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Pay your income tax

 
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elblagski



Joined: 10 Mar 2003
Posts: 24

PostPosted: Wed Jul 21, 2004 2:32 pm    Post subject: Pay your income tax Reply with quote

All teachers in poland working for private language schools by law must pay income tax.

Firstly, you nee a NIP (numer identefikacja podatkowe) (tax) number, easily obatainable via the loca Urzad Skarbowe.
This is especially important if you are thinking of spending any decent time in poland because the tax office could 'sting' you for a tax bill when they catch up with you. There is an up side. When you fill in you yearly return you usually get a rebate. Mine was around 1000zl.
Don't beleive schools when they tell you that you don't have to pay tax. It's not true. The only exceptions are govern,ment institutions like universities where you can have your tax waived for a maximum of 2 years.

I found out about this to my detrement.

Elblagski
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Alex Shulgin



Joined: 20 Jul 2003
Posts: 553

PostPosted: Wed Jul 21, 2004 8:25 pm    Post subject: Reply with quote

And remember that your tax should be 20%, of which 20% is deductable bringing the tax down to 16%. Not the 35% that I've seen schools such as Berlitz claim you have to pay. No doubt school managers/owners such as kymro will come here claiming that they have to deduct lots more than 16% but they're just telling more lies. What else can you expect from people who want to see discussion about how much a teacher should earn stopped?
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elblagski



Joined: 10 Mar 2003
Posts: 24

PostPosted: Thu Jul 22, 2004 11:06 am    Post subject: Income Tax Reply with quote

I pat 16 % but I don't understand how 20% of 20% can be deducted?
Can you explain this to me?

Elblagski
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Alex Shulgin



Joined: 20 Jul 2003
Posts: 553

PostPosted: Thu Jul 22, 2004 2:33 pm    Post subject: Reply with quote

The tax rate is 20% with no deductables. However 20% of your income is assumed to be the cost of earning your living (ie the money that you have to spend in order to earn what you earn). As you only pay tax on what you have left from your income after your expenses you can deduct 20% of your entire salary from your tax bill. 20% of 20% is 4%. So your tax load is cut by 4%.

It probably makes sense to accountants.
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mike10



Joined: 11 Jul 2004
Posts: 28

PostPosted: Sat Jul 24, 2004 3:34 pm    Post subject: Reply with quote

It makes perfect sense. However, teachers working for RECOGNIZED private schools can also be tax exempted for upto 2 years. It depends on school's status. However, it only applies to UK, US, Australian and South African citizens. Irish and Canadians are excluded - don't ask me why. It is regulated by dual taxation government agreements between Poland and each of the countries.

As of January 1st, 2003 foreigners don't have the right to 20% tax deductable amount, so there is a flat rate of 20%. The up side is that 20% tax stays flat irrespective of teacher's annual income i.e. doesn't jump to 30% or 40% even if you go the next tax bracket. Hope this makes sense.
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elblagski



Joined: 10 Mar 2003
Posts: 24

PostPosted: Sat Jul 24, 2004 3:58 pm    Post subject: income tax Reply with quote

Mike 10

You're half right
Infact the double taxation agreement means that you won't be taxed in 2 countries on the same money not that you don't have to pay tax in either.
For eg. I work in Poland and pay tax in Poland, I don't get taxed on this money in UK. I alsowork in Uk and get taxed in the UK but don't get taxed in Poland for this.
I've heard of this scam before about the 2 years thing. There's a tax office in Gdansk with a dedicated section for foreigners they'll tell you the same thing o go down to the law library. If you want the article number I'll be happy to tell you I just have to root out the photocopies.

Elblagski
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Alex Shulgin



Joined: 20 Jul 2003
Posts: 553

PostPosted: Sat Jul 24, 2004 10:53 pm    Post subject: Reply with quote

mike10 wrote:
It makes perfect sense. However, teachers working for RECOGNIZED private schools can also be tax exempted for upto 2 years. It depends on school's status. However, it only applies to UK, US, Australian and South African citizens. Irish and Canadians are excluded - don't ask me why. It is regulated by dual taxation government agreements between Poland and each of the countries.

As of January 1st, 2003 foreigners don't have the right to 20% tax deductable amount, so there is a flat rate of 20%. The up side is that 20% tax stays flat irrespective of teacher's annual income i.e. doesn't jump to 30% or 40% even if you go the next tax bracket. Hope this makes sense.


No. You are wrong about both of those two things. I know you're wrong about the second point because I applied for my temporary resident's permit in April 2004 (yes I was one of the unlucky Brits). While doing that I had to obtain a letter from the tax offices of each town I had been registered in stating that I owed no tax. The office in Warsaw were happy to give me such a certificate and I had paid 16% tax in 2003 (just like all the other years).

As for the first point: Yes it was true once. But the law was changed back in 1996. Now there are no tax holidays in Poland. However there are still a few schools who claim that their employees are tax exempt. They are the schools which pay in cash every month and refuse to transfer the money into your bank account. If you ever wonder if a school is paying tax on your salary just ask them to transfer it to your Polish bank account from their company account. There is only one reason they'd refuse: because they aren't paying tax on what you earn.
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elblagski



Joined: 10 Mar 2003
Posts: 24

PostPosted: Mon Jul 26, 2004 2:25 pm    Post subject: Tax Reply with quote

Thanks for even more clarification Alex
The sooner schools who dodge taxes are known about the better.

Even better would be to request your PIT form for the tax year from your school. Those who can not provide one or who give you one with ZERO tax paid are obviously up to no good.

Elblagski
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