The PIT settlement is getting closer. What tax reliefs are worth remembering?

April is the last month to file your 2024 PIT return. Although basic tax reliefs, such as the child tax relief or the thermomodernisation tax relief, are widely known and often used, there are other preferences that not everyone has heard of. In this article, we will present less popular tax allowances that will help you save money when filing your PIT return.

Internet allowance – even if you have been using the internet for years

If you have never claimed the internet allowance, you can do so this year. It does not matter whether you have a broadband connection or use the internet via your phone, when you connected to the internet, or how high the bills are – the only condition is that you incur expenses for using the internet.

The relief can be accounted for in two consecutive tax years, reducing the tax base by up to 760 PLN each year. However, the deduction only applies to the use of the internet. Therefore, it does not include the purchase or maintenance of hardware. The right to the deduction must be documented, for example, with an invoice from the operator and proof of payment. If the operator bills for more services (adds equipment instalments or television fees), the internet costs must be clearly separated on the invoice.

Donations – can I deduct payments to the Great Orchestra of Christmas Charity?

When filing your PIT return, you can deduct donations to public benefit organisations, blood donation organisations or religious organisations, but these are not the only options available to you.

The following donations can be deducted under this relief (up to a maximum of 6% of income/revenue in total):

• donations to public benefit organisations that meet the conditions specified in the Act on Public Benefit Activity and Volunteerism,
• donations for religious purposes – e.g. for the construction or furnishing of temples,
• donations for blood donation purposes – PLN 130 for each donated litre of blood or blood components,
• donations for vocational training purposes – donations in the form of teaching materials or fixed assets (complete, usable and not older than 12 years) made to public institutions,
• donations for the reconstruction of the Saxon Palace, the Brühl Palace and the tenement houses on Królewska Street in Warsaw.

How to document a donation?

Proof of payment to the recipient’s account (in the case of a monetary donation) or a document identifying the donor and the value of the donation, together with a statement from the recipient (in the case of a non-monetary donation).

The amounts donated in a charity auction are not tax-deductible. Even if the amount paid significantly exceeds the market value of the item, as the auction winner, you are making a purchase, not a donation.

The transfer of 1.5% of the tax to the charitable organisation is made by the authorities after the tax has been settled and paid. This donation will not affect the amount of tax payable, nor does it count towards the limit of donations that can be deducted before tax (6% of income/revenue).

How to take advantage of tax relief?

Depending on the form of taxation and the type of relief, preferences are indicated in the appropriate item of the PIT-37, PIT-36, PIT-36L or PIT-28 tax return with the PIT/O attachment. The e-PIT system will not take most of the reliefs into account when settling the tax return, so it is necessary to enter them yourself. Alternatively, you can also submit a traditional, paper tax return to the tax office.

Expenses that have previously been classified as tax-deductible (unless the law clearly allows for this) or that have been reimbursed cannot be deducted as tax credits.

Even though you do not have to attach all receipts and invoices to your tax return, you should keep the documents that prove your right to tax relief until the liability has expired (for a period of 5 years). Before claiming a tax relief, it is worth checking whether you meet the conditions for claiming it and, if necessary, contacting a tax advisor in case of any doubts.

Summary

The personal income tax return is an excellent opportunity to recover some of your expenses by taking advantage of tax breaks. In addition to the well-known ones, there are many less popular ones that can bring significant savings.

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Legal basis

• Internet tax relief – Article 26(1)(6), (6h), (7) of the PIT Act, Article 11 of the Lump Sum Tax Act
• Commuting tax relief – Article 21(1)(152) of the PIT Act
• Tax relief for donations:
  • for public benefit organisations – Article 26(1)(9)(a) of the PIT Act, Article 11 of the flat-rate tax act
  • for religious purposes – Article 26(1)(9)(b) of the PIT Act, Article 11 of the flat-rate tax act
  • for blood donation purposes – Article 26(1)(9)(c) of the PIT Act, Article 11 of the Lump Sum Tax Act
  • for vocational training purposes – Article 26(1)(9)(d) of the PIT Act, Article 11 of the Lump Sum Tax Act)
  • for the reconstruction of the Saxon Palace, Brühl Palace and the tenement houses on Królewska Street in Warsaw – Article 26(1)(9)(e) of the PIT Act, Article 11 of the Lump Sum Tax Act