1,5% Tax donation for specific Polish public welfare organization

Submitting an annual return is mandatory for all individuals subject to the provisions of the Personal Income Tax Act. It is also a good opportunity to support public welfare organizations without incurring additional costs. 1.5% of the tax may be transferred by taxpayers settling the annual tax return on the following forms: PIT-OP, PIT-28, PIT-36, PIT-37, PIT-38 or PIT-39 by indicating amount of 1.5% of the tax and KRS number (Polish Company Register number) of the public welfare organization in the appropriate sections of the declaration.

What is a public welfare organization, how to choose it and where to look?

The definition of a public welfare organization (OPP) was introduced by the provisions of the Act on Public Welfare Activities and Volunteerism on 1 January 2004. OPP status granted upon an application submitted to the economic department of the National Court Register of District Courts competent for the organization's headquarters. Non-governmental organizations as well as capital companies that conduct public welfare activities unrelated to running a business, may apply for the OPP status after meeting the criteria specified in the above-mentioned Act.

OPP can be selected using the list kept by the Director of the National Freedom Institute - Center for Civil Society Development (NIW). The current list of public welfare organizations entitled to receive 1.5% tax can be found on the NIW website.

What is the 1.5% of tax due and the rules for its transfer?

Donating 1.5% of tax due is not a typical donation or a tax relief. These are funds that, according to the taxpayer's declaration, are due to the tax office, therefore the decision to transfer 1.5% of the tax to OPP does not affect the final amount of tax to be paid and does not generate additional costs for the taxpayer. This is a kind of division/ relocation of taxes due between public budget and welfare organization. If OPP is not indicated, the entire tax due will go to the public budget.

Taxpayers should not make direct transfers of 1,5% of tax due to a selected public welfare organization. After agreeing to transfer part of the tax due, included in the tax return or its correction, the Head of the tax office (competent for the taxpayer's place of residence) transfers to the selected OPP an amount not exceeding 1.5% of the tax due, resulting from the submitted annual tax return or its correction (if submitted no later than within one month from the expiry of the deadline for submitting the tax return).

Apart from agreeing to transfer 1.5% of the tax and providing the KRS number of the selected OPP, the taxpayer also has an option of indicating a specific purpose of the donation. Depending on preferences, the taxpayer may remain anonymous or agree to share his or her personal data with a selected organization, e.g. name, surname, e-mail address or telephone number.

1.5% of the tax can also be transferred when submitting the annual tax return electronically via "Twój e-PIT" platform by indicating the KRS number of the selected OPP from a list.

Disposition of reallocation of 1.5% of the tax due can be also made in corrected tax return (however, it is effective on condition that correction is filed in a one month period after the statutory deadline.

Co-author:
Marta Radek-Kaczmara, senior consultant, GES team