PIT-11 is a form providing information on revenue from other sources, income, and income tax advances collected.
It must be filed with tax authorities electronically by the end of January.
Importantly, employers must prepare and send PIT-11 forms to their employees no later than the end of February. In 2025, this deadline elapses on Friday, 28 February.
Failure to submit PIT-11 form or submitting it in violation of statutory deadlines means that the taxable person becomes liable under the Polish Fiscal Criminal Code.
The most significant challenges related to PIT-11 form are presented below.
PIT-11 form for posted workers
Employers may encounter significant challenges when preparing PIT-11 forms for employees who have worked abroad during the year or for foreign nationals working in Poland.
This is partly due to the fact that income of such employees 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 correct 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 determine the taxpayer's tax residency. For employees with limited tax obligations in Poland, this includes obtaining information about their foreign address, among other details.
Remote work from abroad and PIT-11 form
Another concern is how to treat remote work from abroad. The main challenge for employers in this case is identifying the risks associated with employees working from anywhere in the world and understanding how this affects their obligations. Particular focus should be placed by employers (remitters) on the place of residence of their employees and the place where the work is actually performed, as this can impact the way the PIT-11 form is filled.
Some issues to be explored
Below we present some issues and questions that should be tackled when preparing PIT-11 forms:
- What portion of the revenue reported on the PIT-11 form pertains to income earned in Poland, and what portion pertains to income earned in a country where the exemption with progression method is applied for double taxation avoidance?
- 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 contain conformation on the value of supplementary performances and benefits granted to the employee in relation to posting? Were such performances and benefits granted in their net value grossed-up respectively?
- Has the revenue reported on the PIT-11 form been accurately determined based on the employees' tax residency status?
How can we assist you?
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.
