PIT- 2 in 2023 – Key changes.

PIT- 2 returns in 2023 in a new, expanded version. Filing this form may also affect your net pay in 2023. Starting January 1, 2023. The PIT-2 will apply to all information affecting how advance income tax payments are determined.

The new PIT-2 form will apply to income earned from January 1, 2023. The new print was created due to the changes introduced by the Polish Order 2.0. The full name of the PIT-2 print is: Taxpayer’s statements/applications for the purpose of calculating monthly advances for personal income tax. As the name suggests, this form combines several applications/statements that were previously filed separately.

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What can be done with the PIT-2?

  • make a statement on the deduction of the tax-reducing amount
  • file a statement on the intention to preferentially tax income with a spouse or as a single parent,
  • file a statement on the use of increased employee deductible expenses
  • file a statement on exemptions such as relief for 4+ families, return relief, relief for working seniors
  • file an application for not using the youth relief or employee deductible expenses
  • file an application for not collecting advance payments in the tax year

The PIT-2 form does not need to be filed annually. This is because once filed, the statement remains valid. The statement must be filed again when there have been changes from the earlier statement. It should be noted that PIT-2 forms filed so far will remain valid, as they are binding until revoked.

Currently, the tax-reducing amount that can be deducted from tax is PLN 3,600 (12% of the free amount of 30,000). Thus, a monthly amount of PLN 300 can be deducted. The taxpayer in the statement will have the right to authorize up to 3 payers (including principals, pension bodies) to apply the deduction, while indicating the amount to be deducted. If one payer will be authorized to deduct it – the full amount will be deducted (PLN 300 per month, or 1/12 of the tax-reducing amount). With two authorized payers – each of them will apply a deduction of 150 PLN per month (that is, 1/24 of the tax-reducing amount), while with three – 100 PLN per month (1/36 of the tax-reducing amount).

An important change is the expansion of the catalog of entities authorized to file PIT-2. This will include not only taxpayers employed under an employment contract, but also taxpayers who are members of the management board, taxpayers bound to the payer by a contract for specific work, a contract of mandate or a managerial contract.

With regard to the already mentioned assignment contracts, contractors fill out the entire PIT-2 form.

How to fill out the PIT-2?

Part A: In this part, the taxpayer indicates the name, first name and date of birth

Part B: In Part B, the taxpayer indicates the name of the company in which he is employed or with which he is associated under a contract of mandate or contract for work. If the taxpayer receives remuneration from an individual, the taxpayer shall indicate the first and last name of the individual in field B.5.

Part C: Statement on the deduction of the tax-reducing amount. From now on, if an employee has three employers, he can authorize each of them to apply the monthly tax reducing amount.  The taxpayer has the option to reduce income tax. He has 300 zloty for this purpose. He can apply to the payer (employer) to reduce the tax by 300 PLN, if he has two employers, the amount of 300 PLN can be distributed between 2 employers (i.e. 150 PLN each) or between 3 employers (i.e. 100 PLN each).

Part D: Statement on the application of the amount reducing the monthly tax advances submitted to the agricultural production cooperative and other cooperatives engaged in agricultural production, and to the enforcement authority paying for the establishment under the employment relationship and related relationships, or to an entity that is not the legal successor of the establishment, taking over the obligations of the establishment under the employment relationship and related relationships. Thus, this part is filled out only by persons receiving wages (so both employees and contractors) from the entities indicated above. Parts C and D relate to the same amount reducing monthly tax advances, which part the taxpayer fills out depends on from whom he receives remuneration. The payers indicated above reduce the advance tax calculated on the payments made by an amount equal to 1/12 of the tax-reducing amount without a statement from the taxpayer. These payers, if box D.8 is checked, do not have the option to apply the full amount of the reduction.

Part E: Statement on the intention of preferential taxation of income (with a spouse or as a single person). In box E.10, delete the incorrect content, i.e., item 1 or item 2; item 2 shall be deleted if the taxpayer anticipates that his/her income will not exceed PLN 120,000 and the spouse/child will not receive any income; item 1 shall be deleted if the employee’s anticipated annual income will exceed PLN 120,000 and the spouse/child will not receive any income or will receive income below PLN 120,000.

Part F: Statement on the use of increased employee deductible expenses. In terms of Article 22(2)(3) of the updof, these costs are eligible if the taxpayer’s place of permanent or temporary residence is located outside the town where the workplace is located and the taxpayer does not receive separation tax. In other words, this part is filled out when the taxpayer lives in a locality other than the locality where the workplace is located. By checking the box F.12. the taxpayer will be able to take advantage of the increased deductible expenses, i.e. PLN 300 per month. If the taxpayer lives in the same locality where the workplace is located or does not submit a statement, his tax deductible expenses will be PLN 250.

Part G: Statement regarding the taxpayer’s use of the so-called “zero PIT” return relief for taxpayers settling in Poland (“return relief”), relief for taxpayers with at least four children (“relief for families of 4+”) and relief for working seniors (“relief for working seniors”). In this section, you can check more than one square, i.e., you can take advantage of, for example, the return relief and the relief for 4+ families at the same time, but keep in mind that the annual tax-free income limit is a common one at PLN 85,528.

Part H: Request to waive the “youth tax credit” and/or employee deductible expenses. Completion of Part H should be considered by a taxpayer who assumes that he will exceed the PLN 85,528 tax-free income threshold, because if this threshold is exceeded, the taxpayer will have to pay in his annual tax return the outstanding advance payments, arising after he exceeded the PLN 85,528 threshold.

Part I: Proposal to waive the author’s 50% deductible costs; these costs are regulated in Article 22(9)(1-3) of the updof. Deductible costs amounting to 50% may be applied to remuneration for the use by authors of copyrights and performers of related rights.

Part J: Payer’s request not to take tax advances (under Article 31c of the updof). Individuals who earn no more than the tax-free amount, i.e. PLN 30,000, may not pay advance payments at all during the year and not wait for their refund after the annual PIT return. Based on the application, the employer will not collect PIT advances on income up to PLN 30,000. If the taxpayer exceeds the amount of PLN 30,000, the employer will collect an advance tax payment on the excess without reducing it by the amount reducing the advance payment (i.e., by PLN 300 in the case of one employer/principal, PLN 150 in the case of two and PLN 100 in the case of three).

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