Some advice needed on NOT having my personal tax allowance deferred to next year

I just found out that under Polish law, as I am a contract worker and don't have residency status, that my personal tax allowance is 'put by' and can only be claimed at the end of the financial year (next February).

As it stands I'm being deducted about 40% of my gross, whereas if I had the allowance then it would be about 23%, which is a lot more palatable.

I've been told that if I have residency status then I will be taxed 'normally' and so the allowance will be calculated into my salary each month.

I'd really rather have it in hand then, but apparently it takes 3 months to get residency status. Is that true, or can I apply for and get a residency card/paper/number sooner than that?

Thanks for any info and advice,

Matt

What?

Who is telling you this nonsense?


Garbage. In fact - it suggests that someone is stealing from you.

If you have a NIP number, you have the allowance - end of story, unless you've submitted some sort of paperwork to take advantage of complicated taxation agreements of which ordinary mortals like you and me have no knowledge of.


More garbage. It certainly seems as if you've been screwed over by someone.

Hang on - 23%? 40%? These aren't Polish tax rates...

Hiya, yes sounds crazy, no doubt I haven't explained it too well either.

Those percentages aren't the basic rate of tax I'm paying, they reflect the total amount of deductions including the health insurance, pension etc.

(I can't get my head around a 9.75% compulsory state pension pay-in either but that's another story).

As I understand it, I get my gross. Then the 9.75% is deducted for the pension, then another 1.5% for something else, and then there is the optional sick day deduction of 2.5%.

After that, I should then have my personal allowance deducted, and the income tax is calculated on the balance, with the personal allowance added back on at the end, and I think the personal allowance rather than being a fixed figure is calculated at 20%.

Is this right so far?

So what's happening is that I am not being given that 20% deduction, the income tax is just being calculated on the gross (not even the gross minus the pension and insurance contributions!).

I have been told that if I want the personal allowance then I have to have residency, whether that means a NIP number or Pesel number I don't know.

Otherwise I will get the money back in Feb.
This is a large corporation operating in many different countries, so I wouldn't expect them to screw us deliberately, but I don't know the law.

No, not true. The personal allowance is a mere 3,091zl a year - along with some allowances if you're married, have children, etc.


This is lies - for a start, the tax office won't return any money until after the deadline for submitting the personal tax return (deadline - usually end of April, give or take a couple of days).

infor.pl/kalkulatory/brutto_netto.html

Go here and see what comes out - then compare it to your own situation. The personal allowance will only come into play at the end of the year - as "income tax" is actually just an advance on your final tax bill rather than being an actual tax payment.

It seems to me that you've been told a load of rubbish by someone - you won't get a 23% tax burden in Poland - it'll either be 9.5%, 18%, 38% or 52%.

Do you know if you have "umowa o prace", "umowa zlecenia" or "umowa o dzielo"?

Do you really need residency status? in Europe if you stay or work less than 6 months in a country you may still be under your permanent residency fiscal status. Right or Wrong?

Hi, yes the purchase order that is issued has 'umowa zlecenia' written across the top, does this give more clues?

I've attached a sample of the xls sheet we are given to fill out, I've put 1000zl in so you can see what the numbers generated are more clearly.

Thanks again for any help,

Matt

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