Do you run a business and work full-time? Check which PIT to fill in!

Service-Tax

Running your own business does not have to mean giving up your full-time job. Nowadays, many people are doing great running their own business and working full-time at the same time. However, how to proceed when the fact of settlements with the tax office is faced? Which PIT should be filled in to make a correct income tax settlement?

Accounting for activities on general terms and full-time work

If the taxpayer conducts business activity taxed on general principles - according to the tax scale - and at the same time works full-time, then it is possible to settle income tax annually on one PIT declaration.

Taxation according to general principles is based on the application of income tax rates, which increase with exceeding the statutory thresholds (17%, and from the surplus over PLN 85,528 - 32%).

In order to settle your business and full-time work, you should use the PIT-36 declaration. In part E of the form, you should provide the appropriate amounts with a distinction between individual sources of income - from business activity and full-time employment.

An additional benefit of this form of settlement is the fact that it allows you to take advantage of various types of tax reliefs, e.g. pro-family relief.

A detailed discussion of deductions and allowances included in the annual tax return can be found in the article: Annual PIT settlement - what can be deducted from tax?

Flat tax and full-time work

If the business activity is taxed with a flat tax and the taxpayer works full-time, it is necessary to submit two separate PIT returns. One from business and the other from full-time work.

A flat tax is a form of business taxation in which income is taxed at a fixed tax rate - 19%, regardless of the amount of income generated during the tax year.

The entrepreneur submits PIT-36L from economic activity taxed with the rope tax. This declaration should also be accompanied by Annex PIT / B, which contains information on the amount of income / loss from non-agricultural business activity in a given tax year.

On the other hand, the entrepreneur settles the income from full-time employment through the PIT-37 declaration.

Flat taxation completely removes the possibility of joint settlement with the spouse. The fact of obtaining additional income from full-time work taxed on general principles is irrelevant here.

Lump sum and full-time work

When taking up a full-time job and at the same time running a business that is settled on the basis of a lump sum, the taxpayer is also required to submit two tax declarations.

Lump sum is a simplified method of business taxation. Tax is paid on the income generated and it cannot be deducted by tax deductible costs.

In this situation, you should submit PIT-37, thus making the settlement of income from full-time work. It is also necessary to submit PIT-28 due to running a business activity taxed on the basis of a lump sum. This declaration should be accompanied by Appendix PIT-28A, which provides information about the income of the entrepreneur taxed on the basis of a lump sum.

Tax card and full-time job

When conducting business activity taxed on the basis of a tax card, while working full-time, the taxpayer is also required to submit two separate tax declarations. A tax card is a simplified method of settling income tax. The amount of tax to be transferred to the tax office is determined in advance by the head of the competent tax office. The taxpayer is not required to keep records, file tax returns and make advance payments. Settlement of income from full-time work, as in the above cases, should be made using the PIT-37 declaration. When it comes to income from business activities taxed with a tax card, it is necessary to submit PIT-16A (this is a declaration on the amount of health insurance contributions paid and deducted from the tax card in each month of the tax year).

Deadlines for submitting annual declarations

It is worth remembering that not all PIT declarations have the same deadline for submission to the tax office. The date of the deadline depends on which type of PIT form we are obliged to submit. For this reason, it is worth finding out when the deadline for submitting the declaration expires.

TYPE OF TAXATION

ANNUAL DECLARATION

DATE OF SUBMISSION

Full-time work - general rules

PIT-37

April 30

General principles, tax scale

PIT-36

April 30

Linear tax

PIT-36L

April 30

Lump sum on recorded revenues

PIT-28

until the end of February (in 2021 until March 1 for 2020)

Tax card

PIT-16A

January 31

The PIT tax return to the tax office can be delivered:

  • in person - by submitting them to the receipt window in paper form,

  • via the Internet - by sending in electronic form,

  • by mail - via Poczta Polska or the Polish Consular Office. In this situation, however, it should be borne in mind that the date of submission of the form is the date of the postmark.

From 2019, it is not necessary to prepare the annual PIT-37 declaration on your own, because tax offices will fill them in for taxpayers and make them available for verification on the Tax Portal. Annual settlement in this way is possible thanks to the Your e-PIT service on PIT-37 and PIT-38 forms.

In 2020, the Your e-PIT service will also be available to entrepreneurs who prepare PIT-36, PIT-36L and PIT-28 tax returns. More information in the article: Your e-PIT, i.e. for whom will the office prepare the annual tax return in 2020 ?.

How to generate an annual tax return in the wfirma.pl system?

Users of the Online Accounting or Online Accounting + Extensive warehouse package can generate annual business statements in the wFirma.pl system, as well as collective annual declarations regarding advance payments for employees.

To generate an annual tax return, go to the tab: START »TAXES» ANNUAL DECLARATIONS »ADD DECLARATION and then select one of the appropriate forms:

  1. Annual income tax declaration on general terms (PIT 36),
  2. Annual flat income tax declaration (PIT 36L),
  3. Annual flat-rate income tax declaration (PIT 28).

Data on revenues and costs, income, paid advances or social security contributions will be automatically completed, because the declaration is generated on the basis of data in the system. As a result, the user does not have to manually enter data into the form.

In the case of conducting taxable activity on general terms and at the same time working full-time, the taxpayer has the option of settling income from both sources on one PIT-36 declaration generated from the system.

Additionally, it is possible to send the annual declaration directly from the system, and when the declaration is delivered to the office, download the official confirmation of receipt (UPO).