I am a foreigner who works at a Polish company and I was considering doing freelance work for a company based outside of Poland but in the European Union. Still, I am unsure if I need a tax identity as a corporate and how much would be deducted by taxes.
Can you help me with what steps I need to take and how much taxes would be deducted?
Yes, basically you would need to set up a Dzialanosc Gospodarstwo (not possible for some nationalities), or a limited company. You might need to check your visa allows that too. Then you will need to pay tax on those earnings. I can't tell you how much because it depends on if you are married, have kids, what costs you would have for your business etc
Of course you could just set up the entity in your home country and have any cash from your freelance work sent to a bank in your home country. You should really pay tax in that in Poland but they are unlikely to notice.
No, I am not. But you're right, I will see if I can set it up in my country. Also, I was trying to reach some accountants if I got some consultancy I will see what he says, but so far setting up in my country might be better, thank you for your advice.
"Living and being employed in Poland by polish employer and doing additional Freelance work."
I am not an expert as well and trying to find a good way. But I think the following options are possible.
Option A: Run an unregistered company (działalność nierejestrową), if the monthly income is below 50% of the official minimal income 1800PLN ( biznes.gov.pl/pl/portal/00115 )
Option B: 1. Set up a a business ( aplikacja.ceidg.gov.pl/CEIDG/Index.aspx ) 2. Register your business with PZU ZZA 3. Your business needs to pay monthly for health insurance. PZU DRA The minimum contribution is 376,16 PLN per month, but can be more if your Freelance income is above minimum wage.
4. Your business does not need to pay for social security contributions, while being employed with a salary above the minimum income (3600 PLN) ( biznes.gov.pl/pl/portal/001785 )
How is you progress? Did you do one of the mentioned options?
I have open questions like: Can I "pause" my business activity for a month and not paying health insurance? What other taxes I would need to pay in Option B?
@GeraldHa Option B: 5. You should pay the income tax. 6. You or your landlord also have to pay higher tax rates PLN 28.78 per m2 instead of PLN 1.16 per m2 for the property you have your business located. ( orbitax.com/news/archive.php/Poland-Sets-Maximum-Property-T-51728 )
