The president signed an amendment to PIT exemption covering seafarers
President Andrzej Duda has signed an amendment to the Personal Income Tax Act, which extends the PIT exemption covering seafarers.
The primary purpose of the Act is to extend the exemption from personal income tax on the income of seafarers (citizens of European Union Member States or countries belonging to the European Economic Area) obtained from work on seagoing vessels.
The Act assumes that tax-free income will be obtained from work not only on ships flying the Polish flag but also on ships flying the flag of another Member State of the European Union or a country belonging to the European Economic Area.
This means that all Arriva Shipping operated ships are covered, and all Polish Seafarers will benefit from it from next year.
The Act also changes the minimum period of work on seagoing vessels, conditioning the right to acquire an exemption by replacing the deadline for a period exceeding 183 days with the wording for a period of at least 183 days (the exclusion is to be granted to seafarers provided they work at least half a calendar year at sea, i.e., least 183 days).
It was noted that the tax exemption for seafarers' income obtained from work on seagoing vessels would be applied to income earned from the year in which the European Commission issues a favorable decision on the compatibility of public aid with the internal market and is to apply during the period of the decision.
The Act enters into force on January 1, 2020