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PIT-4R - how to fill it in so as not to make mistakes?

Not everyone knows how to fill in PIT-4R. This declaration is submitted to the Tax Office in order to provide information on advances collected and paid to the office by the payer (employer) for personal income tax. The declaration in question does not need to be submitted to the employee. The status shown in PIT-4R should be consistent with the actual amount of advances paid to the tax office. The declaration must be submitted by the end of January of the year following the tax year for which the advances were collected and paid. How to fill in PIT-4R? We suggest below.

How to fill in PIT-4R?

When the payer calculates and collects tax from many employees, in the annual declaration on the collected income tax advances (PIT-4R), the sums of the collected advances for each month of the tax year should be indicated. Pursuant to the provisions of the Tax Ordinance, the amounts of the tax base and the advances themselves sent to the tax office are rounded to full zlotys (the ending of the tax base amounting to less than 50 groszy is omitted, and the ending of 50 grosz or more is increased to full zlotys).

The declaration should also be submitted when:

the amount of tax advances was zero (due to low income and the amount of social security and health insurance contributions),
in a given year or month, the taxpayer did not employ anyone, but in the first month there were also advances.

Example 1.

At MARIA, wages are paid by the 10th of the following month. The employee's remuneration for December 2020 was paid on January 10, 2021. Therefore, the employer pays the employee's income tax for January (the payer is obliged to pay the tax to the tax office by February 10).

The owner of MARIA shows the advance payment in the PIT-4R declaration for 2021. Even if from January 2021 the employee is no longer employed in the company.

The declaration does not need to be completed and submitted if:

the taxpayer did not make any payments that would create an obligation to collect advance payments,
the taxpayer does not employ anyone (pays contributions only for himself).

Part A. Place and purpose of submitting the declaration

PIT-4R should be submitted to the tax office competent for:

the place of residence of the payer - a natural person (including self-employed or
the place of the payer's seat, or
the place of business of the payer (if the payer is not established).

Field 6 shows the purpose of submitting PIT-4R:

submitting information,
correction of information - option 2 should be applied when the declaration is submitted again for the same accounting period.

If you select a correction in field 6 as the purpose of submitting the form, choose the type of correction in field 7:

correction of the declaration referred to in Art. 81 of the Tax Code,
correction of the declaration submitted in the course of tax proceedings on tax avoidance referred to in art. 81b § 1a of the tax ordinance.

Part B. Payer identification data

Payer who is not a natural person (e.g. limited liability company) in item 8 marks the first variant and in pos. 9 enter the full name.
If the payer is a natural person, he selects in item 8, variant 2, and then in pos. 9 gives identification data: surname, first name and date of birth.

Part C. List of advances due

In part C. PIT-4R, we enter the advances reduced by the deductible premium for health insurance.

Line 1.

In line 1. specify the sum of beneficiaries and the sum of advances collected from them (less health insurance contributions), broken down by month. Fields 10-33 concern, inter alia, income from a service relationship, employment relationship, homework or a cooperative employment relationship, cash benefits from social insurance paid by work establishments, and in work cooperatives - payments for participation in the balance surplus.

The number of taxpayers (employees) does not include:

taxpayers who obtained only tax-exempt income in a given month or did not receive remuneration in a given month (they were on unpaid leave for the whole month),
an advance payment calculated from revenues, which is "0",
advances in which the payer was released from the obligation to collect them (Article 22 § 2 of the Tax Ordinance).

However, it should be shown:

a former employee who, after termination of employment, was paid e.g. a bonus (all advances from which the payer was obliged to collect advances),
the amount of advances, the collection of which has been limited (Article 32 (2) of the Act).

Line 2.

In line 2. PIT-4R, due advance payments for income tax for individual months of the tax year are shown, calculated by:

agricultural production cooperatives and other cooperatives involved in agricultural production - on payments made for the benefit of members of the cooperative or their household members on account of settlement days, participation in the cooperative's divisible income, as well as cash benefits from social insurance obtained from cooperatives by these people,
pension bodies - on directly paid pensions, pre-retirement benefits and pre-retirement allowances, teacher compensation benefits, cash benefits from social insurance, structural pensions, social pensions and supplementary parental benefits,
legal persons and their organizational units that pay pensions from abroad,
universities, federations of entities of the higher education and science system, scientific institutes of the Polish Academy of Sciences, research institutes, international scientific institutes established on the basis of separate acts operating on the territory of the Republic of Poland, work establishments and other administrative units - from the scholarships they pay,
employment authorities - on benefits paid from the Labor Fund,
voivodeship labor offices - on benefits paid from FGŚP,
pre-trial detention centers and prisons - on charges for work attributable to temporarily arrested and sentenced persons,
cooperatives - on the interest on cash contributions of cooperative members, charged to the cooperative's costs,
branches of the Military Property Agency - on the cash benefits paid to soldiers resulting from the provisions of the Act of June 22, 1995 on the accommodation of the Armed Forces of the Republic of Poland,
social integration center - on the integration benefits paid and the incentive integration bonus, granted on the basis of the Act of June 13, 2003 on social employment,
a host entity for a graduate internship or student internship - on cash benefits paid for graduate internships or student internships.

Line 3.

In line 3. PIT-4R, the sum of revenues from activities performed personally and from property rights should be shown, in particular:

income from personally performed artistic, literary, scientific, coaching, educational and journalistic activities, including participation in competitions in the field of science, culture and art and journalism, as well as income from practicing sports, sports scholarships awarded on the basis of separate regulations and income judges for running sports competitions,
income from the activities of clergymen, obtained for other reasons than an employment contract,
income from the activities of Polish arbitrators participating in arbitration proceedings with foreign partners,
income received by persons performing activities related to the performance of social or civic duties, regardless of the method of appointing these persons, including compensation for lost earnings,
income of persons to whom a state or local government authority or administration, a court or a public prosecutor, on the basis of relevant provisions, commissioned the performance of specific activities, in particular the income of experts in court, investigative and administrative proceedings as well as public law payers and collectors, as well as revenues from participation in committees appointed by state or local government authorities or administration
revenues received by persons, regardless of the method of their appointment, belonging to management boards, supervisory boards, committees or other decision-making bodies of legal persons,
revenues received by members of the National Media Council,
revenues from the performance of services, on the basis of a mandate contract or a specific specific task contract, obtained only from:

a natural person conducting business activity, a legal person and its organizational unit as well as an organizational unit without legal personality,
the owner (holder) of the real estate in which the premises are rented, or the manager or administrator acting on his behalf - if the taxpayer provides these services only for the purposes related to the real estate,
inherited enterprises - with the exception of revenues obtained on the basis of contracts concluded as part of non-agricultural business activities conducted by the taxpayer and revenues,

revenues obtained on the basis of enterprise management contracts, managerial contracts or contracts of a similar nature, including revenues from this type of contracts concluded as part of non-agricultural business activity conducted by the taxpayer.

Line 4.

In line 4, one should present the advance payments under the activation agreement and any other titles that are settled in the form of advance payments.

Line 5.

In line 5, the sum of the collected advances for particular months of the fiscal year should be presented in lines 1-4 (e.g. 70 = 16 + 34 + 46 + 58).

Line 6.

Line 6. PIT-4R shows the amounts of tax advances, the collection of which has been limited pursuant to Art. 32 sec. 2 of the Act. Pursuant to the aforementioned provision, if benefits in kind, benefits paid for the taxpayer or other gratuitous benefits are due to the taxpayer for a period longer than one month, when calculating advances for individual months, their value is assumed for one month. The employer, at the taxpayer's request, limits the collection of the advance payment for a given month, if it is impossible to determine the part of these benefits for one month, and adding the entire amount in the month of their receipt would result in a disproportionate advance in relation to the cash payment. The amount of the restriction should be entered in line 6 in the month of the restriction.

Line 7.

Advances due for a given month in connection with an earlier limitation of consumption.

Line 8.

It is used to show the additionally collected tax resulting from the settlement for the previous year.

Line 9.

Payers who provide advance payments for income tax to PFRON (State Fund for Rehabilitation of Disabled Persons), company fund for rehabilitation of disabled people or activity fund fill in.

In item 110-121 PIT-4R, enter the advances collected in the given months. They are filled in by payers who are:

sheltered employment establishments:

for the months from the beginning of the year to the month (inclusive) in which the taxpayer's income from the beginning of the year exceeded the amount constituting the upper limit of the first range of the tax scale, submit:

in 10% for the State Fund for the Rehabilitation of the Disabled,
90% for the company fund for the rehabilitation of the disabled,

for the months following the month in which the taxpayer's income obtained from the beginning of the year with this payer exceeded the amount referred to above, they submit to the tax office on general terms,

establishments of professional activity:

for the months from the beginning of the year to the month inclusive, in which the taxpayer's income obtained from the beginning of the year with this payer exceeded the amount constituting the upper limit of the first range of the tax scale referred to in art. 27 sec. 1 of the PIT Act, transfer to the company fund for professional activity,
for the months following the month in which the taxpayer's income obtained from the beginning of the year with this payer has exceeded the amount referred to above, they transfer it on the terms specified for other payers.

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In the case of payers who have lost the status of a sheltered employment establishment employing disabled persons, the amounts of advance payments for tax on the revenues of these persons under the titles specified above and on cash benefits from social insurance paid by these payers to these persons:

for the months from the beginning of the year to the month (inclusive) in which the disabled person's income obtained from the beginning of the year has exceeded the upper limit of the first range of the tax scale, provide the following amounts:

25% for the company fund for the rehabilitation of disabled persons - in the case of payers with the employment rate of disabled persons in the amount of 25 to 30%,
50% for the company fund for the rehabilitation of disabled persons - in the case of payers with the employment rate of disabled persons in the amount of 30 to 35%,
75% for the company fund for the rehabilitation of the disabled - in the case of payers with the employment rate of disabled persons in the amount of 35 to 40%,
100% for the company fund for the rehabilitation of the disabled - in the case of payers with an employment rate of disabled people of at least 40%,
and the rest, on general terms, to the tax office,

in the following months, the amounts of the collected tax advances are transferred by the payers on general terms to the tax office.

Line 10.

It shows the tax collected to be transferred to the tax office for each month of the tax year. From the sum of the amounts for individual months from lines 5, 7 and 8, the sum of amounts from lines 6 and 9 should be appropriately subtracted (e.g. 134 = 70 + 94 + 106-92-110). If the difference is negative, we enter 0.

Line 11.

In line 11. PIT-4R, we enter the remuneration of the payer for the timely payment of income tax. Payers are entitled to a lump-sum remuneration on this account, pursuant to the provisions of the Tax Ordinance (Article 28).

Line 12.

It shows the amounts due to be paid to the tax office for each month. The amounts from line 111 should be subtracted from the amounts for individual months in line 10 (e.g. 146 = 122-134). If the difference in a given month is a negative number, enter 0.

Part D. Explanation on payments

This part of PIT-4R explains the differences between the tax collected and the tax paid for a given period. The payer describes mistakes in payments or in calculating income tax advances.

Part D.2 is a new fragment in which the information is supplemented by people who have suffered negative economic consequences due to COVID-19 and, in accordance with applicable regulations, have benefited from the postponement of the deadline for transferring tax advances

Part E. Signature of the payer or the person designated to calculate and collect the tax / payer's representative

Part E. should be filled in with the name, surname and signature or imprint with the name, surname and official position of the payer or the person designated / representative to calculate and collect the tax.

PIT-4R in the wFirma.pl system

The wFirma.pl system allows you to easily generate a PIT-4R declaration.

To do this, go to the tab START »TAXES» ANNUAL DECLARATIONS »ADD A DECLARATION» ANNUAL COLLECTIVE INCOME DECLARATION (PIT 4R).

Next, a dialog box will appear in which you must select the year and purpose of submitting the PIT-4R annual declaration. After completing the above-mentioned information, select the SAVE option. The generated declaration can be submitted to the tax office via the system. To do this, select the generated declaration and select the SEND TO THE OFFICE option from the upper task bar.