The tax relief was introduced into the Polish Personal Income Tax Act on January 1, 2018 and, as a rule, limited the negative effects of double taxation for taxpayers who obtained income from certain sources abroad.
The legislator decided to limit this relief by introducing limits, so in practice, from January 1, 2021, the provisions on relief are practically dead. Its purpose is the possibility of remitting a certain part or even all of the income tax on income obtained in a country other than Poland. Abolition relief applies to Polish residents (unlimited tax obligation) who earn their income only abroad.
The change means that taxpayers will still be able to take advantage of the relief, but after exceeding the tax-free amount, i.e. over PLN 8,000, they will pay more PIT. Taxpayers will be required to pay the difference resulting from the tax paid abroad, and its value in Poland – after exceeding PLN 1,360. If this amount is exceeded, the rates of 17% and 32% will apply.