Persons working on the basis of civil law contracts, i.e. on the basis of a contract of mandate or contract for specific work, are obliged to settle the tax with the tax office no later than 30 April 2021. Settlement should be carried out in accordance with strictly defined rules, both on the part of the taxpayer and the employer. To settle the pit, the taxpayer can use the services of an accounting firm or use online wizards to settle annual tax returns. Read the article to the end to find out how to settle the PIT from a contract of mandate and contract for specific work.
What form is used to account for income from a contract of mandate and contract for specific work?
For both of these contracts, the employer acts as a payer and collects advance income tax payments. The employed person receives a payment, which is the net amount and thus does not have to worry about paying advances on tax. If you earn income under a civil-law contract, you should make a tax return to the tax office on form PIT-37. The income earned by the taxpayer is subject to taxation on the general principles, i.e. according to the 17% and 32% tax scale.
What is required to complete the tax return?
If you are employed under a contract of mandate or contract for specific work, you must obtain a PIT-11 form from your employer by no later than March 1, 2021. The form contains information which you will need to settle with the tax authorities at a later date. The PIT-11 form informs about the amount of income earned during the tax year and the costs incurred. These include the cost of obtaining income, the amount of advance payments collected for income tax and the amount of social security and health insurance contributions collected.
How to settle PIT on contract of mandate and contract for specific work? – Reliefs and deductions in PIT-37
Taxpayers filing PIT-37 may benefit from the option to settle jointly with a spouse or as a single parent. Apart from that, there are various allowances and deductions included in the PIT Act, which in fact lower the tax due. Some of the most common tax reliefs and deductions include:
- for internet,
- rehabilitation relief,
- for medicines,
- for children (pro-family),
- for blood donors,
- for a car,
- for work abroad.