The annual return obligation applies to any taxpayer who has earned income subject to income tax. This obligation depends on the tax residency (place of residence) of the individual and is related to the so-called unlimited or limited tax liability.

A person with residence in the territory of the Republic of Poland pays tax on all his domestic and foreign income, regardless of the location of the sources of income. In the case of limited tax liability, the place where the income is earned is decisive. Therefore, individuals who do not have a place of residence or permanent residence in the territory of Poland, but earn income here, may be income taxpayers.

Tax settlement should be made on the appropriate PIT form, i.e. PIT-36 (from business activity, among others) , PIT-36L (flat tax), PIT-37 (employment contract, civil law contract), PIT-38 (capital income), PIT-39 (sale of real estate), PIT-28 (entrepreneurs settling lump sum).

Depending on the source of income and the method of tax settlement, taxpayers can take advantage of tax credits and deductions, and have the option of donating 1.5% of their tax to Public Benefit Organizations (PBOs).