09.05.2023 line Uncategorized

The PIT 0 for young freelancers? THERE IS A SOLUTION FOR THAT! Just issue invoices through Bizky.

Zero PIT for young freelancers? THERE IS A WAY! Simply issue invoices through Bizky. As of August 2019, a law introducing the so-called zero PIT for individuals up to the age of 26 came into force. Thanks to this, young people do not have to pay income tax on their earnings. Importantly, the status of a student or pupil does not matter here, the tax relief also applies to people who are not in education. Unfortunately, not all forms of earning are covered by this relief. It cannot be used when settling on the basis of a work contract, being on an apprenticeship or running a business. The PIT exemption only applies to employment contracts and contracts of mandate.

Freelance 0% without opening a business in Poland

The majority of freelancers in Poland settle their contracts by issuing invoices, which means they have to establish a business. This means that in order to be independent in the job market, we are forced to bear high earning costs, as running a business entails paying high social security contributions, income tax and accounting costs.

Moreover, the tax exemption for individuals up to 26 years old does not apply to young entrepreneurs. That’s why so many young people use Bizky. They can invoice multiple clients and benefit from the PIT0 exemption, while avoiding formalities and paperwork, and earning more.

PIT0 for freelancers? There’s a way!

This way, you don’t have to set up a business, which is not covered by the aforementioned tax exemption.

By working with clients and contractors through Bizky, you operate on the same terms as if you were running a company. You have the possibility to issue invoices, bills, deduct incurred costs from taxes, etc. However, since you are operating within Bizky and not as a business, you need to settle such income based on a contract for a specific task or work. These are, of course, signed between Bizky and the person who holds an account with us.

Additional benefits for students

However, this is not the end of good news associated with this form of functioning on the job market.

Most young people are studying or learning. As we mentioned at the beginning of the article, this does not matter for using the zero PIT. However, people under the age of 26 who are receiving education in any way are also completely exempt from paying ZUS contributions when working with Bizky. They do not have to pay any taxes or mandatory insurance contributions to the state. Everything they earn goes directly into their pockets.

Bizky is the cheapest option!

It’s hard to imagine a more financially attractive form of settling one’s work. So how much does it cost to operate within Bizky? Is there a catch?

It’s probably difficult to find one, because the monthly cost of operating within Bizky entrepreneurship is PLN 300 net, and within Bizky you can also issue invoices without using a constant access to our system. You won’t have to incur a fixed monthly cost then, just a small commission.

More articles

employer of record

What is a PEO (Professional Employer Organization)?

A Professional Employer Organization (PEO) is a form of comprehensive human resource outsourcing known as co-employment. In this…

Read more
employer of record

What is IR35, and what does it mean for your business?

The UK recently introduced new legislation to close a tax liability loophole and redefine certain relationships between companies…

Read more

What is headcount?

Employee headcount represents the total number of individuals employed by a company or within a specific department at…

Read more