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Post by account_disabled on Nov 22, 2023 3:53:47 GMT
In certain countries abroad. What is it and who can deduct the abolition relief in the annual PIT settlement? What is abolition relief? When settling foreign income in Poland, depending on the country in which we obtained the income, tax should be calculated taking into account one of two methods exclusions with progression or proportional deduction. The exclusion with progression method means that foreign income is exempt from tax in Poland, but it must be taken into account when calculating Polish tax for this purpose. The tax rate calculated for the entire income, i.e. Polish and foreign income, should be used. It is used to settle income, among others from Germany, France, Czech Republic. The proportional deduction method means that foreign income is subject to Polish tax foreign philippines photo editor income is added to Polish income and the tax is calculated from their sum, which must be paid to the Polish tax office. However, an abolition relief can be deducted from the tax calculated in this way. This method is used for, the Netherlands, Belgium, Russia and England. Which method should be used to settle income from a given country in Poland can be found in the double taxation avoidance agreement UPO that Poland signed with a given country. If Poland does not have a signed UPO agreement with any country, then the proportional deduction method should be used. The two methods mentioned above differ in the way of calculating Polish tax. For the same income, the tax calculated using the proportional deduction method is higher than the tax calculated using.
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