Income tax is a material benefit that must be paid to the state budget. There are several ways to calculate the tax, and therefore owners often get lost in their correct calculations. How is income tax calculated? What are the methods of taxation?
Income tax is a mandatory payment to the state authority. The material benefit is paid by a natural person (PIT) and a legal person (CIT). The basic form of settlement is the income received, i.e. income (material benefit) excluding the costs of obtaining this income (expenses to obtain the reward).
How much is income tax? The income tax rate depends on the form of taxes, deductions used, advances, and the amount of gross income. The following thresholds must be mentioned:
- tax measure – 17% is deducted when the annual income does not exceed PLN 85,528 and 32% when the income is higher,
- Linear scale – 19% is the right choice for people with high incomes,
- Income from capital funds or the sale of real estate – 19%,
- CIT basis – 19%,
- CIT preferential – 9%,
- Lump sum on recorded revenue – rates from 2 to 20%.
Individual factors affecting the final amount must also be considered. Check out how income tax is calculated for individuals and businesses.
How is personal income tax calculated?
A normal person does not need to worry about the correct tax calculation. By accessing a dedicated website, you will be able to quickly find your income tax return with the automatically calculated tax amount and send the returns to the office.
How do you complete the declaration yourself? Each taxpayer receives a PIT-11 document from the taxpayer (employer), which contains information on the income received and the costs of obtaining it. Based on this document, you must create a tax return. Form PIT-36 (for business) or PIT-37 (for employees under an employment contract, for a specific assignment and commission) must be completed.
How is income tax calculated? The most important stage is the proper rewriting of the data from the PIT-11 column to the next print. The fields are signed with similar names. You must allocate the data to the same fields.
How is corporate tax calculated?
Income tax must also be settled by corporations, associations, banks, foundations and capital groups. All necessary information is included in the Corporate Income Tax Law.
CIT advances must always be paid by the 20th of the following month. How is income tax calculated in this case? A CIT-8 form must be completed. Legal persons are required to keep complete financial records. To calculate the amount of tax, you need to accurately determine your income including capital gains and other sources of income. CIT taxpayers can deduct from income: a portion of donations, research and development, losses and loans exempt.
The activities of legal persons are usually supported by an accountant who controls the financial flows. The return must be filed by March 31 of the following year preceding the accounting year.
Taxpayers can also settle the tax in a simplified form of advance payments. Every month they pay 1/12 of the amount of income declared for the previous year or two. During the billing period, the total is added up accurately.
How do you calculate income tax online?
How do you calculate income tax online? Natural persons can pay the fee online. It is an easy and quick way to settle your income. Operations are highly automated and intuitive. The first method was proposed by the Ministry of Finance, which created the official government website “Your e-PIT”. We may be able to access employer-issued documents when we log into the site via a trusted profile or bank account. The system updates the content of the profile and prepares the tax return, which only then you need to accept. Verified documents are sent to the tax office. If we are unable to send the hard copy, the system will send it in the last days of settlement. However, it is an application created to meet the needs of people who do not have their own business. The counterpart to business is “electronic advertising”.
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