Tax Treaty Case Law around the Globe 2016

S. 61Chapter 5 Poland: Residence of Individuals

Karolina Tetłak

5.1. Introduction

This chapter will discuss the decision of the Supreme Administrative Court of 15 May 2015, II FSK 964/13. The issue in this case was the place of residence of an individual for tax purposes. The Court’s decision considered how the tax authorities should establish whether the taxpayer had his centre of vital interests in Poland and how to calculate the duration of his stay in Poland.

Under article 3(1) of the Natural Persons’ Income Tax Act of 26 July 1991 (NPITA), natural persons, if they have a place of residence in the territory of the Republic of Poland, are subject to tax liability on all of their income, regardless of the location of the source of income (unlimited tax liability). Pursuant to article 3(1a) of the NPITA, natural persons are considered to have a place of residence in Poland if (i) they have the centre of personal or economic interests in Poland (centre of vital interests) or (ii) are present in the territory of the Republic of Poland for more than 183 days in a fiscal year.

Article 3(2a) of the NPITA stipulates that natural persons, if they do not have a place of residence in the territory ...