On 31 January 2024 ends the deadline for filing 2023 PIT-11 forms providing information on revenue from other sources, income, and income tax advances collected. The form must be submitted to tax authorities using electronic means of communications only. Importantly, employers must make and send PIT-11 forms to their employees by the end of February at the latest. In 2024 this deadline elapses on Thursday, 29 February.
Failure to submit the PIT-11 form or submitting it in violation of statutory deadlines means that the taxable person becomes liable under the Polish Fiscal Criminal Code of 10 September 1999.
PIT-11 form for posted workers
Employers can face major problems in terms of correct preparation of PIT-11 forms for employees who throughout the year worked abroad or foreigners taking up work in Poland.
This stems, inter alia, from the fact that income earned by such employees throughout the year may be subject to taxation in multiple countries. Specific issues include grossing-up the granted benefits with tax due, social security, and health insurance contributions, where the benefit was offered to an employee in its net value, or the collect allocation of revenue in the PIT-11 form, where part of the revenue is taxed abroad, and it is subject to the exemption with progression method to prevent double taxation.
Finally, when preparing the PIT-11 form, the remitter must identify the taxpayer’s tax residency and - in the case of employees with limited tax obligation in Poland - among other things, obtain information about their foreign address.
Remote work from abroad and PIT-11
Having taken into consideration the global shift in work models and the needs communicated by employees, businesses all over the world opened to remote working. At first treated as a temporary solution, telecommuting became a permanent fixture and an element of the operating model of many organizations. Work performed from anywhere (including abroad) became part of the new reality, which, apart from many benefits, brings many challenges, especially for employers.
The key problem faced by employers is to identify the risk of rendering work from any place in the world and determine how this impacts their obligations. Particular focus should be placed by employers (remitters) on the place of residence of their employees and the place the work is actually performed, as this can influence the way the PIT-11 form would be filled.
Some issues to be explored
Below we present some issues and questions that should be tackled when preparing PIT-11 forms:
- Which part of the amount of revenue shown in the PIT-11 form relates to income earned in Poland and which part relates to income earned in a country in dealings with which the exemption with progression method as the double taxation avoidance method applies?
- Was the revenue earned abroad and shown in the PIT-11 form reduced by 30 percent of per diems paid on account of business trips? Is the employee eligible for such a reduction? Similarly, has the basis for calculating social security contributions been reduced by the equivalent of the per diem due for a business trip and is the employee entitled to this reduction?
- Does the PIT-11 form confirm the value of supplementary performances and benefits granted to the employee in relation to posting? If such performances and benefits are granted in their net value, were they grossed-up respectively?
Considering the above, we would like to support you in the process of preparing PIT-11 forms, in particular in the field of:
- Analysis and verification of your situation in the context of PIT-11 form preparation;
- Review of HR and payroll documentation in order to correctly prepare an annual income report;
- Preparation and coordination of the process of drawing PIT-11 forms for employees.
