Annual settlements of foreign income for the purpose of tax payment in Poland

On 30th April 2019, the deadline expires for settling your 2018 tax liabilities. You should already start to properly report any income you earned in 2018.

What should you remember when settling your personal capital income for 2018?

Any Polish taxpayer who owns a banking or investment account held at a foreign financial institution should remember that they are obliged to include foreign capital income in their annual tax return. The variety and volume of transactions performed within investment portfolios and the nature of foreign investment products means that it can be more complex and timeconsuming to properly settle foreign capital income than domestic income.

 

NOTE: Failure to disclose such income may be considered as tax evasion and result in fiscal penalties.

Which foreign capital income should you include when drawing up your annual tax return?

 

interest on funds located on bank accounts

interest (discounts) on securities

dividends

shares in capital funds

income from the sale of shares and stocks

income from the disposal or execution of financial instruments etc.

Which are the most common errors and problems when settling foreign capital income?

  • lack of awareness regarding tax law and the obligation to include such income as part of Polish tax settlements,
  • problems in properly categorising foreign investment products from the perspective of Polish tax law,
  • applying incorrect exchange rates when calculating tax revenues and expenses,
  • incorrectly associating tax revenues and expenses.

What else should be remembered?

  • Given the specific way of settling capital income, even if your 2018 investment portfolio ended with an overall negative result, it may be that certain transactions generated income that must be included in your annual tax return in Poland and that tax may still be payable.
  • Since 2018, bank accounts held at Swiss banks are disclosed to the Polish tax authorities. The Ministry of Finance possesses information about all (banking and investment) accounts belonging to Polish citizens and held at Swiss banks, including the value of any deposited assets.

How can we help?

  • Based on reports compiled by foreign investment banks, we ensure that all of the transactions in your investment portfolios are properly categorized from the perspective of Polish tax law.
  • We ensure that the entire procedure for settling foreign capital income earned in 2018 is completed smoothly and efficiently.
  • We prepare your full tax return, including details ofother sources of foreign and domestic income.
How can we help?

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Patrycja Goździowska

Patrycja Goździowska

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Tomasz Wickel

Tomasz Wickel

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Agnieszka Telakowska-Harasiewicz

Agnieszka Telakowska-Harasiewicz

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