2021 is the first full accounting year in which the UK no longer belongs to the structures of the European Union or the European Economic Area. As a result, the calculation of many activities of taxpayers, both entrepreneurs and natural persons not carrying on business, has become difficult. As long as the United Kingdom has been a member state of the European Union, economic transactions, services and the provision of work by Polish companies and citizens on the territory of the United Kingdom have benefited from benefits, exemptions, and simplified settlement. Britain’s exit from the European Union changed all that.
Post-Brexit, meeting tax obligations can be difficult. The taxpayers have lost many of the privileges they were entitled to as part of the activities within the community, and on the other hand, they have acquired new obligations due to the fact that Great Britain has assumed the role of a third country, for example in the field of reporting in the field of transfer pricing or related entities.
The departure of the United Kingdom from the European Union in January 2021 caused changes not only in the customs sphere, but also in the official and legal situation in relation to the status of individuals and entrepreneurs who receive income on the territory of the United Kingdom. Does this also apply to income earned in 2021 by Polish citizens in the European Community?
According to art. 3 sec. Under Law No. 1 of the Personal Income Tax Law, persons residing in the territory of the Republic of Poland are subject to taxes in personal income tax on all their income, regardless of the location of their sources. Determining the place of residence for purposes of determining tax residence depends on the fulfillment of one of two conditions:
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