Short answer: You can't.
Youth tax relief, i.e. income tax exemption for individuals up to 26 years of age, is available in relation to income earned from:
- employment contracts,
- contracts of mandate,
- graduate internship,
- student internship,
- maternity benefit.
Income up to PLN 85,528 in a tax year is tax-exempt. This limit applies regardless of the tax-free allowance, meaning that after exceeding PLN 85,528, a further PLN 30,000 tax-free allowance can be applied – a total of over PLN 115,000 is tax-exempt.
What about entrepreneurs?
If you run a business, even if you're 18, 20, or 25 years old, unfortunately, this relief doesn't apply to you. Why? Because income from business activity is treated differently under the Personal Income Tax Act than income from an employment contract or contract of mandate.
The form of taxation does not matter
Regardless of whether you settle your taxes on a tax scale, a straight-line basis or use the lump sum tax, the youth tax relief does not apply to business activity.
What can you do?
If you own a business and are young, look for savings elsewhere, for example, by choosing the taxation method that best suits your needs and the income you generate.
Not sure which taxation method will be most beneficial for you? Contact our tax advisor who will help you choose the optimal strategy.
