Tax Credit for Seniors If They Don’t Retire and Continue to Work – Define PIT-0 for Seniors. (e) The exemption is a bonus only for seniors who receive income from the ZUS contribution: Employment Contract, Authorization Contract. Check out other conditions that must be met to apply for 9000 plus. Due to the ease of calculation, this yields taxable income (after deducting mandatory social security contributions) of an average monthly amount of PLN 7,217.30, more than PLN 9,000 gross per month.
5 years ago, the retirement age in Poland was brought back to 65 for men and 60 for women, and there was unease about this. The point is that there should be enough money for pensions, in other words, so as not to starve.
The Polish government does not want to raise the retirement age or force retirees by law to suspend benefits and work longer – instead, in order to extend the working period, it has introduced a tax incentive to exempt these people from income tax.
More proposals are planned. Check ideas for the future, but above all the solution that has been in operation since January 1, 2022, that is, PIT-0 for those who have reached retirement age, but have postponed their benefits and continue to work. To whom do they apply, what do they include, and when do they bear fruit? What other incentives to work longer is provided by the government?
Unfortunately, PIT-0 for Seniors does not apply to people who earn contract income for a specific job. These types of contracts are not covered by the compulsory retirement insurance fee. The tax exemption added to the Individual Income Tax Act effective January 1, 2022 does not apply to women over 60 and men over 65 who earn such income. However, if these persons have both contribution-based income and contract-specific income, only the joint income will be included in the personal income tax exemption limit. Income from contracts for a particular business is taxed according to standard rules, i.e. the entire amount of income is taxed at the rates of the tax scale.