Individuals with an income exceeding 1 000 000 PLN are required to pay the solidarity levy. The basis for calculating the solidarity levy is the surplus of over 1 million PLN in the sum of taxable income on the terms specified in the PIT Act.
Solidarity levy rates
These persons, in addition to income tax, are also required to pay an additional solidarity levy in the amount of 4% of the excess income of the PIT taxpayer over 1 000 000 PLN.
Time limits for payment of the solidarity levy
The obligatory date of payment of the solidarity levy is scheduled for April 30 of the following calendar year (for 2024, it is April 30, 2025). Within the same period, the taxpayer will be obliged to submit a declaration of the amount of the solidarity levy - DSF - 1.
On what income is the solidarity levy calculated?
The basis for calculating the solidarity levy is the surplus of over 1 000 000 PLN in the sum of taxable income on the terms specified in:
- 27 para. 1, 9 and 9a of the PIT Act (income taxed according to the tax scale, including from employment relationship, business activity, pensions and disability pensions, contracts for specific work and mandate contracts, etc.
- 30b of the PIT Act (sale of securities taxed at the rate of 19%);
- 30c of the PIT Act (income from non-agricultural economic activity or special departments of agricultural production taxed with a flat tax at the rate of 19%);
- 30f of the PIT Act (income from a foreign controlled entity taxed at the rate of 19%).
The regulations do not directly regulate the issue of deducting losses from previous years when determining the solidarity levy base. Therefore, in the individual tax interpretations issued in the past, the tax authorities did not allow for such a deduction. However, from 2024, the Tax Office changes the previously issued negative interpretations and indicates the possibility of deducting a loss from the same source from the basis for calculating the solidarity levy, claiming that if the legislator's intention was not to deduct the loss, it would be explicitly indicated in the regulations.
What income is not included in the solidarity levy?
When determining the solidarity levy, taxpayer’s income is not taken into account e.g. for:
- Revenue from economic activity taxed with a lump sum tax on recorded revenue (PIT-28 form);
- Private rental or lease income, taxed with a lump sum tax on recorded revenue (PIT-28 form);
- Income from the sale of real estate (outside business activity);
- Passive income, e.g. interest on loans or bonds, or on dividends and other income from participation in the profits of legal persons.
Warning - “tricks” in the solidarity levy
- A person who settles accounts jointly with the spouse, for the purposes of the solidarity levy, accounts for the entire income.
- When determining the basis for calculating the solidarity levy, no deductions other than social security contributions are taken into account, such as deductions for donations, rehabilitation relief, R&D relief.
Solidarity levy and revenues earned abroad
- The income earned abroad, to which the method of exemption with progression applies (e.g. income from Germany, France, the Czech Republic, Switzerland, Sweden), is not included in the tax base with the solidarity levy;
- The income earned abroad, to which the method of proportional deduction applies, is included in the tax base with the solidarity levy where the tax credit method is used: (e.g. income from the Netherlands, Great Britain, Austria).
PwC Comment
Calculation of the basis for calculating the solidarity levy is not a simple sum of taxpayer’s income. Certain kinds of income is excluded from the solidarity levy.
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