Tax reducing amount - full-time job and activity


It happens more and more often that entrepreneurs, apart from running their own business, work full-time. In a situation where the activity is taxed on general principles, i.e. according to the so-called of the tax scale, the question arises - how to correctly account for the amount reducing the tax (PLN 556.02 per year)?

It is certainly not possible to deduct it both as part of an activity and as part of a full-time job.

Being employed full-time, the employee completes PIT-2, which entitles the employer to reduce the advance on the employee's income tax by 1/12 of the amount reducing the tax. Such a declaration informs the employer that his employee:

  • does not receive an old-age or disability pension through the payer,
  • does not receive income from membership in an agricultural production cooperative or other cooperative engaged in agricultural production,
  • does not achieve income from which it is obliged to pay advances pursuant to art. 44 sec. 3 updof: from the economic activity referred to in art. 14 or from rent or lease,
  • does not receive cash benefits paid from the Labor Fund or the Guaranteed Employee Benefits Fund.

If, during employment, an employee undertakes business activity, he must inform the employer about it, because the taxpayer may deduct this amount under one of the titles, with priority always being given to economic activity.

This position results from the fact that the advance on income tax when taxed on general principles is calculated in accordance with Art. 27 of the PIT Act. The aforementioned legal regulations do not allow for the omission of the amount reducing the tax, and thus, with such a source of income, the taxpayer must apply it.