In 2019, the number of freelancers in this country was estimated to be five hundred thousand, and given that, this number is likely to have grown. With this enormous number, investigating the outsourcing scene in Europe’s 10th biggest nation might be an advantageous undertaking, and this guide is here to assist with that.
Who is a freelancer or independent contractor
An independent contractor or freelancer is someone who is self-employed and provides clients with contract-based professional assistance. Freelancer files their taxes on their own and does not acquire particular advantages from a company. He or she is not limited to a single client and is in charge of their work method and schedule.
Beginning as a self-employed entity/specialist
A person will need the following documentation if you are an occupant of one of the EEA nations: A work licence isn’t required. However, the following are needed:
A PESEL, or personal identity number
It is an extraordinary numeral that is allocated to each other and Polish individuals upon their birth. You will require to purchase a PESEL if you do not already have one. There are a few ways to obtain a PESEL, which is free:
- By applying to the location, you wish to reside in.
- At a Municipal council close to your employer.
You can become registered as a Polish resident.
Taxpayer identification number(NIP)
Your taxpayer identification number can be obtained by finishing up the structure. You can likewise go to any Inland Income office. Always visit the office of your employer or where you live or work.
Everything you need to know about working as an independent contractor in this country
A freelancer here has the option of working under an employment contract or starting their own business. If you go the independently employed course, your client doesn’t cover your charges and protection expenses for your benefit. So you don’t lose a major lump of your instalment, yet this likewise accompanies its burdens
To set up an organisation, you want the reports examined before, as well as the CEIDG-1
The CEIDG-1 can be finished up on the web or by enrolled mail.
Contracts
Two contracts need to be chosen before you can work as a freelancer here:
Commission contract
Social Security and health insurance payments are not made on your behalf under this contract. This situation is appropriate when there is no organisation/part of the business laid out in this nation. Social security and health insurance contributions are not withheld in this scenario.
Contract of mandates
This contract specifies a single obligation as well as the rules that go along with it. The Polish Social Insurance Institution will take care of your health and retirement insurance if you sign this contract. When the employer has not established a branch or company in Poland, this scenario applies. If so, your retirement and health care coverage are not held back.
Taxes for independent contractors in Poland
Although paying taxes isn’t the most exciting job, it is one of the most important ones in any job, and freelancing is no exception. The expense rate for all independently employed individuals in Poland is level, and it is 19%.
If you are a Polish tax resident (you live in Poland or stay in Poland for more than 183 days), you are obligated to pay taxes. The tax system in Poland is progressive. As a result, depending on their income, employed contractors would be subject to tax rates ranging from 17% to 32%.
Make sure you submit the appropriate tax form. PIT-36 is for entrepreneurs; PIT-37 is for earnings from the agreement of command or commission.
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