“Reward” for paying taxes?
February 13, 2023
Not all entrepreneurs remember that they deserve some kind of “reward” for paying certain taxes in Poland on time According to Art. 28 of the Tax Ordinance, payers who pay taxes on time have the right to receive remuneration. Importantly, the remuneration is due for the correct performance of the payer function, i.e. cases where the entrepreneur is obliged to calculate and pay taxes for another entity. Complicated? Not really!
Who is the payer who can get the “reward”?
All entrepreneurs who employ employees act as payers – in accordance with tax regulations, they are payers of advances for personal income tax on salaries paid to employees. Payers are also those entities that collect the so-called withholding tax on certain types of payments – such as interest, royalties – made to contractors not based in Poland. Remuneration is not due for timely payment of taxes such as VAT or CIT. It should be remembered that remuneration is due for timely payment of taxes to the tax office’s account – so if we miss the deadline for payment of PIT advances for our employees or withholding tax, we are not entitled to remuneration.
What is the remuneration for timely payment of taxes?
The amount of payers’ remuneration is specified in the provisions of the Regulation of the Minister of Finance of June 28, 2022. on the payer’s and collector’s remuneration for timely payment of taxes to the state budget and is generally 0.3% of the amount of collected taxes. On the other hand, due to the timely payment of PIT collected by the payer in the period from July 1, 2022 to December 31, 2023 on taxable income using the tax scale, it is as much as 0.6% of the amount of tax collected.
How to receive remuneration?
This remuneration is settled by reducing the tax advance or the tax itself, which are paid to the tax office. Therefore, we do not receive any additional transfer from the tax office, but we only pay a smaller amount than it results from the calculation prepared by us. There is also no obligation to inform the tax office during the tax year that we have collected the remuneration we are entitled to.
When submitting annual declarations for a given type of tax, e.g. PIT4R (in relation to advance payments collected on salaries paid to employees) or CIT 10Z (in the case of payments to foreign contractors from whom withholding tax was collected), the amount of remuneration withheld should be indicated in the appropriate column.
“Reward” for paying taxes is your revenue
It is worth remembering that the payer’s remuneration is taxable income. Therefore, remember not to forget to make appropriate entries in the books on the revenue side when settling this remuneration.
What if we have not collected remuneration yet?
If, so far, we have fulfilled the function of payer in a timely manner, and we have not collected remuneration, it is possible to “recover” the amounts due by appropriately correcting the previously submitted tax declarations/information. We also have the right to make corrections until the statute of limitations expires on the taxes for which we would be entitled to remuneration (as, inter alia, in the individual interpretation of the tax law of December 30, 2020. 0111-KDIB2-1.4017.26.2020.1.MK). Similar solutions also apply in the case of being a payer of social security contributions – we encourage you to familiarize yourself with these regulations.