According to the public benefit and volunteer work Act of law, from January 1, 2004 individual taxpayers (PIT) have an opportunity to reduce their income tax - as calculated in annual statements (PIT36 and PIT37) - for the amount equal to 1% of the tax, by donating this amount to the selected public benefit organization.
Every taxpayer can take this opportunity in two ways:
CHOOSE THE ORGANISATION
Choose one or more public benefit organizations you want to give 1% of your tax.
The official register of public benefit organizations is available at the internet websites:
CHECK THE DATA
Check the NGO's data necessary to make a payment:
All information can be also provided by the NGOs themselves, e.g. at their websites.
FILL IN THE PIT FORM AND CALCULATE 1% OF YOUR TAX
Fill in the appropriate PIT form (PIT-36 or PIT-37) and calculate the amount of the tax*. Calculate 1% of the due tax and put this amount in the proper table.
*Taxpayers conducting business activity pay the flat-rate tax, and use the PIT-28 form (position no 103). In that case tax statements are submitted till the end of January of the year subsequent to the given fiscal year. Attn: Do not submit the statement prior to making the payment!
FILL IN THE TRANSFER FORM
The form must include:
MAKE A PAYMENT
Transfer the calculated amount to the bank account of the selected organization. Do it between May 1 and December 31 of the fiscal year, and from January, 1, till April, 30, of the subsequent year - the day when you submit your tax statement.
You can do it:
REDUCE YOUR TAX AT 1%
From the amount of due tax deduct the amount of 1% (as calculated in the STEP 3).
Remember that you can donate an unlimited amount but you can reduce your income tax only for the amount equal to 1% of the due tax.
SUBMIT YOUR TAX STATEMENT
Submit the statement in the revenue office by April 30 (in 2006 till May, 2).
Keep the proof of the payment to be shown in case of the controlling procedure if the tax office.
In case of overdue payment the revenue office will return the amount equal to 1% of the tax. In other situations the due tax shall be reduced for the amount donated to the public benefit organization equal to 1% of the due tax.
In case that you have any questions, please contact the tax office.
* According the regulation issued by the Polish Post Office bank fees on 1% payments to the public benefit organizations have been reduced from 2,5 PLN to 1,00 PLN. Read more
Go to the register - http://bopp.pozytek.gov.pl
Social campaign "1% of the income tax - new form of individual philanthropy"
Ministry of Justice www.ms.gov.pl
(official register of public benefit organizations)
Ministry of Finances www.mf.gov.pl
(tax forms, addresses of tax offices)
Article 27 d of the Physical persons income tax Act of law of July 26, 1991 (Journal of Law of 2000: No 14, item 176 with amendments)
Article 14a of the Act of law on the flat rate on some incomes of physical persons of November 20, 1998 (Journal of law, 1998, no 144, item 930 with amendments).
|Who is entitled to donate:|
Physical person (PIT)
Legal person (CIT)
|Who is entitled to donate 1%:|
Physical person (PIT payer)
|Who is entitled to receive the donation:|
Organizations enumerated in the article 3, item 2 and 3 of the public benefit and volunteer work act of April 24, 2003 (Journal of Law no 96, position 873) conducting public benefit activity, i.e.:
-legal entities and organizational units of churches and religious unions
-local authority organizations unions
Who is entitled to receive the donation:
Public benefit organizations*
As defined in the art. 4 of the public benefit and volunteer work Act of law
Up to the decision of the beneficiary
|The donation is deducted from the base amount for taxation||Due tax as calculated in the tax statement is reduced for 1%|
- in case of individual donors: deduction of the donated amount, no more that 6% of the income
- in case of legal entities - up to 10% of the income
No more than 1% of the due tax
When to make a donation:
The whole year
When to donate 1%:
Starting from 2005, on:
|It should be noticed that the individual donor can both make a charitable donation and donate 1%.|
*Public benefit organizations are: non-governmental or religious organizations, legal entity or organizational unit, local authorities organizations unions, which conform to all the requirements included in the public benefit and volunteer work Act of law (articles 20 and 21) and which obtained the public benefit status, registered in the National Court Register.
According to the data on the individual tax statements for 2004 – presented annually by the Ministry of Finances read more>> – 680 541 taxpayers abated the income tax because of a remittance in aid of public benefit organizations (1%), which amounted to 41 616 thousand zloty:
The amount of taxpayers, who donated 1% of the tax in aid of public benefit organizations, increased 88,2% as against last year. In 2003 only 80 320 taxpayers took an opportunity of a donation 1% of the tax in aid of public benefit organizations.
|Taxpayers who have taken the opportunity of the 1% deduction||Amount [PLN]||Taxpayers who have taken the opportunity of the 1% deduction||Amount [PLN]|
|The general fiscal regulations (progressive tax scale)||80 194||10 305 000||676 912||41 040 000|
|Flat-rate taxpayers||126||60 000||3 629||576 000|
|80 320||10 365 000||680 541||41 616 000|