Polish tax regulations allow working seniors a tax exemption, but the interaction with foreign pensions requires clarification, as addressed by the Finance Ministry.
Senior Relief and Foreign Pensions: A Compatibility Check
To qualify for the senior work relief, a taxpayer cannot simultaneously receive a pension. This definitively applies to domestic pensions, regardless of the system—general, agricultural, or uniformed services. The question arises regarding foreign pensions.
What is the Senior Relief?
The senior work relief, based on Art. 21 sec. 1 pt. 154 of the Personal Income Tax Act (PIT), exempts income up to a maximum of 85,528 zł annually.
Eligible Income for the Senior Relief
The relief covers income from various sources listed in Art. 21 sec. 1 pt. 154, such as employment, business activity taxed under the tax scale, a flat 19% PIT, or registered flat-rate tax. Importantly, the senior must be subject to social insurance as defined by the Social Insurance System Act (Journal of Laws of 2025, item 350, as amended) to benefit from the relief.
Ineligibility: Pensions, Rents, and Other Benefits
If a senior wishes to utilize the PIT relief, they cannot receive pensions, rents, or other benefits.
What About a Foreign Pension?
The PIT Act explicitly specifies which pensions, rents, and benefits disqualify an individual from the senior relief. A foreign pension is not listed in Art. 21 sec. 1 pt. 154 of the PIT Act and can therefore be received, as confirmed by the Ministry of Finance on podatki.gov.pl.
Case Study: Returning to Poland with a German Pension
The Ministry of Finance responded to a query regarding a 65-year-old who returned from abroad and is working under a contract with a Polish company (with ZUS contributions). They do not receive any Polish pension benefits but have a pension from Germany. The Ministry confirmed that income from the contract is eligible for the senior relief, as the foreign pension does not disqualify them, provided other conditions are met.
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