Not doubting what you say but if you are living in Poland receiving a foreign pension, how can you be taxed twice
Because when you live in Poland more than 183 days in a year you have to declare your worldwide income. It is a law. Not only in Poland. Most countries do that.
Not doubting what you say but if you are living in Poland receiving a foreign pension, how can you be taxed twice..
It is not taxed twice. You can get tax credit in foreign country, but you have to pay tax in Poland.
If there is no tax in foreign country it doesn't mean that there in no tax in Poland.
secondly how would ZUS know you are in receipt of a foreign pension?
Not ZUS. Tax is paid to US (Urzad Skarbowy)
Answer no 1. Because law says that you have to declare it.
Answer no 2. When you buy car, apartment, house first question from US will be how you could buy car if you did not declare any income. Tax for undeclared income is 75%.
They can go 5 years back, which gives you 5 x 75% plus interest (about 12% a year)
My understanding is that foreign pensions are tax free in Poland.
it is not tax free. It is not my first year when I help fill out tax return.
Details depends on agreement between Poland and foreign country.
Agreement between Poland and Canada says that it is not tax free.
Agreement between Poland and Canada says that it is not tax free.
as continuation.
I found one exception to that but i have to consult that to be sure that nothing has changed in law recently
That exception says that pension paid by one country based on "retirement system law" are tax free in the other country as long as it is tax free in that first country.
It means that if pension is not taxable in Canada it should also be not taxable in Poland.
There are same restrictions which describe what institution must pay pension to be tax free in Poland.
I don't know Canada's law. I must ask somebody who knows something more.
Moses777. If you are still here. Could you write something more about that.
What kind on pensions are in Canada. Are some of them taxed and some of them not.
Can you have pension from more than one source. Is it government institution or private.