Solidarity levy in explanations of the Minister of Finance

Since January 1, 2019, a new public benefit has been in force called „solidarity levy”, whose calculation and collection principles have been included in Article 30h of the Personal Income Tax Act.

The obligation to pay solidarity levies applies to natural persons who have earned taxable income: according to the tax scale (from work, retirement, managerial contracts, excluding specific income on the basis of double taxation avoidance agreements), business income taxed at 19%, income from certain profits equity and income from a foreign controlled company (CFC).

Income from the abovementioned titles are added together. Then, income-reducing amounts and PLN 1,000,000 are deducted from such sum of income (because the surplus of income over PLN 1,000,000 is taxed (or actually burdened with levy). In addition, income tax paid abroad, if such income was included in the sum of income, is also deducted proportionally from the solidarity base calculated in this way. Account should be taken of double taxation conventions.

The solidarity levy rate is 4% of the abovementioned base. The first payment obligation will occur until April 30, 2020. In addition to the payment itself, you will need to submit an appropriate declaration (DSF-1) to the appropriate tax office for the natural person charged with this tax.