Do i need to pay tax in Poland on my DA allowance?

(Anonymous) #1

Hi Anil,
Can you tell me the tax implications in my below scenario :-
I am working for Indian company and deputed to our Poland factory for two years 2018 and 2019.

I stay in Poland alone and my wife and kids lives in India.

Usually if i stay less than 183 days I don’t need to pay any Tax but this year and next year I’ll stay approx 240 days in poland and rest days in India.

I am getting my Indian salary in India regularly and my company also deduct applicable tax each month from my salary.
while in Poland I receive 160 PLN as Diem allowance.

Now, this 160PLN *30=4800 PLN i get in cash from not through bank from our polish company. however I sign some voucher that i have received it. may be Polish company shows in their book about this expenditure.

Now, whatever unspent money left with me, I convert it from PLN to EURO and then take to India in cash form and then convert there in Black to INR ( I don’t deposit this money in any bank) and spend in India in cash for my other expenditures.

my question is in my case do i need to pay tax in Poland on my DA allowance?
until now I haven’t paid any tax in Poland. this year i have completed so far 150 days till now.

according to below link of KPMG per diem allowance for non resident is non taxable.

For Poland:

Please advice in this matter.

Bring back per diem in cash to India to save tax?
(Anil Gupta) #2

The Poland tax, if any, should be withheld by Polish company before paying you any money.
I am not an expert on Poland Income tax laws but the KOMG link that you have shared throws some light on it.

As I understand, you are not required to do anything on your part.