by the National Bank of Poland as at the date of conclusion of the
insurance contract, constitutes in relation to the car's value accepted for insurance;
48) losses incurred as a result of the loss or liquidation of cars and the costs of their post-accident
repairs, if the cars were not covered by non-mandatory insurance;
49) expenses incurred on purchasing gradually wearing out tangible assets of an undertaking, not
classified in accordance with separate regulations as fixed assets - in case of stating that those assets
are not used for the needs of conducted commercial activities, but they serve personal purposes of the
taxpayer, employees or other persons, or without justification are found outside of the undertaking's
premises;
50) sanction fees, which in accordance with separate regulations are payable to the state budget or
budgets of local government units;
51) the part of maintenance costs of company social facilities covered from the internal social benefits
fund;
52) the part of the value of per diems for business trips of persons conducting commercial activities
and their collaborators exceeding the value of per diems to which employees are entitled, specified in
separate regulations issued by a competent minister;
53) (deleted)
54) losses (costs) incurred as a result of prepayments (advances, down payments) lost in connection
with non-performance of a contract;
55) payments, benefits and other dues as specified in Article 12.1 and 12.6, Article 13.2 and 13.4-13.9
and in Article 18, as well as social security cash benefits payable by the employer, which have not
been paid, performed or made available;
55a) the part of unpaid social security (ZUS) contributions, subject to subparagraph 37, specified in
the Act of 13 October 1998 on the Social Security System (Dz.U. No. 137, item 887, with later
amendments), which is financed by the contributions' withholding agent;
56) expenses and costs financed directly from income (revenues), referred to in Article 21.1.46,
21.1.47a, 21.1.47c, 21.1.47d and Article 116, and Article 122;
57) premiums paid by the employer with respect to insurance contracts concluded or renewed on
behalf of employees, with the exception of contracts concerning category 1, 3 and 5 of Class I and
category 1 and 2 of Class II risks listed in the Annex to the Insurance Act of 22 May 2003 (Dz.U. No.
124, item 1151) if the beneficiary is not the employer and within 5 years from the end of the calendar
year when the insurance contract was concluded or renewed it excludes:
a) payment of the surrender value;
b) possibility of assuming obligations secured by rights under the contract;
c) payment for survival until the age specified in the contract;
58) health insurance premiums paid in the tax year by the taxpayer in accordance with the regulations
on rendering health care services financed with public funds;
59) additional fee imposed by the Social Security Company under the regulations pertaining to the
social security system;
60) costs connected with financing health care services by the employer on behalf of employees, with
the exception of the costs incurred for health care services, which the employer is obliged to pay under
the provisions of the Labour Code and other acts.
2. The debts, referred to in paragraph 1.20, shall be the debts whose unrecoverability has been
documented with:
1) a decision of unrecoverability, accepted by the creditor as corresponding with the facts, issued by a
competent enforcement authority, or
2) court decision:
a) dismissing the petition in bankruptcy involving liquidation of all assets where the assets of the
insolvent debtor are not sufficient to cover the costs of the proceedings; or
b) discontinuing the bankruptcy proceedings involving liquidation of all assets in a situation referred
to in letter (a); or
c) terminating the bankruptcy proceedings involving liquidation of all assets; or
3) a report compiled by the taxpayer stating that the expected costs of the judiciary process and
enforcement connected with vindication of claim would be equal to or in excess of that amount.
3. The unrecoverability of debts, in the situation referred to in paragraph 1.21, shall be considered as
rendered credible in particular when:
1) the debtor has been crossed out from the commercial register, put in liquidation or declared
bankrupt involving liquidation of assets; or
2) bankruptcy proceedings with a possibility of concluding an arrangement within the meaning of the
bankruptcy and rehabilitation regulations have been initiated or arrangement proceeds within the
meaning of regulations concerning financial restructuring of companies and banks have been initiated
at debtor's request; or
3) the claim has been adjudged by a valid court ruling and referred for enforcement; or
4) the claim has been questioned by the debtor in court.
3a. Whenever a passenger car is mentioned in paragraph 1 - this means any car that has not been type
approved by the manufacturer or importer as requested for cars other than passenger cars and whose
maximum authorized payload is less than 500 kgs.
3b. Paragraph 1.46 shall not apply to passenger cars used under a lease agreement, referred to in
Article 23a.1.
3c. Paragraph 1.43(c) shall apply, as appropriate, should the right to deduct input tax from output tax,
referred to in Article 91.7 of the Goods and Services Tax Act, change.
3d. Paragraph 1.55a shall apply, as appropriate, subject to paragraph 1.37, to contributions to the
Labour Fund and the Guaranteed Employee Benefits Fund.
4. Whenever the rate per one kilometre of vehicle's mileage is mentioned in paragraph 1, it means the
rate set for passenger cars, taking into account, as appropriate, their engine capacity.
5. Vehicle's mileage, referred to in paragraph 1.36 and 1.46, should be, excluding cash allowance,
documented in the vehicle's mileage records certified by the taxpayer at the end of each month.
Vehicle's mileage records shall be kept by the person using that vehicle. In case of an absence of such
records, expenses incurred by the taxpayer with respect to the use of cars for taxpayer's needs shall not
be treated as deductible costs.
6. The minister competent for public finance shall specify, by way of an ordinance, the maximum
amount of contributions paid by entrepreneurs conducting commercial activities in the area of tourism,
rest, sport and recreation in favour of the Polish Tourism Organization, which shall be treated as the
deductible cost.
7. The vehicle's mileage record, referred to in paragraph 5, should provide at least the following data:
surname, first name and address of vehicle user, registration number and engine capacity of the
vehicle, serial number of entry, date and purpose of the trip, description of route (place of departure -
destination), actual mileage, rate per one kilometre of mileage, the amount resulting from
multiplication of actual mileage and the rate per one kilometre, taxpayer's (employer's) signature and
their data.

Chapter 4a. Taxation of parties to a lease agreement.

Art. 23a [Definitions] Whenever in this Chapter there is a mention of:

1) lease agreement - it shall mean the agreement referred to in the Civil Code, as well as any other
agreement, under which one of the parties thereto, hereinafter referred to as the "lessor", gives for use
against a consideration and for deriving benefits under the conditions laid down in the Act to the other
party, hereinafter referred to as the "lessee", depreciable fixed assets or intangible assets, as well as
land;
2) primary lease period - it shall mean the definite period of time for which the lease agreement has
been concluded, excluding the time by which it may be extended or reduced;
3) depreciation (write-offs) - it shall mean depreciation written off exclusively in accordance with the
provisions of Article 22a-22m, account being taken of Article 23;
4) normative depreciation period - it shall mean in relation to:
a) fixed assets - the period in which depreciation write-offs resulting from the application of
depreciation rates laid down in the Depreciation Rates Schedule, become equal to the initial value of
fixed assets;
b) intangible assets - the period set in Article 22m ;
5) net actual value - it shall mean the initial value of fixed assets or intangible assets updated in
accordance with separate regulations, reduced by the sum total of depreciation written off referred to
in Article 22h.1.1, net hypothetical value - it shall mean the initial value determined in accordance
with Article 22g minus:
a) depreciation calculated in accordance with the principles laid down in Article 22k.1, account being
taken of coefficient 3 - in relation to fixed assets;
b) depreciation calculated over the depreciation periods reduced three times, referred to in
subparagraph 4b - in relation to intangible assets
7) repayment of the initial value of fixed assets or intangible assets, determined in accordance with
Article 22g, within the primary lease period; that repayment shall not be adjusted by the amount paid
to the lessee, referred to in Article 23d or Article 23h.
Art. 23b [Lease payments]
1. Payments specified in the lease agreement to be paid by the lessee during the primary lease period
for the use of fixed assets and intangible assets shall constitute income of the lessor and appropriately
deductible costs for the lessee, subject to paragraph 2, if the agreement meets the following conditions:
1) it has been concluded for a definite period of time, constituting at least 40% of the normative
depreciation period, if it concerns depreciable movables or intangible assets, or has been concluded for
a period of at least 10 lat, if it concerns depreciable real property; and
2) the sum total of payments specified therein, minus the goods and services tax due, corresponds with
at least the initial value of fixed assets or intangible assets.
2. If the lessor at the date of concluding the lease agreement enjoys income tax reliefs granted in
accordance with:
1) Article 6 of the Corporate Income Tax Act of 15 February 1992 (Dz.U. of 2000 No. 54, item 654,
No. 60, item 700 and 703, No. 86, item 958, No. 103, item 1100, No. 117, item 1228 and No. 122,
item 1315 and 1324);
2) regulations concerning special economic areas;
3) Article 23 and 37 of the Act of 14 June 1991 on Companies with Foreign Participation (Dz.U. of
1997 No. 26, item 143, of 1998 No. 160, item 1063 and of 1999 No. 49, item 484 and No. 101, item
1178)
- the taxation principles described in Article 23f-23h shall apply to that agreement.
Art. 23c [Transfer of ownership] If after the expiration of the primary lease period, referred to in
Article 23b.1, the lessor transfers the ownership of leased fixed assets or intangible assets onto the
lessee:
1) revenues from selling fixed assets or intangible assets shall be their value expressed as the price
specified in the sales contract; however, if that price is lower than net hypothetical value of fixed
assets or intangible assets, that income shall be determined at market value in accordance with the
principles laid down in Article 19;
2) in determining income from selling deductible costs shall be net actual value.
Art. 23d [Transfer of ownership]
1. If after the expiration of the primary lease period, referred to in Article 23b.1, the lessor transfers
the ownership of leased fixed assets or intangible assets onto a third person and pays the lessee an
agreed amount with respect to repayment of their value - the provisions of Article 14, Article 19,
Article 22 and Article 23 shall apply for determining revenues from selling and deductible costs.
2. The amount paid to the lessee, in the case described in paragraph 1, shall be treated as the
deductible cost of lessor as at the date of payment up to the difference between net actual value and net
hypothetical value.
3. The amount received by the lessee, in the case described in paragraph 1, shall constitute the lessee's
income as at the date of its receipt.
Art. 23e [Continued use] If after the expiration of the primary lease period, referred to in Article 23b.1,
the lessor gives leased fixed assets or intangible assets to the lessee for continued use, lessor's
revenues and appropriately lessee's deductible costs shall be payments set by the parties to that
agreement.
Art. 23f [Conditions for non-inclusion of payments]
1. The part of payments, referred to in Article 23b.1, constituting repayment of the initial value of
fixed assets or intangible assets shall not be included in lessor's revenues and appropriately lessee's
deductible costs if all of the following conditions have been met:
1) the lease agreement has been concluded for a definite period of time;
2) the sum total of payments specified therein, minus the goods and services tax due, corresponds with
at least the initial value of fixed assets or intangible assets;
3) the agreement provides that during the primary lease period depreciation shall be written off by the
lessee.
2. If the amount of repayment of the value of fixed assets or intangible assets falling on individual
payments has not been set in the lease agreement, it shall be prorated over the effective period of that
agreement.
Art. 23g [Income and costs after the expiration of the lease period]
1. If the conditions, referred to in Article 23f.1, have been met and after the expiration of the primary
lease period the lessor transfers the ownership of leased fixed assets or intangible assets onto the
lessee:
1) revenues from selling fixed assets or intangible assets shall be their value expressed as the price
specified in the sales contract, also when it significantly differs from their market value;
2) expenses incurred by the lessor for acquiring or manufacturing leased fixed assets or intangible
assets shall not be treated as deductible costs; however, those expenses minus the repayment of the
initial value, referred to in Article 23a.7, shall be treated as deductible costs.
2. If after the expiration of the primary lease period, referred to in Article 23f.1, the lessor gives leased
fixed assets or intangible assets to the lessee for continued use, lessor's revenues and appropriately
lessee's deductible costs shall be payments set by the parties to that agreement, also when the
significantly differ from market value.
Art. 23h [Transfer of ownership after the expiration of the lease period]
1. If the conditions, referred to in Article 23f.1, have been met and after the expiration of the primary
lease period the lessor transfers the ownership of leased fixed assets or intangible assets onto the lessee
and pays to the lessee an agreed amount as repayment of their value:
1) in determining revenues from selling the provisions referred to in Article 14 and Article 19 shall be
applied;
2) expenses incurred by the lessor for acquiring or manufacturing leased fixed assets or intangible
assets shall not be treated as deductible costs; however, those expenses minus the repayment of the
initial value, referred to in Article 23a.7, shall be treated as deductible costs.
2. The amount paid to the lessee shall be treated as the deductible cost of the lessor and shall be treated
as revenue of the lessee as at the date of its receipt.
Art. 23i [Land]
1. If the lease agreement concluded for a definite period of time concerns land, and the sum total of
payments specified therein corresponds with at least the value of land equal to the expenses on its
acquisition - the part of payments set in that agreement and incurred by the lessee during the primary
lease period constituting repayment of that value shall not be treated as lessor's revenues and
appropriately lessee's deductible costs; the provision of Article 23f.2 shall apply, as appropriate;
2. If after the expiration of the primary lease period the lessor transfers the ownership of leased land
onto the lessee or gives it to the lessee for continued use, the provisions of Article 23g and Article 23h
shall be applied, as appropriate, to determining revenues and deductible costs of the parties to that
agreement.
Art. 23j [Specification of price in the agreement]
1. If the agreement specifies the price at which the lessee shall be entitled to buy the leased object after
the expiration of the primary lease period, that price shall be considered in the sum total of payments,
referred to in Article 23b.1.2 and Article 23f.1.2.
2. The sum total of payments, referred to in paragraph 1, shall not include:
1) payments to the lessor for additional performance, if they are separated from lease payments;
2) taxes to be paid by the lessor for ownership or possession of leased fixed assets, as well as
premiums for the insurance of those fixed assets, if the lease agreement provides that the lessee shall
be paying those taxes and premiums apart from lease payments;
3) the security deposit specified in the lease agreement paid to the lessor by the lessee.
3. The security deposit, referred to in paragraph 2.3, shall not be treated as lessor's revenues and
appropriately lessee's deductible costs.
Art. 23k [Transfer of claims concerning payments]
1. If the lessor transferred to a third person claims concerning payments, referred to in Article 23b.1,
and the ownership of the leased object has not been transferred onto a third person:
1) amounts paid by the third person for the transfer of ownership shall not be treated as lessor's
revenues;
2) a discount or a consideration paid to the third person shall be treated as lessor's deductible costs.
2. In the case, referred to in paragraph 1, payments made by the lessee to the third person shall be
treated as lessor's income as at due date.
Art. 23l [Reference to the provisions of Article 11] The provisions, referred to in Articles 11, 22 and
23, for tenancy agreements, shall apply to taxation of the parties to an agreement concluded for an
indefinite period of time or for a definite period of time but not meeting the conditions laid down in
Article 23b.1.2, or Article 23f.1, or Article 23i.1.

Chapter 5. Special principles for determination of income.

Art. 24 [Specification of principles]

1. For taxpayers, who in accordance with the accounting principles applying to them prepare financial
statements, income from commercial activities shall be income shown on the basis of correctly kept
books, minus tax free income and plus expenses not treated as deductible costs, previously charged to
deductible costs.
2. For taxpayers deriving income from commercial activities and keeping receipt and expense books,
income from commercial activities shall be the difference between revenues within the meaning of
Article 14 and deductible costs, plus the difference between the value of the opening and closing
inventories of commercial commodities, basic and auxiliary materials (raw materials), semi-finished
products, final products, rejects and wastes, if the value of the closing inventory is higher than the
value of the opening inventory, or minus the difference between the value of the opening and closing
inventories if the value of the opening inventory is higher. Income from selling assets, referred to in
Article 14.2.1, used for the needs of commercial activities or special sectors of agricultural production,
shall be revenues from selling assets, referred to in Article 14.2.1(b), and in other case income or loss
shall be the difference between revenues from selling; and:
1) the initial value shown in the inventory of fixed assets and intangible assets, subject to
subparagraph 2, plus the sum total of depreciation, referred to in Article 22h.1.1, written off on those
assets, or
2) the value shown in a document certifying acquisition of a cooperative right to commercial premises
or a share in such right, whose initial value for depreciation purposes has been determined in
accordance with Article 22g.10, plus the sum total of depreciation, referred to in Article 22h.1.1,
written off on that right or a share in such right.
3. In case of notification of the head of fiscal office of closing down of commercial activities, income
shall be determined by applying to the value of commercial commodities, basic and auxiliary materials
(raw materials), semi-finished products, final products, rejects and wastes and tangible assets related to
the commercial activities other than fixed assets, remaining as at the closing down date, determined in
accordance with purchasing prices - such percentage indicator which results from the share of income
in revenues within the last three months preceding the month in which the activities were closed down,
and if there was no income in that period - in the tax year preceding the year in which the activities
were closed down. The date of closing down of commercial activities shall be the date specified in the
notification, referred to in the previous sentence. Income shall be determined as at the closing down
date, if:
1) as a result of a transformation or merger of undertakings the inventoried assets were brought into
the newly established or existing undertaking as a contribution;
2) there was a total or partial change of industry;
3) a natural person brought the inventoried assets as a contribution to a private partnership or a
commercial company;
4) a private partnership was transformed into a commercial company or a personal commercial
company was transformed into another personal commercial company or a capital commercial
company.
4. Income (loss) from special sectors of agricultural production shall be the difference between
revenues from running those sectors and deductible costs incurred, plus the value of the livestock
increase as at the end of the tax year as compared with the beginning of the year, and minus the value
of livestock losses in the course of the tax year. Income from special sectors of agricultural production,
if the taxpayer does not keep books, referred to in Article 15, shall be determined by applying standard
estimates of income derived from a specified area under crops or an animal production unit, laid down
in Annex No. 2.
4a. Standard estimates of annual income, referred to in paragraph 4, shall apply with respect to units of
area under crops or other production units, shown in column 3 of Annex No. 2, with the proviso that in
case of:
1) crops grown in greenhouses and plastic tunnels - with respect to 1 m2 of general area calculated
along the inner length of walls;
2) growing of mushrooms and mycelium - with respect of 1 m2 of area under those crops;
3) poultry hatcheries - with respect to 1 chick hatched;
4) laboratory animals - with respect to 1 animal sold - under agreements concluded for the needs of
laboratories, research and scientific experiments, analyses and tests performed in laboratories, as well
as control of technological processes;
5) breeding and raising of animals listed under serial number 15 letters (b) to (h) of Annex No. 2 -
with respect to 1 animal sold;
6) breeding of aquarium fish - with respect to 1 dm3 of aquarium capacity calculated along inner
length of edges.
4b. If the size of special sectors of agricultural production exceeds the figures laid down in Annex No.
2, income derived in the tax year from the entire area under crops or all production units shall be
taxable.
4c. If during the annual production cycle different crops are grown on the same area, for which
different standard estimates of income are set, income from each crop shall be calculated, subject to
paragraph 4e, by applying its appropriate standard, in proportion to the number of months during
which that crop was grown, including the period of preparations for growing that crop.
4d. The provision of paragraph 4c shall apply also in case running of special sectors of agricultural
production was started or ceased during the year.
4e. In unheated glass houses the annual standard shall be applied regardless of the period and type of
crops grown.
5. Income (revenues) from a share in profits of legal persons shall be income (revenues) actually
derived under that share, including:
1) income from retirement of shares (stocks);
2) income from selling shares (stocks) to the company in order to be retired;
3) the value of assets received in connection with liquidation of a legal person;
4) income appropriated for an increase of the initial capital, and in cooperatives - income appropriated
for an increase of the share fund and income being an equivalent of the amounts transferred to that
capital (fund) from other capitals (funds) of a legal person;
5) dividends from shares deposited by members of employee pension funds in quantity accounts;
6) in case of merger or division of companies - additional payments in cash received by the
participants (shareholders) of the acquired company, merged or divided companies;
7) in case of division of companies, if assets taken over as a result of the division, and in case of
division by spin-off also assets remaining in the company, do not constitute an organized part of an
undertaking - the excess of the nominal value of shares (stocks) allotted in the acquiring ot newly
established company over the costs of acquisition or receipt of shares (stocks) in the divided company
determined as at the date of the division, calculated in accordance with Article 22.1f or Article
23.1.38; if the company is divided by spin-off, deductible cost shall be the value or amount of
expenses incurred by a participant (shareholder) for acquisition or receipt of shares (stocks) in the
divided company, determined in the same proportion as the nominal value of that participant's
cancelled shares (stocks) in the divided company to the value of nominal value of shares (stocks)
before the division.
5a. Income with respect to transfer of shares deposited in the quantitative account of a member of an
employee pension fund to that fund's assets shall be the difference between the value of those shares as
at the date of transfer, priced in accordance with the principles for valuation of pension fund assets,
and the acquisition cost of those shares.
5b. (repealed)
5c. (repealed)
5d. Income from retirement of shares or stocks in incorporated companies shall be the excess of
revenues received in connection with retirement over deductible costs calculated in accordance with
Article 22.1f or Article 23.1.38;. if those shares or stocks were acquired by way of inheritance or gift,
costs shall be determined up to the value as at the date of acquirement of the inheritance or gift.
6. Income from selling things described in Article 10.1.8(d), if revenues from selling do not constitute
revenues from commercial activities, shall be the difference between revenues derived from selling
things and the cost of their acquisition, minus the value of outlays made in the course of having those
things in possession.
7. The minister competent for public finance, in conjunction with the minister responsible for
agriculture, beginning with tax year 2002, shall announce, by way of an ordinance, standard estimates,
referred to in paragraph 4, amending them every year to a degree corresponding with the price growth
index for commodity agricultural production, announced by the President of the Central Statistical
Office in the Official Journal of the Republic of Poland "Monitor Polski".
8. In case of merger or division of capital companies, subject to paragraph 5.7, income of a participant
(shareholder) of the acquired or divided company, in excess of the nominal value of shares (stocks)
allotted by the acquiring or newly established company over expenses for acquisition (receipt) of
shares (stocks) in the acquire or divided company shall not be taxable at the time of merger or division
of companies; for determining income from selling shares (stocks) of the acquiring or newly
established company the participant (shareholder) shall determine deductible costs on the basis of:
1) Article 22.1f - if shares (stocks) in the acquired or divided company were received in exchange for a
contribution in kind;
2) Article 23.1.38 - if shares (stocks) in the acquired or divided company were acquired or received for
cash;
3) the amount of expenses for acquisition or receipt of shares (stocks) in the divided company,
determined in accordance with subparagraph 1 or subparagraph 2, in such proportion as the nominal
value of that participant's cancelled shares (stocks) in the divided company to the value of nominal
value of shares (stocks) before the division by spin-off; the remaining amount of those expenses shall
be the deductible cost with respect to selling shares (stocks) of companies divided by spin-off.
9. (deleted)
10. If the taxpayer sells securities acquired at different prices and it is impossible to determine the
acquisition price of the securities being sold, in determining income from such selling the principle
shall apply that each time selling concerns consecutively securities that were acquired first. The
principle, referred to in the first sentence, shall be applied separately to each securities account.
11. Income constituting excess of the market value of shares acquired by persons authorized by a
resolution of the General Meeting over expenses incurred for their receipt shall not be taxable at the
time those shares are received; the principle laid down in the first sentence shall apply, as appropriate,
to income excess of the market value of shares over expenses incurred for their acquisition from an
incorporated company, which received those shares exclusively in order to transfer their ownership
onto persons authorized by a resolution of the General Meeting of the issuing company.
12. The principle, referred to in paragraph 11, shall not apply to income derived from selling shares by
persons authorized by a resolution of the General Meeting of the issuing company.
13. In case of selling loaned securities in accordance with the principles laid down in separate
regulations (short selling), income shall be determined as at the date at which the borrowed securities
were returned or were to be returned, in accordance with the concluded securities loan agreement.
14. Income, referred to in paragraph 13, derived in the tax year, shall be the difference between the
sum total of revenues from selling loaned securities and expenses incurred on acquiring the returned
securities.
15. Income with respect to investing insurance premiums in connection with the insurance contracts
concluded in accordance with the insurance regulations, in case of unit-linked insurance, shall be the
difference between the amount of the benefit paid and the sum total of premiums paid to the insurance
company, which have been allocated to the capital fund.
Art. 24a [Duty to keep account books]
1. Natural persons, private partnerships of natural persons, registered partnerships of natural persons
and general partnerships performing commercial activities shall be obliged to keep a book of receipts
and expenses, hereinafter called the "book", subject to paragraphs 3 and 5, or account books, in
accordance with separate regulations, in a manner allowing to determine income (loss), the taxation
base and the amount of tax due for the tax year, including the reporting period, as well as include in
the inventory of fixed assets and intangible assets information necessary to calculate depreciation
write-offs in accordance with the provisions of Article 22a-22o.
2. The duty to keep books shall also apply to persons:
1) performing activities under agency agreements and contracts of mandate concluded in accordance
with separate regulations;
2) running special sectors of agricultural production, if those persons declared the intention to keep
those books;
3) clergymen, who waived payment of lump income tax.
3. The duty to keep books shall not apply to persons, who:
1) pay income tax in lump forms;
2) provide exclusively passenger and commodity transport service by horse-drawn vehicles;
3) work as attorneys exclusively in a law firm;
4) sell assets after the closing down of activities.
4. The duty to keep account books shall apply to natural persons, private partnerships of natural
persons, registered partnerships of natural persons and general partnerships, if their revenues, within
the meaning of Article 14, for the preceding tax year amounted to at least the Polish currency
equivalent of the amount specified in EUR in the provisions of the Accounting Act.
5. A natural person, private partnership of natural persons, registered partnership of natural persons or
general partnership may keep account books also from the beginning of the following tax year, if
revenues, within the meaning of Article 14, for the preceding tax year are lower than the Polish
currency equivalent of the amount specified in EUR in the provisions of the Accounting Act. In that
case that person or partners shall be obliged, before the beginning of the tax year, to notify of this the
head of fiscal office competent with respect to income tax matters.
6. The amounts expressed in EUR, referred to in paragraphs 4 and 5, shall be converted into the Polish
currency at the average rate of exchange as announced by the National Bank of Poland, effective as at
30 September of the year preceding the tax year.
7. The minister competent for public finance, by way of an ordinance, shall specify the manner of
keeping the book of receipts and expenses, the specific requirements to be satisfied by that book to
constitute an evidence allowing to determine tax liability, and the detailed scope of duties connected
with keeping the book, as well as the time limits for notifying the head of fiscal office of keeping the
book.
Art. 24b [Estimation of income]
1. Should it prove impossible to determine income (loss) in a manner provided for in Articles 24 and
24a, income (loss) shall be determined by estimation.
2. In case of taxpayers other than those referred to in Article 3.1 and 3.3, obliged to keep books,
referred to in Article 24a, when it is impossible to determine income on the basis of those books,
income shall be determined by estimation, using the ratio of income in relation to revenues amounting
to:
1) 5% - from wholesale or retail trade operations;
2) 10% - from construction or assembly operations, or transport services;
3) 60% - from agency services, if remuneration is is set as a commission;
4) 80% - from attorney or expert services;
5) 20% - from other sources.
3. Wholesale or retail trade operations, referred to in paragraph 2.1, performed in the territory of the
Republic of Poland by taxpayers other than taxpayers referred to in Article 3.1 and 3.3, shall mean
selling of goods to Polish buyers regardless of the place of contracting.
4. The provisions of paragraph 2 and 3 shall not apply when the agreement on avoidance of double
taxation, to which the Republic of Poland is a party, signed with the country, in the territory of which
the taxpayer's seat or place of residence is located, provides otherwise.
Art. 25 [Use of a business relationship]
1. If:
1) an income taxpayer, whose seat (head office) or place of residence is located in the territory of the
Republic of Poland, hereinafter called the "domestic entity", takes part, directly or indirectly, in
management of an undertaking located abroad, or in controlling it, or has an interest in the capital of
that undertaking; or
2) a natural or legal person, whose seat (head office) or place of residence is located abroad,
hereinafter called the "foreign entity", takes part, directly or indirectly, in management of a domestic
entity, or in controlling it, or has an interest in the capital of that domestic entity; or
3) the same legal or natural persons simultaneously, directly or indirectly, participate in management
of a domestic entity and foreign entity, or in controlling them, or have interest in the capital of those
entities

- and if as a result of such linkages conditions shall be agreed or imposed differing from those which
would have been agreed by independent entities, and as a result of that the entity does not show any
income or shows income lower than would have been expected should those linkages be nonexistent -
income of that entity and the tax due shall be determined without taking into account the conditions
resulting from those relationships.

2. Income, referred to in paragraph 1, shall be determined, by way of estimation, by the following

methods:
1) the comparable uncontrolled price method;
2) the resale price method;
3) the reasonable margin ("cost plus") method.
3. If it is impossible to apply the methods, referred to in paragraph 2, the transaction profit methods
shall be applied.
4. The provisions of paragraphs 1-3 shall apply, as appropriate, when
1) a domestic entity participates directly in management of another domestic entity, or in controlling
it, or has an equity interest in another domestic entity; or
2) the same legal or natural persons simultaneously, directly or indirectly, participate in management
of domestic entities, or in controlling them, or have an equity interest in those entities.
5. The provisions of paragraph 4 shall apply also to relationships of a family nature or arising from an
employment or property relationships between domestic entities or persons performing in those
entities management or controlling or supervisory functions and if any person combines management
or controlling or supervisory functions in those entities.
5a. Having an equity interest in another entity, referred to in paragraphs 1 and 4, shall mean a situation
whereby a given entity holds directly or indirectly an equity interest in another equity which is not less
than 5%.
5b. Determining the size of indirect equity interest held by an entity in another entity, it is assumed
that if one entity has a specified equity interest in the other entity, and the other has the same equity
interest in another entity, the former entity has indirect equity interest in that other entity of the same
size; if those figures are different, the lower one shall be taken as the size of indirect equity interest.
6. The notion of family relationships, referred to in paragraph 5, shall mean marriage and
consanguinity or affinity to the second degree.
7. (repealed)
7a. (repealed)
8. The minister competent for public finance shall specify, by way of an ordinance, the manner and
procedure for determining income by estimation, aecording to methods referred to in paragraphs 2 and
3.
Art. 25a [Transactions]
1. Taxpayers engaged in transactions with entities related with those taxpayers - within the meaning of
Article 25.1 and 25.4 - or transactions in connection with which the resulting receivables are paid
directly or indirectly in favour of an entity whose place of residence, seat or management are located
in a territory of or country applying harmful tax competition, shall be obliged to make out tax
documentation of such transaction(s) containing:
1) description of functions to be performed by entities engaged in the transaction (taking into account
the assets used and the risks taken);
2) description of all anticipated costs of the transaction, as well as the form and date of payment;
3) method and manner of calculating profits and pricing of the object of the transaction;
4) description of business strategy and other actions thereunder - in case the value of the transaction
was affected by the strategy adopted by the entity;
5) indication of other factors - when in order to define the value of the object of the transaction by the
entities engaged therein those other factors were taken into account;
6) description of performance related benefits expected by the entity obliged to make out the
documentation - in case of agreement concerning performances (including services) of an intangible
nature.
2. The duty, referred to in paragraph 1, shall cover a transaction or transactions between related
entities, in which the total contractual amount (or its equivalent) or the total amount of performances
required in the tax year actually paid in the tax year has exceeded the equivalent of:
1) EUR 30 000 - in case of performance of services, selling or leasing intangible assets, or
2) EUR 50 000 - in other cases.
3. The duty to make out documentation, referred to in paragraph 1, shall also cover a transaction in
connection with which the resulting receivables are paid directly or indirectly in favour of an entity
whose place of residence, seat or management are located in a territory of or country applying harmful
tax competition, if the total contractual amount (or its equivalent) or the total amount of performances
required in the tax year actually paid in the tax year has exceeded the equivalent of EUR 20 000.
4. At the request of tax authorities or fiscal control authorities taxpayers shall be obliged to present the
documentation, referred to in paragraphs 1-3, within 7 days from the date of delivery of those
authorities' request for the documentation.
5. The amounts expressed in EUR, referred to in paragraphs 2 and 3, shall be converted into the Polish
currency at the average rate of exchange as announced by the National Bank of Poland, effective as at
the last day of the tax year preceding the tax year in which the transaction, covered by the duty,
referred to in paragraph 1, was concluded.
6. The minister competent for public finance shall specify, by way of an ordinance, the list of countries
and territories applying harmful tax competition. Compiling the list of countries and territories, the
minister responsible for public finance shall take into account, in particular, the contents of the
decisions adopted in that respect by the Organization for Economic Cooperation and Development
(OECD).

Chapter 6. Taxable base and the amount of tax.

Art. 26 [Taxable base list of deductions]

1. Subject to Article 24.3, Article 28-30 and Article 30a-30c, the taxable base shall be income
determined in accordance with Article 9, Article 24.1, 24.2, 24.4, 2.4a-4e, 24.6 or Article 24b.1 and
24b.2 or Article 25, after the following deductions:
1) (deleted)
2) contributions described in the Social Security Act of 13 October 1998 (Dz.U. No. 137, item 887,
with later amendments):
a) paid within the tax year directly for own retirement pension, disability pension, sickness and
accident insurance of the taxpayer and his co-workers;
b) deducted in the tax year by the withholding agent from taxpayer's money for retirement and
disability pension insurance and sickness insurance, with the proviso that in case of taxpayers attaining
revenues specified in Article 12.6, only with respect to the calculated portion, in a manner described in
Article 33.4, on taxable revenues

- the deduction shall not apply to contributions based on tax free income (revenues) pursuant to
Articles 21, 52, 52a and 52c, and contributions based on income, on which pursuant to the regulations
of the Taxation Act tax collection has been waived;

3) (repealed)
4) (repealed)
5) refunds of benefits unduly collected during the tax year, which previously increased taxable
income, in amounts matching income tax collected, if those refunds have not been deducted by the
withholding agent;
6) expenses on rehabilitation and expenses related to facilitating performance of life activities,
incurred in the tax year by a disabled taxpayer or a taxpayer supporting disabled persons;
6a) expenses incurred by taxpayers for the use of an Internet network in the premises (building) being
their place of residence, in the amount not exceeding in the tax year PLN 760;
7) (deleted)
8) (deleted)
9) donations for the following purposes:
a) specified in the Act on Public Benefit Activities, to organizations, referred to in Article 3.2 and 3.3
of the Act on Public Benefit Activities, conducting public benefit activities in the area of public
assignments described in that Act, implementing those objectives;
b) religious cult

- in the amount of the donation, though not more than the amount corresponding with 6% of income.

10) (repealed)
2. (deleted)
3. (deleted)
4. (deleted)
5. The total amount of deductions for the purposes described in paragraph 1.9 may not exceed in the
tax year the amount corresponding to 6% of income, with the proviso that deductions cannot be made
for donations made in favour of:
1) natural persons;
2) legal persons and unincorporated organizational units conducting commercial activities consisting
in manufacturing of electronic products, fuels, tobacco products, spirits, wines, beers, as well as other
alcoholic beverages with alcohol content of more than 1,5%, as well as products made of precious
metals or including those metals, or trading in those products.
6. If the object of donation are goods taxed with the goods and services tax, the amount of the
donation shall be the value of those goods including the goods and services tax due. In determining the
amount of those donations Article 19 shall apply, as appropriate.
6a. Payments by which the tax is reduced in accordance with Article 27d or lump tax on inventoried
revenues is reduced in accordance with Article 14a of the Act on Lump Income Tax shall not be
deemed as donations, referred to in paragraph 1.9.
6b. Taxpayers availing themselves of the deduction of donations under paragraph 1.9 shall be obliged
to show in the return, referred to in Article 45.1, the amount of the donation transferred, the amount of
the deduction made and data allowing for identification of the beneficiary, in particular their name and
address.
6c. In case of a return of the donation made, the beneficiary shall be obliged to notify the fiscal office
of the donation returned to the taxpayer, within one month from the date of the return.
7. The amount of expenses for the purposes described in paragraph 1 shall be determined on the basis
of documents certifying their incurrence. However, in case of deductions, referred to in paragraph 1:
1) subparagraph 6a, the deduction shall apply, if the amount of expenses has been documented with an
invoice within the meaning of the goods and services tax regulations;
2) subparagraph 9, the deduction shall apply, if the amount of donation has been documented with a
receipt documenting payment to the bank account of the beneficiary, and in case of donation other
than in cash - a document stating the value of that donation and a the beneficiary's declaration of its
acceptance.
7a. Expenses, referred to in paragraph 1.6, shall include expenses incurred for:
1) adaptation and equipment of apartments and residential buildings to meet the needs arising from
disability;
2) adaptation of motor vehicles to meet the needs arising from disability;
3) purchasing and repairing of personal equipment, appliances and technical instruments necessary for
rehabilitation and facilitating performance of life activities, in accordance with the needs arising from
disability, with the exception of household equipment;
4) purchasing of publications and training materials (teaching aids), in accordance with the needs
arising from disability;
5) charges for participation in rehabilitation stays;
6) charges for treatment at spa treatment facilities, for stay in medical rehabilitation facilities,
nursing/medical and nursing/care facilities, as well as charges for rehabilitation treatment;
7) payment for guides to blind persons of the 1-st or 2-nd category of disability and for persons with
disability of locomotive organs classified in the 1st category of disability, in the amount not exceeding
in the tax year PLN 2280;
8) keeping by bling persons, referred to in subparagraph 7, of a guide dog - in the amount not
exceeding in the tax year the amount specified in subparagraph 7;
9) nursing care at home for a disable person during a chronic immobilizing sickness and nursing
services rendered for the disabled persons classified in the 1st category of disability;
10) payment for the services and a sign language interpreter;
11) colonies and camps for disabled children and youth and children of disabled persons, under 25
years of age;
12) medicaments - in the amount constituting the difference between expenses actually incurred in a
given month and the amount of PLN 100, if a specialist decides that the disabled person should take
certain medicaments (permanently or temporarily);
13) necessary paid transport for indispensable medical/rehabilitation treatment:
a) of a disabled person - by an ambulance;
b) a disabled person classified in the 1-st or 2-nd category of disability and disabled children under 16
years of age - also by means of transport other than those mentioned in letter (a);
14) use of a passenger car owned (jointly owned) by a disabled person classified in the 1-st or 2-nd
category of disability or a taxpayer supporting a disabled person classified in the 1-st or 2-nd category
of disability or disabled children under 16 years of age, for the needs relating to necessary transport for
indispensable medical/rehabilitation treatment - in the amount not exceeding in the tax year the
amount of PLN 2280;
15) paid conveyances by public transport connected with:
a) a rehabilitation stay;
b) a stay in the facilities, referred to in subparagraph 6;
c) stays at colonies and camps for children and youth, referred to in subparagraph 11.
7b. Expenses, referred to in paragraph 7a, shall be deducted from income if they have not been
financed (subsidized) from the company funds for rehabilitation of the disabled, the State Fund for the
Rehabilitation of the Disabled (PFRON) or the National Health Fund, the company social benefits
fund or have not been refunded to the taxpayer in any form. When expenses were partially financed
(subsidized) from those funds, deducted shall be the difference between expenses incurred and the
amount refunded in any form.
7c. The amount of expenses for the purposes described in paragraph 7a shall be determined on the
basis of documents certifying their incurrence, with the exception of expenses, referred to in paragraph
7a.7, 7a.8 and 7a.14.
7d. In order to be able to deduct the expenses, referred to in paragraph 7a, the person concerned should
have been:
1) classified by the competent authorities in one of the three categories if disability, specified in
separate regulations; or
2) awarded a pension for total or partial disability to work, a training pension or a social pension; or
3) pronounced disabled under separate regulations, in case of a person under 16 years of age.
7e. The provisions of paragraphs 7a-7d and 7g shall apply, as appropriate to taxpayers supporting the
following disable persons: spouse, own and adopted children, foster children, stepchildren, parents,
parents-in-laws, siblings, stepparents, children-in-law - if in the tax year income of those disabled
persons is less than the amount of PLN 9120.
7f. Whenever in provisions of paragraph 7a there is a mention of persons classified in:
1) the 1-st category of disability - it shall mean, as appropriate, persons who, pursuant to separate
regulations, have been pronounced:
a) totally unable to work and unable to live on their own; or
b) disabled in a considerable degree;
2) the 2-nd category of disability - it shall mean, as appropriate, persons who, pursuant to separate
regulations, have been pronounced:
c) totally unable to work; or
d) disabled in a moderate degree.
7g. The deduction, referred to in paragraph 1.6, may also be made when the person concerned has
been pronounced disabled by a competent authority pursuant to separate regulations in force until 31
August 1997.
7h. The amount, referred to in paragraph 1.5, exceeding the amount of income, referred to in
paragraph 1, may be deducted from income generated in the forthcoming consecutive 5 tax years.
8. (deleted)
9. (deleted)
10. (deleted)
11. (deleted)
12. (deleted)
13. (repealed)
13a. Expenses for the purposes described in paragraph 1 shall be deducted from income, if they have
not been recognized as deductible costs or have not been deducted from pursuant to the Act on Lump
Income Tax.
14. (deleted)
Art. 26a (deleted)
Art. 26b [Deduction of interest]
1. In accordance with Article 26.1, subject to paragraph 2-4, deducted from the taxable base shall be
expenses actually incurred in the tax year on repayment of interest on a credit (loan) granted to the
taxpayer, referred to in Article 3.1, for financing of an investment project in order to satisfy own
housing needs, connected with:
1) construction of a residential building; or
2) making a construction or housing deposit to a housing cooperative for acquiring the right to a newly
constructed residential building or an apartment in such building; or
3) buying of a newly constructed residential building or an apartment in such building from the
municipal authorities or from a person who has constructed that building in order to perform
commercial activities; or
4) extension of a building for residential purposes or alteration (adaptation) of a non-residential
building, any part thereof or non-residential premises for residential purposes, the result of which will
be an independent housing unit meeting the requirements laid down in the building regulations.
2. The deduction, referred to in paragraph 1, shall apply, if:
1) the credit (loan) was granted to the taxpayer after 1 January 2002,
2) the credit (loan) was granted by an entity authorized under the banking law or regulations
concerning cooperative saving-and-loan banks to extend credits (loans), and the credit (loan)
agreement indicates that it concerns of the the investment projects referred to in paragraph 1;
3) the investment project, referred to in paragraph 1, concerns residential buildings or apartments in
the area of the Republic of Poland designated for housing in the local spatial development plan, and in
case of absence of such plan - specified in the decision on land development conditions issued
pursuant to the applicable acts of law;
4) the investment project, referred to in paragraph 1, concerns a residential building or an apartment,
whose construction was finished not earlier than in 2002, and in case of an investment project:
a) referred to in paragraph 1.1 or 1.4 - the completion took place within three years form the end of the
calendar year in which, in accordance with the building regulations, a permit had been obtained for
construction or extension of a building for residential purposes or alteration (adaptation) of a non-
residential building, any part thereof or non-residential premises for residential purposes, and had been
confirmed by the permit to use the residential building as provided for in the building regulations, and
in case it was not mandatory to obtain that permit - a notification of the completion of the construction
of such building;
b) referred to in paragraph 1.2 or 1.3 - an agreement had been concluded for the establishment of a
cooperative ownership or tenancy right to an apartment and an agreement in the form of a notarial
deed for the establishment of separate ownership of an apartment, for the transfer to the taxpayer of
ownership of a residential building or an apartment, one of the parties to which is the taxpayer;
5) the return, referred to in Article 45, submitted for the year in which the deduction, referred to in
paragraph 1, is made for the first time, the taxpayer shall attach a declaration, in accordance with the
specified sample, concerning the amount of all expenses incurred in connection with a given
investment project, including the amount of expenses documented with invoiced issued by parties
taxable with the goods and services tax, who do not enjoy exemption from that tax;
6) interest, referred to in paragraph 1:
a) has been actually paid, and its amount and due date are documented by a receipt issued by an entity,
referred to in subparagraph 2;
b) has not been recognized as deductible costs or has not been refunded to the taxpayer in any form,
unless the refunded interest was added to the taxable base;
c) has not been deducted from revenues pursuant to Article 11 of the Act on Lump Income Tax;
7) the taxpayer or spouse has not deducted from income (revenues) or the tax the expenses incurred for
own residential purposes, for:
a) purchase of land or paid transfer of the right to perpetual usufruct of land for the construction of a
residential building;
b) construction of a residential building;
c) construction or tenancy deposit to a housing cooperative;
d) buying of a newly constructed residential building or an apartment in such building from the
municipal authorities or from a person who has constructed that building in order to perform
commercial activities;
e) extension of a building for residential purposes;
f) alteration of an attic, laundry room or any other premises for residential purposes and finishing an
apartment in a newly constructed residential building, before moving into those premises;
g) systematic savings in a saving-and-loan account in a bank running a housing fund, in accordance
with the principles laid down in separate regulations.
3. Interest, referred to in paragraph 1, shall not be deductible if it concerns the following loans:
1) granted from the National Housing Fund to social housing societies and housing cooperatives for
construction projects designed to build apartments for rent and providing apartments in accordance
with the principles of the cooperative tenancy right to an apartment pursuant to the regulations
concerning certain forms of support to housing;
2) granted by housing funds in accordance with the principles laid down in the regulations concerning
certain forms of support to housing;
3) (repealed)
4) granted for clearing away the effects of a flood in accordance with the principles laid down in the
regulations concerning subsidies to interest on bank loans granted for clearing away the effects of
floods;
5) interest on state budget funds subject to redemption in accordance with the principles laid down in
the regulations concerning state assistance for repayment of certain housing loans, refunding paid
guarantee premiums to banks;
6) used for acquisition of land or the right of perpetual usufruct of land in connection with an
investment project, referred to in paragraph 1; if the loan has been used for the purposes, referred to in
paragraph 1, and for acquiring land or the right of perpetual usufruct of land, interest on the portion of
the loan prorated in relation to the share of expenses for acquiring land or the right of perpetual
usufruct of land in total expenses, referred to in paragraph 2.5, shall not be deducted.
4. The deduction, referred to in paragraph 1, shall cover exclusively interest:
1) accrued for the period beginning as of 1 January 2002, subject to paragraph 5, and paid from that
date;
2) on that portion of the loan, which is less than the amount of 70 m2 of usable area multiplied by the
conversion factor for 1 m2 of usable area of a residential building, determined for the calculation of a
guarantee premium on deposits in housing savings books for the 3-rd quarter of the year preceding the
tax year, as at the year of completion of the project, subject to paragraph 10.
5. The deduction, referred to in paragraph 1, shall be made at the earliest for the tax year in which a
given investment project was completed.
6. Interest, referred to in paragraph 4, paid before the year referred to in paragraph 5, may be deducted
from the taxable base for the tax year, in which the taxpayer deducts interest for the first time.
7. Interest, referred to in paragraph 4, paid before the year referred to in paragraph 5, may be deducted
from the taxable base also in the tax year directly following the tax year, in which the taxpayer
deducted interest for the first time. in that case, deducted shall be only the difference between the sum
total of deductible interest and the amount of interest actually deducted in the year, in which the
taxpayer deducted interest for the first time.
8. The expenses, competent to in paragraph 1, concern interest paid jointly by both spouses. If spouses
are taxed separately - deductions shall be made in accordance with the requests attached to annual
return, or from income of each spouse, in proportion indicated in the request, or form income of one of
the spouses.
9. The minister responsible for public finance, shall specify, by way of an ordinance, a sample
declaration, referred to in paragraph 2.5, together with filling instructions.
10. In subsequent consecutive tax years the amount, referred to in paragraph 4.2, may not be reduced.
To this end, for determining that taxable base the highest conversion factor for 1 m2 of usable area of a
residential building, determined for the calculation of a guarantee premium on deposits in housing
savings books for the 3-rd quarter, shall be adopted.
11. The minister competent for public finance, shall specify, by 31 December of the year preceding the
tax year, by way of an announcement in the Official Journal of the Republic of Poland "Monitor
Polski", the amount, referred to in paragraph 4.2, subject to paragraph 10.
Art. 27 [Tax rates]
1. Subject to Article 28-30, Article 30a-30d and Article 44.4, income tax shall be collected from its
assessment base in accordance with the following scale:
Taxable base in Polish zlotys Tax amount
above up to
37 024 19% - 530,08 PLN
37 024 74 048 PLN 6504,48 + 30% of excess above PLN 37 024
74 048 600 000 PLN 17 611,68 + 40% of excess above PLN 74 048
600 000 PLN 227 992,48 + 50% of excess above PLN 600 000
2. If the taxpayers, whose revenues derive exclusively from retirement and disability pensions not
subject to raising in accordance with Article 55.6, following the deduction of tax in accordance with
the scale, referred to in paragraph 1, are left with income amounting to less than 20% of the upper
limit of the tax scale bracket, referred to in paragraph 1, per year, the tax shall be assessed only in the
amount of excess above that amount.
3. Paragraph 2 shall apply, if the right to benefits laid down therein and the tax liability were in force
as at 1 January 1992 or arose with respect to the benefits due as of that date.
4. (repealed)
5. (repealed)
5a. (repealed)
6. (repealed)
7. (repealed)
8. If the taxpayer, referred to in Article 3.1, apart from income taxable in accordance with paragraph 1,
also derived income from activities performed outside of the territory of the Republic of Poland or
from sources of income located outside of the territory of the Republic of Poland, exempt from tax
under agreements on avoidance of double taxation or other international agreements - the tax shall be
determined in the following manner:
1) tax exempt income shall be added to taxable income, and the tax shall be calculated with respect to
the sum total of those incomes in accordance with the scale laid down in paragraph 1;
2) the tax rate for the sum total of incomes calculated as above shall be determined;
3) the tax rate determined in accordance with subparagraph 2 shall be applied to taxable income.
9. If the taxpayer, referred to in Article 3.1, also derives income from activities performed outside of
the territory of the Republic of Poland or from sources of income located outside of the territory of the
Republic of Poland, and the agreement on avoidance of double taxation does not provide for the
application of the method laid down in paragraph 8, that income shall be combined with income from
income sources located in the territory of the Republic of Poland. In that case the amount equal to
income tax paid in a foreign state shall be deducted from the tax calculated for the sum total of
incomes. However, that deduction may not exceed that portion of income tax calculated before the
deduction, which is prorated for income obtained in a foreign state. The provisions of paragraph 11.3
and 11.4 shall apply, as appropriate.
9a. If the taxpayer, referred to in Article 3.1, derives income exclusively from activities performed
outside of the territory of the Republic of Poland or from sources of income located outside of the
territory of the Republic of Poland, the principle laid down in paragraph 9 shall apply, as appropriate.
10. (repealed)
Art. 27a (repealed)
Art. 27b [Deduction of insurance premiums]
1. Income tax, calculated in accordance with Article 27 or Article 30c, shall be in the first place
reduced by the amount of health insurance premium, referred to in the Act of 27 August 2004 on
Publicly Financed Health care (Dz.U. No. 210, item 2135):
1) paid in the tax year directly by the taxpayer in accordance with the regulations on rendering health
care services financed with public funds;
2) withheld in the tax year directly by the withholding agent in accordance with the regulations on
rendering health care services financed with public funds;
- the deduction shall not apply to contributions based on tax free income (revenues) pursuant to
Articles 21, 52, 52a and 52c, and contributions based on income, on which pursuant to the regulations
of the Taxation Act tax collection has been waived;
2. The amount of health insurance contribution deducted from tax must not exceed 7,75% of that
contribution's base.
3. The amount of expenses for the purposes described in paragraph 1 shall be determined on the basis
of documents certifying their incurrence.
Art. 27c (repealed)
Art. 27d [Tax reduction]
1. Income tax resulting from the return, referred to in Article 45.1, shall be reduced in accordance with
the principles laid down in paragraphs 2-4, if within the period, referred to in paragraph 2a, the
taxpayer made a donation of money, hereinafter referred to as "payment", for a public benefit
organization, operating pursuant to the Act on Public Benefit Work, hereinafter referred to as a "public
benefit organization".
2. The reduction, referred to in paragraph 1, must not exceed the amount of payment, though not more
than the amount of constituting 1% of tax due, shown in the return, referred to in Article 45.1.
2a. The reduction, referred to in paragraph 1, shall cover payments made from 1 May to 31 December
of the tax year and from 1 January to the date of submitting the return for the tax year, though not later
than by the expiration of the period specified for submitting that return.
3. The reduction, referred to in paragraph 1, shall not apply to public benefit organizations conducting
commercial activities consisting in manufacturing of electronic products, fuels, tobacco products,
spirits, wines, beers, as well as other alcoholic beverages with alcohol content of more than 1,5%, as
well as products made of precious metals or including those metals, or trading in those products.
4. The reduction, referred to in paragraph 1, shall apply, if payments made:
1) have been documented with an evidence of deposit into the bank account of the public benefit
organization, which shall provide, in particular: name and surname, as well as address of the depositor,
the amount of payment, name of the public benefit organization for which payment has been made;
2) has not been deducted from income pursuant to Article 26.1.9, as well as from revenues or tax
pursuant to the Act on Lump Income Tax;
5. The amount of the reduction, referred to in paragraph 2, shall be rounded down to full decimals.
6. In case of a return of the donation made, the public benefit organization shall be obliged to notify
the fiscal office of the payment returned to the taxpayer, within one month from the date of the return.
Art. 28 [Tax on income from selling real property]
1. Revenues from selling real property and property rights, described in Article 10.1.8 letters (a) to (c),
shall not be combined with revenues (income) from other sources.
2. Tax on revenues, referred to in paragraph 1, shall be determined as a lump-sum in the amount of
10% of derived revenues. The tax shall be payable without call within 14 days from the date of selling
to the account of the fiscal office, led by the head of fiscal office competent for the place of residence
of the taxpayer.
2a. The principle, referred to in the second sentence of paragraph 2, shall not apply to taxpayers selling
real property and property rights described in Article 10.1.8 letters (a) to (c), who within 14 days from
the date of selling file a declaration that revenues derived from selling shall be allocated for the
purposes, referred to in Article 21.1.32 letter (a) or letter (e).
3. If the conditions, referred to in Article 21.1.32 letter (a) or letter (e), are not satisfied, the tax shall
become payable at the latest on the date following expiration of periods specified in this provision
together with interest accrued:
1) from the date of payment set in paragraph 2 until the date at which two years have elapsed from the
date of selling - in the amount of half the interest for default collected on tax arrears,
2) beginning with the date immediately following expiration of the two year period from the date of
selling until the date of payment - in the amount of full interest for default collected on tax arrears.
4. By the date of payment, the taxpayer shall be obliged to present the declaration in accordance with
the form set.
Art. 29 [Tax on licence fees]
1. Income tax on revenues derived in the territory of the Republic of Poland by persons, referred to in
Article 3.2a:
1) from activities, referred to in Article 13.2 and 13.6-13.9, and from interest, from copyright or
related rights, from rights to inventions, trademarks and ornamental designs, including also from
selling those rights, from fees for disclosing the secrets of a technique or a production process, for the
use or the right to use industrial, commercial or scientific equipment, including vehicles, and for
information related to the experience acquired in industry, commerce or science (know-how) - shall be
collected as a lump-sum in the amount of 20% of revenues;
2) from charges for services in the area of performances, entertainment or sports, performed by natural
persons domiciled abroad, and organized through natural persons or legal persons conducting
commercial activities related to artistic, entertainment or sport events in the territory of the Republic of
Poland - shall be collected as a lump-sum in the amount of 20% of revenues;
3) with respect to charges due for the transport of cargo or passengers taken on board in Polish ports
by foreign merchant shipping undertakings, with the exception of transit cargo and passengers - shall
be collected as a lump-sum in the amount of 10% of revenues;
4) generated in the territory of the Republic of Poland by foreign air transport undertakings - shall be
collected as a lump-sum in the amount of 10% of revenues;
5) with respect to consulting, accounting, market research, legal, advertising, management and control,
data processing, staff recruitment, guarantee and warranty and similar services - shall be collected as a
lump-sum in the amount of 20% of revenues.
2. The provision of paragraph 1 shall apply with account being taken of agreements on avoidance of
double taxation, to which the Republic of Poland is a party. However, application of the tax rate
arising from a relevant agreement on avoidance of double taxation or waiving tax collection in
accordance with such agreement is possible providing the place of residence of the taxpayer has been
documented for tax purposes by a certificate issued by a competent tax administration authority,
hereinafter referred to as the "certificate of residence".
Art. 30 [Tax on income from interest undisclosed and other sources]
1. Lump income tax shall be collected on income (revenues) derived in the territory of the Republic of
Poland:
1) (repealed)
1a) (repealed)
1b) (repealed)
1c) (repealed)
2) with respect to winnings in competitions, games and betting or bonuses relating to bonus sales,
subject to Article 21.1.6, 21.1.6a and 21.1.68 - in the amount of 10% of winning or bonus;
3) (repealed)
4) with respect to benefits received by retirement or disability pensioners, in connection with their
previous service based relationship, employment relationship, homework or cooperative employment
relationship with the employer, subject to Article 21.1.26 and 21.1.38 - in the amount of 10% of the
sum due;
4a) with respect to cash benefits obtained after leaving service by functionaries or uniformed services
and soldiers, in connection with their release from permanent service under separate laws, for a period
of one year every month or for a period of one year at a time, or every month for a period of three
months - in the amount of 20% of the sum due;
5) with respect to remuneration for providing assistance to the Police, fiscal control authorities,
customs officers, Border Guards, Military Information Services and Military Police or Internal
Security Agency and Intelligences Agency, paid out from the operational fund - in the amount of 20%
of the remuneration;
6) (deleted)
7) with respect to income derived from undisclosed sources or unmatched by the disclosed sources - in
the amount of 75% of income;
7a) with respect to income from savings in more than one individual pension account, within the
meaning of the regulations on individual pension accounts - in the amount of 75% of income
generated in each individual pension account;
8) (deleted)
9) (repealed)
10) (repealed)
11) (repealed)
12) (repealed)
13) with respect to one-time compensations for shortening of the notice period, paid to soldiers
dismissed from regular military service under Article 14.2 of the Act of 25 May 2001 on
Reconstruction, Technical Modernization and Financing of the Armed Forces of the Republic of
Poland in 2001-2006 (Dz.U. No. 76, item 804 and No. 85 item 925) - in the amount of 20% of
revenues;
1a. (repealed)
1b. (repealed)
1c. (repealed)
1d. (repealed)
2. (deleted)
3. The lump tax, refereed to in paragraph 1.2, 1.4, 1.4a, 1.5 and 1.13 shall be collected without
deducting deductible costs from revenues.
3a. Income, referred to in paragraph 1.7a, shall be the difference between the amount representing the
value of funds saved in an individual pension account and the sum-total of payments into that account.
That income shall not be reduced by money capital and property rights losses incurred in the tax year
and in the preceding years.
4. (deleted)
5. (repealed)
6. (deleted)
7. (deleted)
8. Income (revenues), referred to in paragraph 1, shall not be combined with income taxed in
accordance with the principles laid down in Article 27.
Art. 30a [19% lump tax]
1. Subject to Article 52a, lump tax of 19% shall be collected on income (revenues) derived from:
1) interest on loans, except when lending is an object of commercial activities;
2) interest and discounted interest on securities;
3) interest on or other revenues from funds accumulated in taxpayer's account or in other forms of
saving, depositing or investing conducted by an entity authgorized under separate regulations, with the
exception of cash and cash equivalents relating to the commercial activities performed;
4) dividends and other revenues from a share in profits of legal persons;
5) income from a share in capital funds and foreign capital funds;
6) amounts paid after the death of a member of an open pension fund to a person indicated by the
deceased or an inheritor, within the meaning of the regulations concerning organization and
functioning of pension funds, with the exception of payments, referred to in Article 21.1.59;
7) income of a member of an employee pension fund with respect to transfer of shares deposited in the
quantitative account to that fund's assets;
8) income from selling subscription rights by an employee pension fund on behalf of a member of the
fund;
9) single amounts paid out by an open pension fund to a member of the fund whose account in the
fund has been opened upon the death of the spouse;
10) income from savings in an individual pension account with respect to a return, within the meaning
of the regulations on individual pension accounts, of funds accumulated in that account;
11) income of a member of an employee pension plan to another employee pension plan with respect
to a return of funds accumulated under the plan, within the meaning of the regulations on employee
pension plans;
2. The provisions of paragraph 1.1 to 1.5 shall apply with account being taken of agreements on
avoidance of double taxation, to which the Republic of Poland is a party. However, application of the
tax rate arising from a relevant agreement on avoidance of double taxation or waiving tax collection in
accordance with such agreement is possible providing a certificate of residence has been obtained
from the taxpayer.
3. If it is not possible to identify retired participation units in investment funds, retired or redeemed
investment certificates in those funds or otherwise destroyed titles of participation in capital funds, it is
assumed that these are, as appropriate, units, certificates or titles beginning with those that were
acquired by the taxpayer first (FIFO). The principle, referred to in the first sentence, shall be applied
separately for each investment account.
4. The principle laid down in paragraph 3 shall be applied, as appropriate, to descounting securities.
5. Income, referred to in paragraph 1.5, shall not be reduced by losses incurred with respect to
participation in capital funds, foreign capital funds, as well as other losses incurred with respect to
money capital and property rights in the tax year and in the preceding years.
6. Lump tax, referred to in paragraph 1.1 to 1.4 and 1.6, 1.8 and 1.9, shall be collected without
deducting deductible costs from revenues.
7. Income (revenues), referred to in paragraph 1, shall not be combined with income taxed in
accordance with the principles laid down in Article 27.
8. Article 30.3a shall apply to income, referred to in paragraph 1.10 and 1.11.
9. Taxpayers, referred to in Article 3.1, deriving revenues (income), referred to in paragraph 1.1 to 1.5,
outside of the Republic of Poland, shall deduct from those revenues (income) the amount equal to the
tax paid abroad, though this deduction may not exceed the amount of tax assessed on those revenues
(income) at the rate of 19%.
10. If the taxpayer, referred to in Article 3.1, derives revenues (income), referred to in Article 42c.5.1
to 42c.5.3, from the sources of income located in:
1) the Republic of Austria, the Kingdom of Belgium, the Grand Duchy of Luxembourg, the
Principality of Andorra, the Principality of Lichtenstein, the Principality of Monaco, the Republic of
San Marino and the Swiss Confederation; or
2) dependent or overseas territories of the United Kingdom of Great Britain and Northern Ireland and
the Kingdom of the Netherlands, with which the Republic of Poland has signed agreements on
taxation of revenues (income) from savings of natural persons
- the tax on those revenues (income) paid in the countries, referred to in subparagraph 1, and in the
territories, referred to in subparagraph 2, shall be deducted from the amount of tax assessed in
accordance with paragraphs 1 and 9.
11. The amounts of lump tax assessed on revenues (income), referred to in paragraph 1.1 to 1.5,
derived outside of the Republic of Poland, and the amounts ofo the tax paid abroad, referred to in
paragraphs 9 and 10, have to be shown in the tax return, referred to in Article 45.1 or 45.1a.
Art. 30b [19% tax on selling shares and financial instruments]
1. The tax on income derived as a result of selling securities or derivative financial instruments, and as
a result of exercise of their underlying rights, and as a result of selling shares in incorporated
companies or receiving shares (stocks) in incorporated companies or shares in cooperatives in
exchange for a contribution in kind in the form other than an undertaking or an organized part thereof,
shall amount to 19% of income derived.
2. Income, referred to in paragraph 1, shall be:
1) the difference between the sum total of revenues obtained as a result of selling securities, and
deductible costs, determined in accordance with Article 22.1f or 22.1g, or Article 23.1.38, subject to
Article 24.13 and 24.14.;
2) the difference between the sum total of revenues obtained as a result of exercising underlying rights,
referred to in Article 3.(b) of the Act on Public Trading in Securities, and deductible costs, determined
in accordance with Article 23.1.38a;
3) the difference between the sum total of revenues obtained as a result of selling derivative financial
instruments and exercising underlying rights, and deductible costs, determined in accordance with
Article 23.1.38a;
4) the difference between the sum total of revenues obtained as a result of selling shares in
incorporated companies, and deductible costs, determined in accordance with Article 22.1f or Article
23.1.38;
5) the difference between the par value of shares (stocks) received in incorporated companies, shares
in cooperatives in exchange for a contribution in kind other than an undertaking or an organized part
thereof, and deductible costs determined in accordance with Article 22.1e

- attained within the tax year.

3. The provisions of paragraph 1 shall apply with account being taken of agreements on avoidance of
double taxation, to which the Republic of Poland is a party. However, application of the tax rate
arising from a relevant agreement on avoidance of double taxation or waiving tax collection in
accordance with such agreements is possible providing the taxpayer has a certificate of residence.
4. The provision of paragraph 1 shall not apply, if selling of securities and derivative financial
instruments and exercise of underlying rights takes place in performance of commercial activities.
5. Income, referred to in paragraph 1, shall not be combined with income taxed in accordance with the
principles laid down in Article 27 or Article 30c.
5a. If the taxpayer, referred to in Article 3.1, has derived income, referred to in paragraph 1, both in
and outside of the territory of the Republic of Poland, those incomes shall be combined and the
amount equal to income tax paid abroad shall be deducted from the tax assessed on the sum total of
those incomes. However, that deduction may not exceed that portion of income tax calculated before
the deduction, which is prorated for income obtained abroad.
5b. If the taxpayer, referred to in Article 3.1, derives income exclusively from activities performed
outside of the territory of the Republic of Poland, the principle laid down in paragraph 5a shall apply,
as appropriate.
5c. If the taxpayer, referred to in Article 3.1, derives revenues (income), referred to in Article 42c.5.4,
from the sources of income located in:
1) the Republic of Austria, the Kingdom of Belgium, the Grand Duchy of Luxembourg, the
Principality of Andorra, the Principality of Lichtenstein, the Principality of Monaco, the Republic of
San Marino and the Swiss Confederation; or
2) dependent or overseas territories of the United Kingdom of Great Britain and Northern Ireland and
the Kingdom of the Netherlands, with which the Republic of Poland has signed agreements on
taxation of revenues (income) from savings of natural persons
- the tax on those revenues (income) paid in the countries, referred to in subparagraph 1, and in the
territories, referred to in subparagraph 2, shall be deducted from the amount of tax assessed in
accordance with paragraphs 1, 5a and 5b.
6. After the end of the tax year, the taxpayer shall be obliged in the tax return, referred to in Article
45.1a.1, show income derived in the tax year from selling securities, including also income, referred to
in Article 24.14, and income from selling derivative financial instruments, as well as income from
exercise of underlying rights, and from selling shares in incorporated companies and from receiving
shares (stocks) in incorporated companies or shares in cooperatives in exchange for a contribution in
kind in the form other than an undertaking or an organized part thereof, and calculate income tax due.
7. The provision of Article 30a.3 shall apply, as appropriate.
8. The minister competent for public finance shall announce in the Official Journal of the Republic of
Poland "Monitor Polski", the list of territories, referred to in paragraph 5c.2 and Article 30a.10.2.
Art. 30c [Tax on income from non-agricultural commercial activities]
1. Income tax on income from non-agricultural commercial activities derived by the taxpayers,
referred to in Article 9a.2, subject to Article 29, 30, 30d and Article 44.4, shall amount to 19% of the
taxable base.
2. The taxable base, referred to in paragraph 1, shall be income determined in accordance with Article
9.1, 9.2, 9.3, 9.3a and 9.5, Article 24.1 and 24.2 or Article 24b.1 and 24b.2 or Article 25. From that
income, the taxpayers may deduct social security contributions, referred to in Article 26.1.2 letter (a).
The amount of contributions shall be determined on the basis of documents certifying their incurrence.
3. Social security contributions, referred to in Article 26.1.2 letter (a), shall be income deductible
providing they have not been:
1) included in deductible costs; or
2) deducted from income taxed in accordance with the principles laid down in Article 27; or
3) deducted from revenues pursuant to Article 3 of the Act on Lump Income Tax.
4. If the taxpayer, referred to in Article 3.1, also derives income from non-agricultural commercial
activities performed outside of the territory of the Republic of Poland or from sources of income
located outside of the territory of the Republic of Poland, and that income is not tax exempt under an
agreement on avoidance of double taxation, that income shall be combined with income from sources
located in the territory of the Republic of Poland. In that case the amount equal to income tax paid in
the foreign state shall be deducted from the tax calculated for the sum total of incomes. However, that
deduction may not exceed that portion of income tax calculated before the deduction, which is
prorated for income obtained in a foreign state. The provisions of paragraph 11.3 and 11.4 shall apply,
as appropriate.
5. If the taxpayer, referred to in Article 3.1, derives income exclusively from non-agricultural
commercial activities performed outside of the territory of the Republic of Poland or from sources of
income located outside of the territory of the Republic of Poland, the principle laid down in paragraph
4 shall apply, as appropriate.
6. Income from non-agricultural commercial activities, taxed in a manner described in paragraph 1,
shall not be combined with income taxed in accordance with the principles laid down in Article 27 or
Article 30b.
Art. 30d [50% tax]
1. Should the competent tax authority or the competent fiscal control authority determine, pursuant to
Article 25, income of the taxpayer in the amount higher (loss in the amount lower) than declared by
the taxpayer in connection with the transaction, referred to in Article 25a, and the taxpayer has not
presented those authorities with tax documentation required under those provisions - the difference
between income declared by the taxpayer and determined by those tax authorities shall be taxed at the
rate of 50%.
2. The provision of paragraph 1 shall apply to taxpayers, whose income is taxed in accordance with
the principles laid down in Article 27 or Article 30c.

Chapter 7. Collection of tax or withholding tax by withholding agents.

Art. 31 [Withholding agents - employers] Natural persons, legal persons and organizational entities
without legal personality, hereinafter called "employers", shall be obliged as withholding agents assess
and collect in the course of the year withholding income tax from persons, who obtain revenues from
those employers under the service based relationship, employment relationship, homework or
cooperative employment relationship, cash social security benefits paid by employers, and in work
cooperatives - payments with respect to a share in the balance-sheet surplus.
Art. 32 [Withholding tax Amount]
1. Withholding tax, referred to in Article 31, for the months from January to December, subject to
paragraph 1a, shall amount to:
1) for the months from the beginning of the year to the month, inclusive, in which the taxpayer's
income obtained from the beginning of the year from that employer exceeded the ceiling of the first
bracket - 19% of income obtained in a given month;
2) for the months following the month, in which income obtained from the beginning of the year
exceeded the amount, referred to in subparagraph 1 - 30% of income obtained in a given month;
3) for the months following the month, in which income obtained from the beginning of the year
exceeded the ceiling of the second bracket - 40% of income obtained in a given month;
4) for the months following the month, in which income obtained from the beginning of the year
exceeded the ceiling of the third bracket - 50% of income obtained in a given month.
1a. Should the taxpayer submit a declaration to the withholding agent, that in a given tax year he
intends to have his income taxed together with the spouse or in accordance with the principles laid
down in Article 6.4, in that tax year the expected and declared:
1) taxpayer's income will not exceed the ceiling of the first bracket, and the spouse or child, as
appropriate, do not have any income except a family benefit - the withholding tax for months of the
tax year shall amount to 19% of income obtained in a given month and shall be additionally reduced
each month by the amount equal to 1/12 of the tax deductible amount, applicable for the first bracket
of the tax scale;
2) taxpayer's income exceeds the ceiling of the first, second or third bracket, and the spouse or child,
as appropriate, do not have any income except a family benefit of spouse's income falls within the
lower brackets - the withholding tax shall amount to:
a) for the months from the beginning of the year to the month, inclusive, in which taxpayer's income
exceeded the ceiling of the second bracket - 19% of income obtained in a given month;
b) for the months following the month, in which taxpayer's income exceeded the amount, referred to in
letter a) - 30% of income obtained in a given month;
c) for the months following the month, in which taxpayer's income exceeded the ceiling of the third
bracket - 40% of income obtained in a given month.
1b. The withholding agents, to whom the taxpayer submitted a declaration, referred to in paragraph 1a,
shall collect withholding tax in accordance with the principles laid down in paragraph 1a.1 and 1a.2
beginning with the month following the month in which the declaration was submitted.
1c. In case of a factual change of the situation allowing for withholding tax reduction or loss of the
possibility to have income taxed in accordance with Article 6, the taxpayer shall be obliged to inform
the withholding agent thereof; in such case, from the month following the month in which the taxpayer
ceased to meet the withholding tax reduction requirements, withholding tax shall be collected in
accordance with the principles laid down in paragraph 1.
1d. (deleted)
2. Income, referred to in paragraph 1 and 1a, shall be the revenues within the meaning of Article 12
and social security cash benefits paid by the withholding agent, obtained in the month, net of
deductible costs in the amount, referred to in Article 22.2.1 or 22.2.3, and net of social security
contributions, referred to in Article 26.1.2 letter (b), deducted in a given month by the withholding
agent. If non-cash benefits, performances done in lieu of the taxpayer or other free-of-charge
performances are due to the taxpayer for a period longer than one month, withholding tax for
individual months shall be calculated on the basis of the amount prorated for one month. Should it be
impossible to prorate those performances for one month, and adding the entire amount in the month in
which they were obtained would result in a disproportionately large withholding tax in relation to the
money paid out, at taxpayer's request the employer shall limit the withholding tax collected in that
month and shall collect the remainder in the subsequent months of the tax year.
3. The withholding tax, calculated in a manner described in paragraphs 1, 1a and 2, shall be reduced
by the amount equal to 1/12 of the tax deductible amount, applicable for the first bracket of the tax
scale, if before first payment of remuneration in the tax year the employee submits a declaration to the
employer in accordance with the specified sample, in which he states that he:
1) does not receive a retirement or disability pension through the withholding agent;
2) does not receive income with respect to membership in a farming or other agricultural production
cooperative;
3) does not derive income, on which he would be obliged to pay withholding tax pursuant to Article
44.3;
4) does not receive cash benefits from a labour office or a local office of the Guaranteed Employee
Benefits Fund;
5) identifies this employer as authorized to apply the deduction, referred to above, in case the taxpayer
at the same time obtains income from other employers under service relationship, employment
relationship, cooperative employment relationship or homework relationship.
3a. The declaration, referred to in paragraph 3, shall not be submitted, if the facts arising from the
declaration submitted in previous years have not changed.
3b. The withholding tax, calculated in a manner described in paragraph 3, shall be reduced, subject to
Article 27b.1.2 and 27b.2, by the amount of the health insurance contribution, collected in that month
by the employer pursuant to the regulations concerning publicly financed health care benefits.
4. The employer shall not reduce the withholding tax in a manner described in paragraph 3, if the
taxpayer notified the employer of the changes in the declared facts.
5. Calculating the withholding tax the employer shall make allowance for deductible costs referred to
in Article 22.2.3, if the employee has submitted a declaration concerning satisfaction of the
requirements laid down in that provision; the provisions of paragraphs 3a and 4 shall apply, as
appropriate.
Art. 33 [Withholding agents - farming cooperatives withholding tax]
1. Farming cooperatives and other cooperatives involved in agricultural production shall be obliged, as
withholding agents, to collect withholding income tax on payments made to cooperative members or
members of their households on daily pays, cooperative profit sharing, as well as cash social security
benefits received by those persons from the cooperative.
2. The withholding tax, referred to in paragraph 1, for the months from January to December shall be
determined in a manner described in Article 32.1 to 32.1c, net of the amount calculated in accordance
with Article 32.3 monthly.
3. The withholding tax on daily pays shall be calculated with respect to the part thereof prorated in line
with the share of income exempted from corporate income tax pursuant to Article 17.1.15 of the
Corporate Income Tax Act of 15 February 1992 (Dz.U. of 1993 No. 106, item 482 and No. 134, item
646, of 1994 No. 1, item 2, No. 43, item 163, No. 80, item 368, No. 87, item 406, No. 90, item 419,
No. 113, item 547, No. 123, item 602 and No. 127, item 627, of 1995 No. 5, item 25, No. 86, item
443, No. 96, item 478, No. 133, item 654 and No. 142, item 704, of 1996 No. 25, item 113, No. 34,
item 146, No. 90, item 405, No. 137, item 639 and No. 147, item 686, of 1997 No. 9, item 44, No. 28,
item 153, No. 79, item 484, No. 96, item 592, No. 107, item 685, No. 118, item 754, No. 121, item
770, No. 123, item 776 and 777, No. 137, item 926, No. 139, item 932, 933 and 934, No. 140, item
939 and No. 141, item 945, of 1998 No. 60, item 383, No. 108, item 685, No. 117, item 756, No. 137,
item 877, No. 144, item 931 and No. 162, item 1112 and 1121 and of 1999 No. 49, item 484, No. 62,
item 689 and No. 95, item 1101), in the total amount of daily pays, net of pension and sickness
insurance contributions, referred to in Article 26.1.2 letter b), deducted by the withholding agent in a
given month and calculated with respect to taxable income, in the year preceding the tax year. If
income, referred to in the preceding sentence, did not occur in the year preceding the tax year, the
withholding agents, referred to in paragraph 1, shall not collect withholding tax in the tax year.
3a. The withholding tax, referred to in paragraph 1, calculated in a manner described in paragraphs 2
and 3, shall be reduced, subject to Article 27b.1.2 and 27b.2, by the amount of the health insurance
contribution, collected in that month by the cooperative pursuant to the regulations concerning
publicly financed health care benefits.
4. Upon the end of the tax year the withholding agents, referred to in paragraph 1, shall determine for
that year, in accordance with the principles arising from paragraph 3, the share of income exempted
from corporate income tax in the total amount of daily pays and the amount of social security and
health insurance contributions calculated on taxable income and assess the tax in accordance with
Articles 37-40.
5. In the accounting records of incomes and costs kept by farming cooperatives or other cooperatives
involved in agricultural production, incomes and costs relating to agricultural plant and animal
production not consisting in conducting special sectors of agricultural production shall be recorded
separately.
6. The principles applicable, as appropriate, to the recording of incomes and costs with respect to
cooperative's activities as a whole, shall apply, as appropriate, to determination of separated incomes
and costs of the activities, referred to in paragraph 5.
Art. 34 [Withholding agents - social security bodies withholding tax]
1. Social security bodies shall be obliged, as withholding agents, to collect monthly withholding tax on
retirement and disability pensions, pre-retirement benefits and pre-retirements allowances, social
security benefits, structural pensions, social pensions.
2. The withholding tax, referred to in paragraph 1, for the months from January to December shall be
determined in a manner described in Article 32.1 to 32.1c, net of the amount calculated in accordance
with Article 32.3 monthly.
2a. At taxpayer's request, the social security body shall calculate and collect withholding tax in the
course of the year without deducting the amount, referred to in Article 32.3, beginning with the month
following the month in which the request was filed.
3. The withholding tax, referred to in paragraph 1, on social security benefits paid directly by the
social security body shall amount to 19% of the amount of the benefits.
4. The withholding tax, calculated in a manner described in paragraph 3, shall be reduced by the
amount calculated in accordance with Article 32.3, if:
1) payment of benefits refers to a period of a full calendar month and is connected with remaining in
the service relationship, employment relationship, homework relationship or cooperative employment
relationship
2) together with the documentation underlying benefit payment the benefit recipient has provided the
social security body with a declaration in accordance with the specified sample, in which he states that
within the benefit-taking period he:
a) does not receive a retirement or disability pension through the withholding agent;
b) does not receive any other income besides income obtained from the employer, whose employment
insurance is a basis of benefit entitlement;
c) the employer, referred to in litter b), assesses withholding tax on employee's income in a manner
described in Article 32.3;
d) does not receive cash benefits from a labour office or a local office of the Guaranteed Employee
Benefits Fund;

The provision of Article 32.4 shall apply, as appropriate.

4a. The withholding tax, calculated in a manner described in paragraph 2, shall be reduced, subject to
Article 27b.1.2 and 27b.2, by the amount of the health insurance contribution, collected in that month
by the social security body pursuant to the regulations concerning publicly financed health care
benefits.
5. (repealed)
6. If benefits are paid directly by the social security body after retirement, the principles laid down in
paragraphs 3 and 4 and in Article 32.3 shall apply, as appropriate.
7. Social security bodies shall be obliged, by the end of February, upon the end of the tax year to,
prepare and forward annual tax assessment, in accordance with the specified sample, to taxpayers
obtaining income from retirement and disability pensions, structural pensions, social pensions, pre-
retirement benefits and pre-retirement allowances, and to the fiscal office led by the head of fiscal
office competent for taxpayer's place of residence, and in case of taxpayers, referred to in Article 3.2a,
to the fiscal office led by the head of fiscal office competent for matters of taxation of aliens. that
obligation shall not apply to the taxpayers:
1) for whom the obligation to collect withholding tax has ceased;
2) for whom withholding tax was determined in a manner described in Article 32.1a to 32.1c, unless
the taxpayer by the end of the tax year files a declaration waiving the taxation in a manner described in
Article 6.2 or 6.4.
8. If the social security body is not obliged to prepare the annual tax assessment, referred to in
paragraph 7, it shall prepare by the end of February, upon the end of the tax year, a personalized
information on the amount of income, in accordance with the specified sample, as within the same
time limit shall forward it to the taxpayer and to the fiscal office led by the head of fiscal office
competent for taxpayer's place of residence, and in case of taxpayers, referred to in Article 3.2a, to the
fiscal office led by the head of fiscal office competent for matters of taxation of aliens. The social
security body shall prepare the information, referred to in the first sentence, also when it pays benefits,
referred to in Article 21.1.2, 21.1.75 and 21.1.100.
9. If apart from income obtained from the social security body the taxpayer:
1) has not obtained in the tax year other income, with the exception of income referred to in Articles
28, 30, 30a and 30b;
2) does not make use of deductions, subject to paragraph 10-10b:
3) does not make use of the possibility of having income taxed together with spouse's income or does
not make use of the possibility of taxation, referred to in Article 6.4.
4) has not obtained income requiring the tax due to be assessed in a manner described in Article 27.8;
5) does not reduce tax in accordance with the principles laid down in Article 27d;
6) is not obliged to add the amounts that have been previously deducted, subject to paragraph 11, the
tax arising from the annual assessment, reduced, subject to Article 27b.1.2 and 27b.2, by the amount
of the health insurance contribution, collected in the tax year by the social security body pursuant to
the regulations concerning publicly financed health care benefits, shall be the tax due from the
taxpayer for a given year, unless the head of fiscal office issues a decision setting the tax due in a
different amount.
10. If the taxpayer returned undue retirement and disability pensions, social security benefits,
structural pensions, social pensions pre-retirement benefits and pre-retirements allowances, received
directly from that body, and the obligation to collect withholding tax by that body continues - the
social security body shall deduct from income the amounts returned in the tax year while determining
the amount of the withholding tax and in the annual assessment, making an appropriate note on that
assessment.
10a. If the taxpayer has been granted entitlement to a retirement pension, disability pension,
educational allowance, social pension, family allowance, structural pension or social security benefits,
for the period in which the taxpayer received those benefits from another social security body in the
amount net of the withholding tax and the health insurance contribution - the social security body shall
deduct those amounts from the benefit granted while determining the amount of the withholding tax
and in the annual assessment, making an appropriate note on that assessment.
10b. If the taxpayer has been granted entitlement to a retirement pension, disability pension,
educational allowance, social pension, family allowance, structural pension or social security benefits,
for the period in which the taxpayer received an allowance, educational allowance, scholarship or
another cash benefit for remaining jobless, or a pre-retirement benefit or pre-retirement allowance, the
amounts received net of the withholding tax and the health insurance contribution - shall be deducted
by the social security body from the benefit granted while determining the amount of the withholding
tax and in the annual assessment, making an appropriate note on that assessment.
11. If the taxpayer received directly from that body a refund of the previously paid and deducted
health insurance contribution, and the obligation to collect withholding tax by that body continues - in
the annual tax assessment for the year in which the contribution was refunded the social security body
shall deduct the amount of that contribution to the tax calculated in accordance with Article 27.
12. The difference between the tax arising from the annual tax assessment and the sum total of
withholding tax collected for the months from January to December shall be collected from income for
March or April of the following year. The taxpayers shall pay the received difference to the account of
the fiscal office, led by the head of fiscal office competent for the place of residence of the taxpayer,
together with the withholding tax for those months. If the annual tax assessments has shown an
overpayment, it shall be credited to the withholding tax due for March, and if overpayment remains
after that withholding tax has been collected, the withholding agent shall return it to the taxpayer in
cash. If the relationship underlying the collection of withholding tax ceased in January or February,
the difference shall be collected from income for the month for which the last withholding tax was
collected. The withholding agent shall deduct the overpayments returned in cash from the amounts of
withholding tax transferred to fiscal offices, showing them in the return, referred to in Article 38.1.
Art. 35 [Other withholding agents withholding tax]
1. The following entities shall be obliged to collect monthly withholding tax as withholding agents:
1) legal persons and their organizational units paying foreign retirement and disability pensions - on
retirement and disability pensions paid;
2) organizational units of academic schools, research centres, work establishments and other
organizational units - on scholarships paid;
3) labour offices - on benefits paid from the Labour Fund;
3a) local offices of the Guaranteed Employee Benefits Fund on benefits paid from the Guaranteed
Employee Benefits Fund;
4) remand prisons and penitentiary institutions - on amounts due for work performed by detainees
awaiting trial and convicts;
5) cooperatives - on interest on cash contributions of cooperative members, charged to cooperative's
costs;
6) units of the Military Housing Agency - on cash benefits paid to soldiers under the provisions of the
Act on Quarters for the Armed Forces of the Republic of Poland;
7) social integration centre - on integration benefits paid, granted under the Act of 13 June 2003 on
Social Employment (Dz. U. No. 122, item 1143)
- net of retirement and disability insurance contributions and sickness insurance contributions, referred
to in Article 26.1.2, deducted by the withholding agent in a given month.
2. Scholarships, referred to in paragraph 1.2, shall be, in particular, scholarships granted to doctoral
students, research scholarships, scholarships and other amounts received by persons delegated abroad
for research, teaching or training, grants for resolving research and implementation assignments, and
scholarships awarded to day students for scholarly achievements and scholarships awarded by the
minister for scholarly achievements.
3. The withholding tax, referred to in paragraph 1.1, 1.2, 1.4 and 1.7, for the months from January to
December, shall be calculated in a manner described in Article 32.1 to 32.1c, with the proviso that in
case of collection of withholding tax on foreign retirement and disability pensions the provisions of an
agreement on avoidance of double taxation concluded with the originating state shall be applied.
3a. Upon the receipt of the retirement or disability pension, referred to in paragraph 3, the taxpayer
may pay the determined withholding tax to the withholding agenet in PLN. That payment shall be
considered to be the withholding tax deducted by the withholding agent.
4. The withholding tax, calculated in a manner described in paragraph 3, shall be reduced by the
amount, referred to in Article 32.3, if the withholding tax is collected by the withholding agents,
referred to in paragraph 1.1, 1.2, 1.4 and 1.7, and the taxpayer submitted a declaration to the
withholding agent before the first payment of the amount due in the tax year or by the end of the
month in which he started to obtain such income, in accordance with the specified sample, that he does
not obtain concurrently other income, with the exception of income, referred to in Articles 28, 30, 30a
to 30c.
5. The withholding tax on income, referred to in paragraph 1.3 and 1.3a, shall be collected in the
amount of 19% of revenues, net of the amount, referred to in Article 32.3.
6. The withholding tax on income, referred to in paragraph 1.5 and 1.6, shall be collected in the
amount of 19% of revenues.
7. (repealed)
8. (deleted)
9. The withholding tax, referred to in paragraph 1, calculated in a manner described in paragraphs 3 to
8, shall be reduced, subject to Article 27b.1.2 and 27b.2, by the amount of the health insurance
contribution, collected in that month by the withholding agent pursuant to the regulations concerning
publicly financed health care benefits.
10. The entities paying the scholarships, referred to in Article 21.1.40b, shall be obliged to prepare, by
the end of February of the year following the tax year, an information on the amount of the scholarship
paid, in accordance with the specified sample, and forward it to the taxpayer and to the fiscal office led
by the head of fiscal office competent for taxpayer's place of residence, subject to Article 37.
Art. 36 [Withholding tax on unincreased retirement pensions] In relation to the taxpayers, whose
revenues derive exclusively from retirement and disability pensions not subject to raising in
accordance with Article 55.6, the provisions of Article 27b.2 shall apply, as appropriate, to
determination of the withholding tax and preparation of the annual assessment, with the proviso that
the withholding tax shall be set in the amount of the surplus above 1/12 of the amount specified in that
provision.
Art. 37 [Annual tax assessment]
1. If the taxpayer, from whom withholding tax is collected by the withholding agents, referred to in
Article 31, Article 33 or Article 35.1.1, 35.1.2, 35.1.4 and 35.1.7, submits, by 10 January of the year
following the tax year, to the withholding agent a declaration prepared in accordance with the
specified sample, which shall be treated on a par with a tax return, that:
1) apart from income obtained from the withholding agent has not obtained other income, with the
exception of income referred to in Articles 28, 30, 30a and 30b;
2) does not make use of deductions, subject to paragraph 1a.2 to 1a.4;
3) does not make use of the possibility of having his income taxed in accordance with the principles
laid down in Article 6.2 or 6.4;
4) does not reduce tax in accordance with the principles laid down in Article 27d;
5) is not obliged to add the amounts that have been previously deducted, subject to paragraph 1a.5
- the withholding agent shall be obliged to prepare, in accordance with the specified sample, an annual
tax assessment, in accordance with the principles laid down in Article 27, on income obtained by the
taxpayer in the tax year.
1a. Preparing the annual tax assessment, referred to in paragraph 1, the withholding agent shall:
1) take into account the costs, referred to in Article 22.11;
2) deduct from income retirement and disability insurance contributions and sickness insurance
contributions, referred to in Article 26.1.2 letter (b), deducted during the year;
3) at taxpayer's request, deduct from income:
a) (repealed)
b) benefits, referred to Article 26.1.5, returned to the taxpayer - if not deducted from income upon
collection of the withholding tax;
4) deduct from the tax the amount of the health insurance contribution collected in accordance with the
regulations concerning publicly financed health care, subject to Article 27b.1.2 and 27b.2;
5) add to the tax, calculated in accordance with Article 27, the refund of the previously paid and
deducted health insurance contribution, referred to in the Act of 27 August 2004 on Publicly Financed
Health care (Dz.U. No. 210, item 2135).
1b. The tax arising from withholding agent's annual assessment shall be the income tax due from the
taxpayer for a given year, unless the head of fiscal office issues a decision setting a different amount of
income tax due.
2. (repealed)
3. Withholding agents shall prepare the annual tax assessment, referred to in paragraph 1, by the end
of February upon the end of the tax year, and within the same time limit forward it to the taxpayer and
to the fiscal office led by the head of fiscal office competent for taxpayer's place of residence, and in
case of withholding agents, referred to in Article 3.2a, to the fiscal office led by the head of fiscal
office competent for matters of taxation of aliens.
4. The difference between the tax arising from the annual tax assessment and the sum total of
withholding tax collected for the months from January to December shall be collected from income for
March of the following year. At taxpayer's request, that difference shall be collected from income for
April of the following year. If the relationship underlying the collection of withholding tax ceased in
January or February, the difference shall be collected from income for the month for which the last
withholding tax was collected. The taxpayers shall pay the received difference to the account of the
fiscal office, led by the head of fiscal office competent for the place of residence of the taxpayer,
together with the withholding tax for those months. If the annual tax assessments has shown an
overpayment, it shall be credited to the withholding tax due for March, and if overpayment remains
after that withholding tax has been collected, the withholding agent shall return it to the taxpayer in
cash. The withholding agent shall deduct the overpayments returned in cash from the amounts of
withholding tax transferred to fiscal offices, showing them in the return, referred to in Article 38.1.
Art. 38 [Time limits for transferring withholding tax and annual tax]
1. The withholding agents, referred to in Article 31 and Articles 33-35, shall transfer, subject to
paragraphs 2 and 2a, the amounts of collected withholding tax by the 20-th day of the month following
the month in which the withholding tax was collected, to the account of the fiscal office led by the
head of fiscal office competent for the withholding agent's place of residence, and if the withholding
agent is not a natural person, for the registered office or place of business if the withholding agent
does not have a registered office, at the same time sending a tax return in accordance with the
specified sample; if there is a difference between the amount of the tax deducted and the amount of tax
paid, it should be explained in the return.
2. The withholding agents operating as sheltered work establishments or occupational activation
establishments shall transfer the collected amounts of withholding tax on incomes, referred to in
Article 12, and on cash social security benefits paid through those withholding agents:
1) for the months from the beginning of the year to the month, inclusive, in which the taxpayer's
income obtained from the beginning of the year from that withholding agent exceeded the ceiling of
the first bracket of the scale, referred to in Article 27.1:
a) 10% to the State Fund for Rehabilitation of the Disabled;
b) 90% to the company's fund for rehabilitation of the disabled;
2) for the months following the month, in which taxpayer's income obtained from the beginning of the
year from that withholding agent exceeded the amount, referred to in subparagraph 1 - in accordance
with the principles laid down in paragraph 1.
2a. The withholding agents, referred to in Article 31, who lost their status of sheltered work
establishments, employing disabled persons, shall transfer the collected amounts of withholding tax on
incomes of those persons, referred to in Article 12, and on cash social security benefits paid through
those withholding agents:
1) for the months from the beginning of the year to the month, inclusive, in which the disabled
person's income obtained from the beginning of the year from that withholding agent exceeded the
ceiling of the first bracket of the scale, referred to in Article 27.1:
a) 25% to the company's fund for rehabilitation of the disabled - in case of withholding agents
attaining 25-30% of the disabled employment index;
b) 50% to the company's fund for rehabilitation of the disabled - in case of withholding agents
attaining 30-35% of the disabled employment index;
c) 75% to the company's fund for rehabilitation of the disabled - in case of withholding agents
attaining 35-40% of the disabled employment index;
d) 100% to the company's fund for rehabilitation of the disabled - in case of withholding agents
attaining 40% of the disabled employment index

- the remaining part in accordance with the principles laid down in paragraph 1;

2) for the months following the month, in which the disabled person's income obtained from the
beginning of the year from that withholding agent exceeded the amount, referred to in subparagraph 1,
the withholding agents shall transfer the collected amounts of withholding tax in accordance with the
principles laid down in paragraph 1.
2b. The disabled employment index, referred to in paragraph 2a, shall be determined pursuant to
Article 21.1 and 21.5 and Article 28.3 of the Occupational Rehabilitation Act.
2c. The provisions of paragraphs 2a and 2b shall apply within 5 years from the end of the year, in
which the withholding agent lost his status as a sheltered work establishment, providing he meets the
requirements laid down in the provisions of the Occupational Rehabilitation Act.
3. (repealed)
4. (repealed)
5. (repealed)
Art. 39 [Information for the taxpayer]
1. By the end of February of the year following the tax year, the withholding agents, referred to in
Article 31, Article 33 and Article 35, in case they do not prepare an annual tax assessment, should
transfer to the taxpayer and to the fiscal office led by the head of fiscal office competent for taxpayer's
place of residence, and in case of taxpayers, referred to in Article 3.2a, to the fiscal office led by the
head of fiscal office competent for matters of taxation of aliens - personalized information prepared in
accordance with the specified sample, subject to paragraph 5. The information, referred to in the first
sentence, shall be prepared also in case of payment of benefits, referred to in Article 21.1.46 and
21.1.74.
2. If the obligation to collect withholding tax by the withholding agents, referred to in Article 31,
Article 33 and Article 35, ceased during the year, those withholding agents shall be obliged to prepare
the information, referred to in paragraph 1, and transfer it to the taxpayer and the fiscal office led by
the head of fiscal office competent for the withholding agent's place of residence or to the fiscal office
led by the head of fiscal office competent for matters of taxation of aliens, by the 15-th day of the
month following the month, in which the withholding tax was last collected, subject to paragraph 5.
3. Natural persons conducting commercial activities, legal persons and their organizational units, as
well as organizational entities without legal personality shall be obliged, by the end of February of the
year following the tax year, to transfer to the taxpayer and to the fiscal office led by the head of fiscal
office competent for taxpayer's place of residence, and in case of taxpayers, referred to in Article 3.2a,
to the fiscal office led by the head of fiscal office competent for matters of taxation of aliens -
personalized information on the amount of income, referred to in Article 30b.2, prepared in
accordance with the specified sample.
4. At a written request of the taxpayer, referred to in Article 3.2a, in connection with his intention to
leave the territory of the Republic of Poland, the entity, referred to in paragraph 3, within 14 days from
filing of that request, shall be obliged to prepare the information, referred to in paragraph 3, and send it
to the fiscal office led by the head of fiscal office competent for matters of taxation of aliens.
5. The withholding agents, referred to in Article 35.1.2, who exclusively pay to the taxpayers
scholarships, referred to in Article 21.1.40b, shall prepare only the information, referred to in Article
35.10.
Art. 40 [Direct payment of withholding tax] The taxpayers, referred to in Articles 31, 33, 34 and 35,
who derive other income, as to which withholding agents are not obliged to collect withholding tax,
shall be obliged to pay withholding tax on that income in accordance with the principles laid down in
Article 44.3a.
Art. 41 [Withholding tax Lump income tax]
1. Natural persons conducting commercial activities, legal persons and their organizational units, as
well as organizational entities without legal personality, making payments of amounts due to the
persons, referred to in Article 3.1, on activities, referred to in Article 13.2 and 13.4 to 13.9 and Article
18, shall be obliged, as withholding agents, to collect, subject to paragraph 4, withholding income tax
in the amount of 19% of the amount due net of deductible costs in the amount specified in Article
22.9, and net of the retirement and disability pension and sickness insurance contributions, referred to
in Article 26.1.2 letter (b), deducted by the withholding agent in a given month.
1a. The withholding tax on income, referred to in paragraph 1, calculated in a manner described in this
provision, shall be reduced, subject to Article 27b.1.2 and 27b.2, by the amount of the health insurance
contribution collected by the withholding agent, referred to in paragraph 1, pursuant to the regulations
concerning publicly financed health care benefits.
2. The withholding agents shall not be obliged to collect withholding tax on the amounts due paid
under contracts of for a specific task or mandate contracts (umowa o dzieo or umowa zlecenia),
referred to in Article 13.2 and 13.8, if the taxpayer submits a declaration, that the services he renders
are included in the conducted commercial activities, referred to in Article 10.1.3.
3. (deleted)
3a. (deleted)
4. The withholding agents, referred to in paragraph 1, shall be obliged to collect lump income tax on
payments (performances) made or cash or cash equivalents made available to the taxpayer under the
titles, described in Article 29, Article 30.1.2, 30.1.4, 30.1.4a, 30.1.5 and 30.1.13, and Article 30a.1,
subject to Article 5.
4a. (repealed)
4b. (repealed)
4c. An acquiring or newly established company shall be obliged, as a withholding agent, to collect
withholding income tax, referred to in Article 30a.1.4, on income, referred to in Article 24.5.7.
5. Should income be appropriated for increasing the initial or share capital, and the share fund in
cooperatives, the withholding agents, referred to in paragraph 4, shall collect lump income tax within
14 days from the date on which the decision of the registration court on making an entry of the
increase of the initial or share capital, and in cooperatives from the date on which a resolution
concerning the increase of the share fund was adopted.
5a. (repealed)
6. (repealed)
6a. (repealed)
7. If the object of:
1) winnings (prizes), referred to in Article 30.1.2;
2) benefits, referred to in Article 30.1.4
-) is not money, the taxpayer shall be obliged to pay to the withholding agent the amount of income
tax due prior to collecting the winning or benefit.
8. The taxpayer obtaining income, referred to in Article 24.5.7, shall be obliged to pay to the
withholding agent the amount of income tax due prior to the time limit specified in Article 42.1.
Art. 41a [Increase of the withholding tax] The withholding agents, referred to in Articles 31, 33-35,
41.1, at taxpayer's request shall calculate and collect during the year higher withholding income tax,
applying instead of the 19% rate, as appropriate, the rate of 30%, 40% or 50%.
Art. 41b [Taking account of returned benefits] If the taxpayer returned unduly collected benefits,
which were previously added to taxable income, assessing the tax (withholding tax) the withholding
agents, referred to in Article 31, 33, 35 and 41, shall deduct from income the returned amount,
together with the collected tax (withholding tax).
Art. 42 [Time limits for transferring withholding tax and annual tax]
1. The withholding agents, referred to in Article 41, shall transfer the amounts of collected
withholding tax and the amounts of lump tax by the 20-th day of the month following the month in
which the withholding tax (lump tax) was collected - to the account of the fiscal office led by the head
of fiscal office competent for the withholding agent's place of residence, and if the withholding agent
is not a natural person, for the registered office or place of business if the withholding agent does not
have a registered office, at the same time sending tax returns in accordance with the specified sample.
2. By the end of February of the year following the tax year, the withholding agents, referred to in
paragraph 1, shall be obliged to send to the taxpayers, referred to in:
1) Article 3.1, and to fiscal offices led by heads of fiscal officies competent for taxpayer's place of
residence - personalized information on the amount of income, prepared in accordance with the
specified sample;
2) Article 3.2a, and to fiscal offices led by heads of fiscal officies competent for matters of taxation of
aliens - personalized information on the amount of revenues, prepared in accordance with the specified
sample, also when the withholding agent during the tax year prepared and transferred information in
accordance with the procedure provided for in paragraph 4.
3. Should the withholding agent cease to operate by the end of February of the year following the tax
year, the withholding agent shall transfer the information, referred to in paragraph 2, by the time limit
until ceasing operations.
4. At a written request of the taxpayer, referred to in Article 3.2a, the withholding agent shall be
obliged, within 14 days from the date of filing that request, to prepare and send to the fiscal office led
by the head of fiscal office competent for matters of taxation of aliens, the personalized information,
referred to in paragraph 2.2.
5. The information, referred to in paragraph 2.1, shall also be prepared and transferred by the entities,
referred to in Article 41, which pay the benefits, referred to in Article 21.1.46.
6. The information, referred to in paragraph 2.2, shall also be prepared and transferred by the entities,
referred to in Article 41, when under an agreement on avoindance of double taxation or the law they
are not obliged to collect the tax, referred to in Articles 29-30a. The provisions of paragraphs 3 and 4
shall apply, as appropriate.
7. The information, referred to in paragraph 2.2, shall not show income (revenues), referred to in
Article 42c.5, for which the information, referred to in Article 42c.1, is prepared.
Art. 42a [Information on revenues] Natural persons conducting commercial activities, legal persons
and their organizational units, as well as organizational entities without legal personality, making
payments of amounts due or benefits, referred to in Article 20.1, with the exception of income
(revenues), referred to in Article 21, Article 52, Article 52a and Article 52c, and income, the tax on
which has been waived pursuant to the provisions of the Taxation Act, on which they are not obliged
to collect withholding income tax or lump income tax, shall be obliged to prepare the information, in
accordance with the specified sample, on the amount of revenues and by the end of February of the
following tax year transfer it to the taxpayer and the fiscal office led by the head of fiscal office
competent for the taxpayer's place of residence, and in cases, referred to in Article 3.2a, to the fiscal
office led by the head of fiscal office competent for matters of taxation of aliens.
Art. 42b (repealed)
Art. 42c [Personalized information Paying agent]
1. By the end of the month following the end of the fiscal year of the entity paying revenues (income),
referred to in referred to in paragraph 5, that entity shall be obliged to send personalized information
on that revenues (income), prepared in accordance with the specified sample, to:
1) the actual or indirect recipient, the revenues (income) are paid or made available to, and who with
respect to the place of residence is subject to taxation with income tax on all of his income:
a) in an European Union Member State other than the Republic of Poland, the Principality of Andorra,
the Principality of Lichtenstein, the Principality of Monaco, the Republic of San Marino and the Swiss
Confederation; or
b) in dependent or overseas territories of the United Kingdom of Great Britain and Northern Ireland
and the Kingdom of the Netherlands, with which the Republic of Poland has signed agreements on
taxation of revenues (income) from savings of natural persons
2) the fiscal office managed by the head of fiscal office competent for matters of taxation of aliens.
2. The paying agent, referred to in paragraph 1, shall be:
1) a natural person, legal person or an organizational entity without legal personality, paying or
making available to the actual or indirect recipient the revenues (income), referred to in paragraph 5,
in connection with conducted commercial activities;
2) the indirect recipient, whose place of residence is located in the territory of the Republic of Poland,
paying or making available to the actual recipient the revenues (income), referred to in paragraph 5.
3. The actual recipient, referred to in paragraph 1.1, shall be a natural person deriving revenues
(income), referred to in paragraph 5.
4. The indirect recipient, referred to in paragraphs 1.1 and 2.2, shall be an entity, the revenues
(income), referred to in paragraph 5, derived by the actual recipient, are paid or made available to,
unless it documents to the paying agent that
1) it is a legal person other than registered or limited partnerships established under the laws of the
Kingdom of Sweden (handelsbolag (HB) and kommanditbolag (KB) and the Republic of Finland
(avoin yhti (Ay) and kommandiittiyhti (Ky)/ppet bolag and kommanditbolag); or
2) its income is subject to corporate income tax; or
3) it is an investment fund; or
4) it is treated as an investment fund under a certificate issued by a competent authority
5. Personalized information, referred to in paragraph 1, shall cover the revenues (income) derived:
1) from interest paid or made available, connected with all types of debts, and in particular on treasury
securities, bonds or notes, including bonuses and rewards connected with such securities, bonds or
notes, with the exception of penalties for default;
2) from interest accrued or capitalized upon selling, returning or writing off the debts, referred to in
subparagraph 1;
3) from interest, directly or through an indirect recipient, paid by:
a) entities, referred to in paragraph 4.3 and 4.4;
b) mutual investment undertakings established outside of the European Union;
4) in connection with selling, returning or retiring stocks, shares, or participation units in:
a) entities, referred to in paragraph 4.3 and 4.4;
b) mutual investment undertakings established outside of the European Union

- if they invested, directly or indirectly through other entities or undertakings, over 40% of their assets
in debts, referred to in subparagraph 1, to the extent in which the revenues (income) corresponds with
profits derived directly or indirectly from income within the meaning of subparagraphs 1 and 2.
6. If the paying agent does not have personalized information concerning:
1) revenues (income) derived from interest, referred to in paragraph 5.3 and 5.4, the entire amount
paid or made available shall be treated as interest income;
2) the share of assets invested in debts, stocks, shares or participation units, referred to in paragraph
5.4, it shall be deemed that the share of assets amounts to over 40%; if the paying agent is unable to
determine the amount of revenues derived by the actual recipient, revenues shall be considered to be
equal to the proceeds from sale, return or retirement of stocks, shares or participation units.
7. As of 1 January 2011, the percentage share, referred to in paragraph 5.4 and paragraph 6.2, shall be
25%.
8. The provisions of Article 42.3 and 42.4 shall apply, as appropriate.
9. The minister competent for public finance, shall specify, by way of an ordinance, a sample of
personalized information on revenues (income), referred to in paragraph 1, together with filling
instructions as to the manner of filling them, the time limit and place of filing, in particular allowing
the paying agent to indicate the actual or indirect recipient, and the amount of revenues (income) paid
or made available.
Art. 42d [Establishment of actual recipient's identity]
1. In order to prepare the personalized information, referred to in Article 42c.1, the paying agent:
1) shall establish the identity of the actual recipient on the basis of an identity document presented by
him;
2) assumes that the state (territory), in which the actual recipient's entire income is taxable is the state
(territory) of the permanent place of residence indicated in the identity document presented, unless the
actual recipient proves that his income is taxable in another state (territory).
2. If the paying agent has reasonable doubts whether the natural person to whom it pays or makes
available revenues (income), referred to in Article 42c.5, is the actual recipient, it shall undertake
measures aimed at establishing the identity of the actual recipient in accordance with paragraph 1. If
the paying agent is unable to establish the identity of the actual recipient, it shall treat that natural
person as the actual recipient.
3. If the revenues (income), referred to in paragraph 42c.5, are paid or made available to a natural
person acting on behalf of the actual or indirect recipient, the paying agent shall be obliged to obtain
from such person the name and surname or the business name and address of the actual or indirect
recipient, as appropriate. If the paying agent is unable to establish the identity of the actual recipient, it
shall treat that natural person as the actual recipient.
4. The minister competent for public finance shall specify, by way of an ordinance, the manner of
determining the identity and place of permanent residence of actual recipients in order to allow paying
agents to establish identities of actual recipients of revenues (incomes), referred to in Article 42c.5.
Art. 42e [Calculation of withholding tax]
1. If the benefits, referred to in Article 12, instead of the paying agent, referred to in Article 31, are
paid by the court bailiff or an entity which is not a legal successor of the paying agent, assuming the
obligations thereof arising from the service relationship, employment relationship, homework
relationship or cooperative employment relationship, they shall be obliged to collect the withholding
income tax at the rate of 19%.
2. The following elements shall be taken into account in the calculation of the withholding tax,
referred to in paragraph 1:
1) deductible costs in the amount described in Article 22.2.1;
2) social security contributions, referred to in Article 2.26.1 letter (b), deducted in a given month in
accordance with separate regulation.
3. The withholding tax, calculated in a manner described in paragraphs 1 and 2, shall be reduced by
the amount:
1) referred to in Article 32.3;
2) health insurance contribution deducted in a given month in accordance with separate regulation,
subject to Article 27b.1.2 and 27b.2.
4. The provisions of Article 38.1, Article 39.1 and 39.2 shall apply, as appropriate.
Art. 43 [Time limits for transferring withholding tax and lump tax]
1. Taxpayers deriving income from special sectors of agricultural production shall be obliged to
submit, by 30-th November of the year preceding the tax year, to the fiscal office declarations, in
accordance with the specified sample, as to the kinds and volume of planned production in the
following year.
2. If income from special sectors of agricultural production is determined on the basis of books,
taxpayers shall also submit to the fiscal office, within the time limit specified in paragraph 1, a
declaration concerning the amount of expected income in the following year.
3. The taxpayers, referred to in paragraph 1, shall be obliged to notify the competent head of fiscal
office, within 7 days, of:
1) any changes that have occurred in the production activities conducted in relation to that given in the
declaration;
2) stopping or starting, in the course of the year, the operation of facilities allowing for year-round
production cycle;
3) starting, in the course of the tax year, the operation of special sectors of agricultural production; in
that case the taxpayers submit the declaration, referred to in paragraph 1, concerning the kinds and
volume of production planned for that year.
4. The taxpayers, referred to in paragraph 1, shall be obliged to pay, in cash or by transfer, to the fiscal
office monthly withholding tax in the amount determined by the decision of the head of that fiscal
office reduced, subject to Article 27b.2, by the amount of the health insurance contribution paid in that
month pursuant to the regulations concerning publicly financed health care benefits, within the time
limits specified in Article 44.6.
5. If the taxpayers, referred to in paragraph 1, derive other income apart from income from special
sectors of agricultural production, they shall pay withholding tax on that income in accordance with
the principles laid down in Article 44, without combining that income with income from special
sectors of agricultural production.
Art. 44 [Tax on income from commercial and equivalent activities]
1. The taxpayers deriving income from:
1) commercial activities, referred to in Article 14;
2) renting or leasing
- shall be obliged to pay, without call, in the course of the year withholding income tax in accordance
with the principles laid down in paragraph 3, subject to paragraph 3f.
1a. The taxpayers deriving income without intermediation of withholding agents:
1) under a foreign employment relationship;
2) from foreign retirement and disability pensions;
3) under the titles, referred to in Article 13.2, 13.4, 13.6 to 13.9, subject to paragraph 1.1
- shall be obliged to pay, without call, in the course of the year withholding income tax in accordance
with the principles laid down in paragraph 3a.
2. Income from commercial activities used as a basis for calculating withholding tax for taxpayers
keeping receipt and expense books shall be the difference between income shown in those books and
deductible costs. If at the end month the taxpayer takes stock of the goods, raw and intermediate
materials or the head of fiscal office orders such stocktaking, income shall be determined in
accordance with the principles laid down in Article 24.2.
3. The taxpayers, referred to in paragraph 1, shall be obliged to pay the withholding tax monthly. The
amount of the withholding tax for the months until November of the tax year, subject to paragraph 3f,
shall be determined as follows:
1) the obligation to pay withholding tax shall arise as of the month in which that income exceeded the
amount causing the obligation to pay tax to arise;
2) the withholding tax for that month shall be the tax calculated in accordance with the principles laid
down in Articles 26, 27 and 27b;
3) the withholding tax for the subsequent months shall be determined at the difference between the tax
due on income generated from the beginning of the year and the sum total of withholding tax for the
preceding months.
3a. The taxpayers, deriving income, referred to in paragraph 1a, shall be obliged to pay monthly
withholding tax in the amount of 19% of income for the month, in which they generated that income,
by the 20-th of the following month for the preceding month, and for December - at the time of filing
the tax return. At the time of payment of withholding tax, the taxpayers shall be obliged to submit to
the fiscal offices led by heads of fiscal offices competent for the taxpayer's place of residence,
declarations in accordance with the specified sample. Income, referred to in the first sentence, shall be
revenues obtained in the month, net of deductible costs in the amount, referred to in Article 22.2 or
22.9, and net of social security contributions, referred to in Article 26.1.2, paid in a given month.
Calculating the withholding tax the taxpayer may use, instead of the 19% rate, as appropriate, the rate
of 30%, 40% or 50%.
3b. (deleted)
3c. The withholding tax, calculated in a manner described in paragraph 3a, shall be reduced, subject to
Article 27b.1.1 and 27b.2, by the amount of the health insurance benefit contribution, paid in that
month pursuant to the regulations concerning publicly financed health care benefits.
3d. The taxpayers, referred to in Article 3.2a, obtaining from abroad income from work performed in
the territory of the Republic of Poland under an employment relationship, shall be obliged to pay
withholding tax in accordance with the principles laid down in paragraph 3a and 3c, upon exceeding
the period, which in accordance with an agreement on avoidance of double taxation constitutes a
requirement for exempting that income from taxation in the territory of the Republic of Poland.; in that
instance, while calculating the first withholding tax, the taxpayer shall be obliged to take into account
income obtained from the beginning of the tax year.
3e. The provisions of paragraphs 1a and 7 shall apply with account being taken of agreements on
avoidance of double taxation, to which the Republic of Poland is a party.
3f. The taxpayers, referred to in paragraph 1.1, taxed in accordance with the principles laid down in
Article 30c, shall be obliged to pay, to the account of the fiscal office led by the competent head of
fiscal office, monthly withholding tax amounting to the difference between the tax due on income
obtained from the beginning of the year, calculated in accordance with Article 30c, and the sum total
of withholding tax due for the preceding months, taking into account Article 27b.
4. Tax on income, referred to in Article 24.3, shall be determined as a lump-sum in the amount of 10%
of that income. The tax shall be payable at the time of payment of the withholding tax for the last
month of conducting the activities. In that case, the taxpayer shall be obliged to attach to the
declaration, referred to in paragraph 6, a list of commercial commodities, basic and auxiliary materials
(raw materials), semi-finished products, final products, rejects and wastes and tangible assets related to
the commercial activities, including works of art, museum exhibits and audio-visual equipment, if the
expenses on their purchasing have been included in deductible costs, other than fixed assets, valuated
at purchasing prices.
5. (repealed)
6. The monthly withholding tax on income, referred to in paragraph 1, for the period from January to
November, shall be paid by the 20-th of each month for the preceding month. The monthly
withholding tax for December, in the amount due for November, shall be paid by the 20-th of
December. At the time of payment of withholding tax for the months from January to November, the
taxpayers shall be obliged to submit to the fiscal offices declarations, in accordance with the specified
sample, concerning the amount of income obtained from the beginning of the year.
6a. (repealed)
6b. The taxpayers, referred to in paragraph 1.1, may, without an obligation to submit monthly
declarations, pay monthly withholding tax in a given tax year in a simplified form at 1/12 of the
amount calculated, subject to paragraphs 6h and 6i, with the application of the tax scale applicable in a
given tax year, described in Article 27.1, on income from non-agricultural commercial activities
shown in the return concerning the amount of derived income (incurred loss), referred to in Article
45.1, or the return concerning the amount of derived income (incurred loss) from non-agricultural
commercial activities taxed in accordance with the principles laid down in Article 30c, referred to in
Article 45.1a.2, filed:
1) in the tax year preceding the given tax year; or
2) in the tax year preceding the given tax year by two years - if in the return, referred to in
subparagraph 1, the taxpayers did not show income from non-agricultural commercial activities or
showed income in the amount of less than PLN 2790; if in that return the taxpayers did not show
income from non-agricultural commercial activities or showed income from that source in the amount
of less than PLN 2790, it shall not be possible to pay withholding tax in the simplified form.
6c. The taxpayers, who have chosen to pay withholding tax in the simplified form, shall be obliged to:
1) by the 20-th of February of the tax year, in which they for the first time chose to pay withholding
tax in the simplified form, notify in writing the competent head of fiscal office of having chosen that
form;
2) pay withholding tax in the simplified form throughout the tax year;
3) pay withholding tax by the time limits specified in paragraph 6;
4) settle the tax for the tax year pursuant to Article 45.
6d. The notification, referred to in paragraph 6c.1, shall apply also to the subsequent years, unless the
taxpayer, by the 20-th of February of the tax year, notifies in writing the competent head of fiscal
office of having waived the simplified form of payment of withholding tax.
6e. The provisions of paragraphs 6b-6d, 6h and 6i shall not apply to taxpayers, who for the first time
started activities in the tax year or in the year preceding the tax year.
6f. If the taxpayer files an adjustment of the return, referred to in Article 45.1 or 45.1a.2, causing a
change in the taxable base for the withholding tax paid in the simplified form, the amount of that
withholding tax:
1) shall be increased or decreased relative to the change in the taxable base for its calculation - if the
adjusting return was filed to the fiscal office by the end of the year preceding the year in which
withholding tax is paid in the simplified form;
2) shall be increased or decreased, beginning with the month following the month in which the
adjustment was filed, relative to the change in the taxable base for its calculation - if the adjusting
return was filed in the year in which withholding tax is paid in the simplified form;
3) shall not be changed - if the adjusting return was filed later than the time limit, referred to in
subparagraphs 1 and 2.
6g. Should the competent tax authority or competent fiscal control authority determine another amount
of income from non-agricultural commercial activities than the amount of that income shown in the
return, referred to in Article 45.1 or 45.1a.2, or in the adjusting return, the provisions of paragraph 6f
shall apply, as appropriate.
6h. The taxpayers taxed in the given tax year in accordance with the principles laid down in Article
30c, who have chosen to pay withholding tax in the simplified form, shall calculate withholding tax,
subject to paragraph 6i, on income, referred to in paragraph 6b, with the application of the 19% tax
rate.
6i. The payable amount of the withholding tax, calculated in a manner described in paragraph 6b or
6h, shall be reduced, subject to Article 27b.1.1 and 27b.2, by the amount of the health insurance
benefit contribution, paid in that month pursuant to the regulations concerning publicly financed health
care benefits.
7. The taxpayers, referred to in Article 3.1, temporarily staying abroad, obtaining from abroad income
from sources located outside of the territory of the Republic of Poland, shall be obliged to pay
withholding tax in the amount of 19% of that income, by the 20-th day of the month following the
month in which they returned to the country.
7a. The taxpayers, who for the first time started non-agricultural commercial activities, shall be
exempt, on conditions laid down in paragraph 7c, from the obligations arising from paragraph 6, with
respect to those activities, in the tax year:
1) directly following the year, in which they started those activities, if in the starting year those
activities were conducted for at least 10 full months; or
2) two years after the year, in which they started those activities, if the requirement, referred to in
subparagraph 1, has not been met.
7b. The taxpayer for the first time starting non-agricultural commercial activities shall be the person,
who in the year of starting those activities, and also within three year from the end of the year
preceding the starting year, was not involved in non-agricultural commercial activities independently
or as a partner of an unincorporated partnership, and such activities have not been conducted by that
person's spouse, if during that time the spouses shared joint marital property.
7c. The exemption, referred to in paragraph 7a, shall apply to the taxpayers, who meet all of the
following requirements:
1) in the year preceding the year of utilizing this exemption they derived monthly average revenues
from non-agricultural commercial activities in the amount of PLN equivalent of at least EUR 1000,
converted at the average rate of exchange as announced by the National Bank of Poland, effective as at
the last day of the year preceding the starting year;
2) from the time of starting non-agricultural commercial activities to 1 January of the tax year, in
which they start utilizing the exemption, they operated as a small business, within the meaning of
regulations concerning commercial activities, and in the period preceding the year in which they
utilized the exemption they each month employed full-time at least 5 persons under employment
contracts;
3) in non-agricultural commercial activities they do not utilize fixed assets and intangible assets, as
well as other assets, referred to in Article 24.3 - of significant value - made available to them
gratuitously by persons included in the 1st and 2nd tax category within the meaning of the regulations
concerning tax on inheritance and donations, utilized previously in commercial activities conducted by
those persons and owned by them;
4) have filed with the competent head of fiscal office a declaration concerning the use of this
exemption; the declaration shall be filed in writing by 31 January of the tax year, in which the
taxpayer will utilize that exemption;
5) in the year in which the utilize the exemption they are taxed in accordance with the principles laid
down in Article 27.1
7d. Substantial value shall mean the aggregate value of fixed assets and intangible assets, as well as
other assets, referred to in Article 24.3 - mentioned in paragraph 7c.3 amounting to at least the PLN
equivalent of EUR 10 000, converted at the average rate of exchange as announced by the National
Bank of Poland, effective as at the last day of the year preceding the year in which the exemption is
utilized. In determining that value Article 19 shall apply, as appropriate.
7e. The taxpayers utilizing the exemption, referred to in paragraph 7a, shall show income obtained
(loss incurred) from non-agricultural commercial activities in the return concerning income obtained
(loss incurred) filed for the tax year. That income shall not be combined with income from other
sources. Loss shall be accounted for in accordance with Article 9.
7f. Income from non-agricultural commercial activities, referred in paragraph 7e, shall be combined
with income (loss) from that source, shown in the returns concerning income obtained (loss incurred)
filed for five consecutive years directly following the year, in which the taxpayer utilized the
exemption - in the amount of 20% of that income in each of those years. This provision shall apply, as
appropriate, also to taxpayers, who in the years following the year in which they utilized the
exemption chose the manner of taxation in accordance with the principles laid down in Article 30c.
7g. The taxpayers shall lose the right to the exemption, if in the year or for the year of utilizing the
exemption, or in five following tax years:
1) wound up commercial activities or their bankruptcy was declared, involving liquidation of assets or
bankruptcy involving liquidation of assets of a partnership they are partners of; or
2) they derived monthly average revenues from non-agricultural commercial activities in the amount
of PLN equivalent of at least EUR 1000, converted at the average rate of exchange as announced by
the National Bank of Poland, effective as at the last day of the previous year;
3) in any of the months in those years reduce monthly average number of people employed under
employment contract by more than 10% in relation to to the highest monthly average number of
people employed in the year preceding the tax year; or
4) are in the arrears with respect of taxes constituting revenues of the state budget, customs duties, and
social security and health insurance contributions, referred to in the Act of 27 August 2004 on Publicly
Financed Health Benefits (Dz.U. No. 210, item 2135); determination or assessment in a different form
- as a result of the proceedings carried out by the competent authority - of the arrears with respect to
the above-mentioned titled shall not deprive the taxpayer of the right to utilize the exemption, if those
arrears together with interest for default are paid within 14 days from the date of delivery of the final
decision.
7h. The monthly average number of people employed, referred to in paragraph 7c.2 and 7g.3, shall be
determined with respect to full-time jobs, leaving out the decimals; if the monthly average number of
persons employed is less than one, number of one is adopted.
7i. The taxpayers, who lost their right to the exemption:
1) in the tax year, in which they utilize that exemption - shall be obliged to file a declaration
concerning income obtained from the beginning of the year and to pay withholding tax due by the 20-
th day of the month following the month in which they lost the right to the exemption; in that case no
interest for default on arrears with respect to withholding tax shall be accrued;
2) in the period between 1 January of the following year and the time limit for filing the declaration
concerning income obtained (loss incurred) for the tax year in which they utilized the exemption -
shall be obliged to file a return on the amount of income obtained (loss incurred) in the tax year in
which they utilized the exemption and to pay the tax in accordance with the principles laid down in
Article 45; in that case no interest for default on arrears with respect to withholding tax for the
individual months of the year, in which the taxpayers utilized the exemption, shall be accrued;
3) in the period between the time limit set for filing the return on income obtained (loss incurred) for
the tax year in which they utilized the exemption and the time limit set for filing the return on income
obtained (loss incurred) for the first tax year following the year in which they utilized the exemption -
shall be obliged to file an adjustment to the return, referred to in subparagraph 2, and to pay the tax
together with interest for default; interest shall be accrued as of the date following the time limit for
filing the return on income obtained (loss incurred) for the tax year in which they were obliged to file
that return;
4) in the period between the time limit set for filing the return on income obtained (loss incurred) for
the first tax year following the year in which they utilized the exemption until the end of the fifth tax
year following the year in which they utilized the exemption - shall be obliged to:
a) file an adjustment of the return, referred to in subparagraph 2, and to pay the tax plus interest for
default; interest shall be accrued as of the date following the time limit for filing the return on income
obtained (loss incurred) for the tax year in which they were obliged to file that return;
b) file adjustments to the returns on income obtained (loss incurred), in each of which they added 20%
of income, referred to in paragraph 7e, filed for subsequent tax years following the year in which they
utilized the exemption.
7j. The provision of paragraph 7i shall apply, as appropriate, also to taxpayers, who chose the manner
of taxation in accordance with the principles laid down in Article 30c.
8. (repealed)
9. (deleted)
Art. 44a (deleted)
Art. 44b (deleted)

Chapter 8. Tax Returns.

Art. 45 [Time limit Attachments; Tax due]

1. Taxpayers shall be obliged to file to fiscal offices returns, in accordance with the specified sample,
on income obtained (loss incurred) in the tax year by 30 April of the year following the tax year,
subject to paragraph 7 and 8.
1a. Within the time limits specified in paragraph 1, taxpayers shall be obliged to file to fiscal offices
separate returns, in accordance with the specified samples, on income obtained (loss incurred) from:
1) capital taxed in accordance with the principles laid down in Article 30b;
2) non-agricultural commercial activities taxed in accordance with the principles laid down in Article
30c.
1b. The fiscal office, referred to in paragraph 1 and 1a, shall be the fiscal office competent for the
place of residence of the taxpayer as on the last day of the tax year, and when residence in the territory
of the Republic of Poland ceased prior to that date - for the last place of residence in its territory,
subject to paragraph 7.
2. The obligation to file a return shall not apply to the taxpayers, referred to in Article 37.
3. The returns, referred to in paragraphs 1 and 1a.2, shall not include income:
1) taxed in accordance with Articles 28-30 and 30a.
2) described in Article 24.3, with the exception of income from liquidation of commercial activities
carried out in December of the tax year.
3a. In case of receiving a refund of previously:
1) paid and deducted health insurance contributions;
2) deducted donation, referred to in Article 26.1.9;
3) deducted payment, referred to in Article 27d
- the taxpayer shall be obliged to add the previously deducted amounts to income or tax, calculated in
accordance with Article 27 or Article 30c, in the tax return, referred to in paragraph 1 or 1a.2.
3b. The return, referred to in paragraph 1 or 1a.2, shall show lump income tax, referred to in Article
29, 30 and 30a, if that tax has not been collected by the withholding agent.
4. The taxpayers shall be obliged to pay, by the time limit described in paragraph 1, subject to
paragraph 7:
1) the difference between the tax due on income shown in the return, referred to in paragraph 1, and
the sum total of withholding tax due for a given year, including the sum total of withholding tax
collected by withholding agents;
2) income tax due as shown in the return, referred to in paragraph 1a.1;
3) income tax due as shown in the return, referred to in paragraph 1a.2, or the difference between the
tax due as shown in the return, referred to in paragraph 1a.2, and the sum total of withholding tax due
for a given year.
5. The taxpayers who keep account books (commercial books) shall attach financial statements to the
return.
6. Income tax as shown in the return shall be the tax due on taxpayer's income obtained during the tax
year, unless the competent tax authority or the competent fiscal control authority issues a decision
assessing another amount of the tax. If the return concerning the amount of income obtained is not
filed, the competent tax authority or the competent fiscal control authority shall issue a decision
assessing the amount of the income tax due.
7. The taxpayers, referred to in Article 3.2a, deriving income from the revenue sources located in the
territory of the Republic of Poland without intermediation of withholding agents or through
withholding agents who are not obliged to make an annual tax assessment, or derived income, referred
to in Article 30b, and intend to leave the territory of the Republic of Poland before the time limit,
referred to in paragraph 1, shall shall be obliged to file the returns, referred to in paragraph 1 and 1a,
for the tax year to the fiscal office competent for matter of taxation of aliens prior to leaving the
territory of the Republic of Poland.
8. The taxpayers, referred to in Article 44.3d, shall be obliged, within three months of exceeding the
period, which in accordance with an agreement on avoidance of double taxation constitutes a
requirement for exempting income from taxation, to file a return on the amount of income from work
obtained in the year preceding the tax year and pay the tax due. If they intend to leave the territory of
the Republic of Poland before the time limit, referred to in the first sentence, they shall be obliged to
file the tax return prior to leaving the territory of the Republic of Poland.
Art. 45a [Delegacy] The Chairman of the Council of Ministers shall specify, with respect to protection
of state secrecy, by way of an ordinance, a separate income tax collection procedure, procedure for
filing tax information and returns, as well as additional duties of withholding agents connected with
the obligation to prepare annual tax assessments, taking into account any additional income, expenses,
reliefs, exemptions and exclusions affecting the taxable base and the amount of taxpayer's tax, other
than those referred to in Articles 6, 37, 38, 41, 42 and 45, at the same time specifying the additional
scope of duties of the withholding agent, in particular carrying out the proceedings and issuing
decisions in tax matters the tax authorities are competent for.
Art. 45b [Delegacy] The minister competent for public finance shall specify, by way of an ordinance,
samples of:
1) declarations and information, referred to in Article 28.4, Article 35.10, Article 38.1, Article 39.1
and 39. 3, Article 42.1 and 42.2, Article 42a, Article 43.1 and Article 44.3a and 44.6;
2) the annual tax assessment, referred to in Article 37.1;
3) the annual tax assessment together with information, referred to in Article 34.7 and 37.8;
4) tax returns, referred to in Article 45.1 and 45.1a
5) declarations, referred to in Article 21.10, Article 32.3, Article 34.4, Article 35.4 and Article 37.1
- together with instructions as to their filling, time limit and place of filing; the ordinance shall be
aimed at identifying the taxpayer, the withholding agent and the fiscal office, to which the form is
addressed, and the correct assessment by the withholding agent or the taxpayer of the tax and
withholding tax.

Chapter 9. Amendments of applicable laws.

Art. 46 (omitted)
Art. 47 (omitted)
Art. 48 (omitted)
Art. 49 (omitted)
Art. 50 (omitted)
Art. 51 (omitted)

Chapter 10. Transitional and final provisions.

Art. 52 [Temporary exemptions] The following items shall be free from income tax:
1) from 1 January 2001 until 31 December 2003 income from:
a) selling of bonds issued by the State Treasury after 1 January 1989 and bonds issued by local
government units after 1 January 1997, purchased before 1 January 2003;
b) selling of securities admitted for public trading in securities, purchased under a public offering or at
the stock exchange, or in regulated OTC secondary public trading, or under a permit granted pursuant
to Article 92 or 93 of the Act of 21 August 1997 on Public Trading in Securities (Dz.U. No. 118, item
754 and No. 141, item 945, of 1998 No. 107, item 669 and No. 113, item 715 and of 2000 No. 22,
item 270, No. 60, item 702 and 703, No. 94, item 1037 and No. 103, item 1099);
c) (deleted)

- with the proviso that this exemption shall not apply, if selling of those securities is an object of
commercial activities;

d) derived from exercising the rights under securities, referred to in Article 3.3 of the Act of 21 August
1997 on Public Trading in Securities (Dz.U. No. 118, item 754 and No. 141, item 945, of 1998 No.
107, item 669 and No. 113, item 715 and of 2000 No. 22, item 270, No. 60, item 702 and 703, No. 94,
item 1037 and No. 103, item 1099);
2) paid after 31 December 1991 and due for the period up to 31 December 1991:
a) revenues under the service-based relationship, employment relationship, cooperative employment
relationship and homework contracts;
b) commissions, bonuses, rewards from profit (income) and rewards from the company reward fund
due under the titles, referred to in letter a),

- if those revenues were in 1991 exempt from wage tax under wage regulations;

3) retirement and disability gratuities, rewards for service and other one-off payments, to which the
employee became entitled in 1992 and which are assessed on the basis of remuneration set in
accordance with the rates or amounts applicable until 31 December 1991, if those revenues were in
1991 exempt from wage tax under wage regulations;
4) domestic retirement and disability pensions as well as other social security benefits due for the time
until 31 December 1991;
5) (deleted)
Art. 52a [Exemption from tax]
1. The following items shall be free from income tax:
1) interest and discounted interest income with respect to securities issued by the State Treasury and
bonds issued by local government units - purchased by the taxpayer before 1 January 2001;
2) income (revenues), referred to in Article 30a.1.3, if paid or made available to the taxpayer on funds
accumulated by the taxpayer before 1 December 2001, under contracts concluded for a definite period
of time before that date;
3) income with respect of participation in capital funds, referred to in Article 30a.1.5, if paid to the
taxpayer under contracts concluded or subscriptions made by the taxpayer before 1 December 2001;
this exemption shall not apply to income obtained in connection with the taxpayer's joining the unit-
linked savings plan, regardless of the plan's form - with respect to income on payments (contributions)
to the fund made as of 1 December 2001, subject to Article 21.1.58 and 21.1.59;
4) (repealed)
5) interest and guarantee premiums on deposits in housing savings books.
2. The exemption, referred to in paragraph 1.2, shall not apply to income (revenues) on funds
accumulated by the taxpayer before 1 December 2001, under contracts concluded for a definite period
of time before that date - paid or made available under those contracts amended, extended or renewed
as of 1 December 2001.
3. If income (revenues) are paid under contract concluded from 1 December 2001 until 28 February
2002, the tax, referred to in Article 30a.1.3, shall be assessed in the amount prorated for the period, in
which the taxpayer is not entitled to the exemption under paragraph 1.2.
4. The provision of paragraph 3 shall be applied, as appropriate, to interest and discounted interest on
bonds, referred to in paragraph 1.1.
5. The exemption, referred to in paragraph 1.2, shall not apply also to income (revenues) on funds
accumulated by the taxpayer before 1 December 2001, under contracts concluded for a definite period
of time before that date, if such contract:
1) was terminated before the period for which it had been concluded expired, regardless of the cause
of that termination;
2) provides for a possibility of paying out all or part of the capital, including capitalized interest,
accumulated by the taxpayer in the duration of the contract, and the taxpayer utilized this opportunity.
6. In the event, referred to in paragraph 5, the entity authorized under separate regulations to keep the
taxpayer's account or to accumulate the taxpayer's funds in other forms of saving, safekeeping or
investing shall collect the tax, referred to in Article and 30a.1.3, as at the date of termination of the
contract or paying out all or part of the capital, referred to in paragraph 5.2. The provisions of
paragraph 3 and Article 42 shall apply, as appropriate, with the proviso that the tax is collected on the
sum total of income (revenues) obtained as of 1 March 2002.
7. The provision of paragraph 5.1 shall not apply, if the contract was terminated from causes beyond
the taxpayer's control, in particular in connection with liquidation or bankruptcy of a bank or
occurrence of fortuitous events.
Art. 52b (deleted)
Art. 52c [Exemption for soldiers]
1. Financial allowances paid to soldiers for covering the costs of renting residential premises, in the
amount of not more than PLN 500 per month, referred to in Article 17 of the Act of 16 April 2004 on
amendments to the Act on Quarters for the Armed Forces of the Republic of Poland and certain other
acts of law (Dz.U. No. 116, item 1203), shall be free from income tax.
2. The equivalent for resignation from separate permanent quarters, the amounts paid to persons,
referred to in Article 19.3 and Article 22.2 of the Act of 16 April 2004 on amendments to the Act on
Quarters for the Armed Forces of the Republic of Poland and certain other acts of law, shall be free
from income tax.
Art. 53
1. (deleted)
2. (deleted)
Art. 54 [Derogation]
1. As of 1 January 1992 the following regulations shall go out of force:
1) the Act of 4 February 1949 on Wage Tax (Dz.U. No. 7, item 41, of 1956 No. 44, item 201, of 1959
No. 11, item 69 and of 1963 No. 57, item 309);
2) the Act of 26 February 1982 on Taxation of Socialized Economy Units (Dz.U. of 1987 No. 12, item
77, of 1989 No. 3, item 12, No. 35, item 192 and No. 74, item 443, of 1990 No. 21, item 126 and of
1991 No. 9, item 30) - its portion concerning wage tax;
3) the Act of 28 July 1983 on Equalization Tax (Dz.U. No. 42, item 188, of 1984 No. 52, item 268, of
1988 No. 34, item 254, of 1989 No. 35, item 192 and of 1991 No. 78, item 345);
4) the Act of 16 December 1972 on Income Tax (Dz.U. of 1989 No. 27, item 147, No. 74, item 443
and of 1991 No. 9, item 30, No. 35, item 155 and No. 60, item 253);
5) the Act of 15 November 1984 on Agricultural Tax (Dz.U. No. 52, item 268, of 1986 No. 46, item
225, of 1988 No. 1, item 1, of 1989 No. 7, item 45, No. 10, item 53, No. 35, item 192 and No. 74, item
443, of 1990 No. 34, item 198 and of 1991 No. 7, item 24) - to the extent concerning agricultural tax
on income of natural persons from special sectors of agricultural production;
6) Article 27 of the Act of 14 June 1991 on Companies with Foreign Participation (Dz.U. No. 60, item
253);
7) the provisions of special acts, in their portions relating to all types of exemptions of natural persons
from taxes, referred to in subparagraphs 1-5, or reduction of those taxes.
2. The provisions:
1) of the acts, referred to in paragraph 1.1 and 1.3 to 1.7, shall apply to taxation of income derived
until 31 December 1991;
2) of the act, referred to in paragraph 1.2, shall apply to taxation of wage charged to operating costs of
economic entities until 31 December 1991.
3. Housing and investment tax credits granted under the act, referred to in paragraph 1.3, and
investment tax credits granted under the act, referred to in paragraph 1.4 and 1.5, not fully utilized by
1 January 1992, shall apply, as appropriate, to income and income tax collected under this Act.
4. (deleted)
5. Temporary exemptions from income tax pursuant to Article 10 and Article 22.1 of the act, referred
to in paragraph 1.4, shall remain in force until they expire.
6. With respect to the taxpayers, who under the act, referred to in paragraph 1.3, accumulated funds in
a special bank account, the amounts withdrawn from that account after 1 January 1992 shall be treated
as taxable income within the meaning of this Act, with the proviso that in 1992 such amounts shall be
exempted from income tax up the ceiling of the first bracket of the scale described in Article 27.1. In
that case, if the taxpayer derives also other income, with the exception of income, referred to in
Articles 28, 30 and Article 41.3, in order to determine the tax liability and the amount of the tax due
on that income, it shall be combined with the amount withdrawn from the special bank account.
Art. 55 [Principles for raising remuneration]
1. Employers shall raise employees' remuneration due for January 1992, recalculating it in such a way
so that after income tax is collected on that remuneration it is not lower than the remuneration for that
month before recalculation, subject to paragraphs 2-5. If remuneration due for January 1992 has been
paid before 1 January 1992, the employer shall raise the remuneration due for February 1992.
2. The remuneration, referred to in paragraph 1, shall be all cash pays due under a service relationship,
employment relationship, cooperative employment relationship and homework contract and monetary
value of non-cash performances or their equivalents, under remuneration regulations applicable to the
employer.
3. After recalculation, referred to in paragraph 1, an employer's remuneration may not be higher than
125% of the remuneration before recalculation.
4. Components of remuneration payable for period longer than one month, to which an employee
became entitled after 31 December 1991, with the exception of those, referred to in paragraph 5, shall
be added to the remuneration, referred to in paragraph 1, before its recalculation, in the amount as last
paid and calculated for a period of one month.
5. The following shall not be taken into account in the recalculation of the remunerations, referred to
in paragraph 1:
1) retirement and disability gratuities, rewards for service and other one-off payments of remuneration
and work related benefits;
2) rewards;
3) remuneration free from income tax;
4) remuneration components the amounts of which are determined in relation to the lowest
remuneration set including income tax;
5) remuneration received by an employee from another employer and income under other titles.
6. Social security bodies shall raise domestic retirement and disability pensions due as of 1 January
1992, recalculating them in such a way so that after income tax is collected on those retirement and
disability pensions they are not lower than before recalculation, and also the coefficients between
benefits and remuneration are not lowered. The provision of paragraph 3 shall apply, as appropriate.
7. (omitted)
8. Wherever in the social security regulations there is a mention of remuneration, pay, revenues,
income, contribution assessment basis, average wage, projected average wage - it shall mean after 31
December 1991 the amount including income tax, subject to paragraphs 9 and 10.
9. The rate for the first indexation of retirement and disability pensions in 1992 shall be determined by
dividing the amount of the average wage projected for a given quarter, without taking into account
remuneration raises as a result of introduction of income tax, by the amount of the projected average
wage used as a basis for the last indexation. The amount of the average wage projected for a given
quarter, without taking into account remuneration raises as a result of introduction of income tax, shall
be announced by the President of the Central Statistical Office (GUS) in accordance with the
procedure specified in a separate act on pensions for employees and their families.
10. Determining the amount of benefits, which were applied for within the quarter, in which the
indexation rate is to be determined in accordance with paragraph 9, the basis for the assessment of
those benefits shall be the amount of the projected average wage in the quarter, in which previous
indexation was carried out, multiplied by the wage index.
11. Determining the amount of benefits, which were applied for beginning with the quarter following
the quarter, in which the indexation rate was determined in accordance with paragraph 9, the basis for
the assessment of those benefits shall be the amount of the projected average wage in the preceding
quarter, within the meaning of paragraph 8, multiplied by the wage index.
12. The Minister of Labour and Social Policy, in conjunction with the Minister of Finance, shall
specify the method for recalculation of remunerations, referred to in paragraphs 1-5, as well as
retirement and disability pensions, referred to in paragraph 6, and social security allowances.
Art. 56 [New amount of benefits]
1. In connection with introduction of income tax the amount of benefits (allowances), which were
determined in relation to the amount of the lowest retirement pension or average wage, shall be
restated. The new amount of those benefits may not be lower than the amounts of those benefits
(allowances) due as at 31 December 1991.
2. The Council of Ministers, by way of an ordinance, shall specify the amount of benefits
(allowances), referred to in paragraph 1, in relation to the average wage including income tax.
Art. 57 [Agency and equivalent contracts Revenues; Withholding tax]
1. Until expiration of the legal consequences of agency and mandate contracts, concluded pursuant to
separate regulations, a source of income, within the meaning of Article 10, shall also be activities
performed under those contracts.
2. Revenues from the activities, referred to in paragraph 1, shall be determined in accordance with the
principles laid down in Article 14. While determining income, amounts due to the mandatory under
the mandate contracts shall be treated as deductible costs, if it refers to a given tax year, even though
they have not been paid yet.
3. The taxpayers, who derive income, referred to in paragraph 1, shall be obliged to pay monthly
withholding tax in accordance and file annual returns in accordance with the principles laid down in
Article 44 and 45.
Art. 58 [Coming into force] This Act shall come into force as of 1 January 1992, with the exception of
Article 46, 47, 50 and 51, which shall come into force upon announcement effective as of 1 July 1991.