Exemption from income tax in respect of amounts received non-life insurance.
The role of the compensation is to compensate the victim suffered damage and does not constitute the provision, which aims to enrich the taxpayer. In addition to the tax exemption on the payment of compensation contained in Art. 21 paragraph 1 item 3-3d, the legislature has also entered the relevant exemption in Art. Paragraph 21. 1 point 4 of the Income Tax Act from individuals. According to the contents of this provision, a tax free income for amounts received in respect of non-life insurance, with the exception of:
a) compensation for damage to assets related to the business activity or conduct special branches of agricultural production, the proceeds of which are taxed in accordance with Art. Paragraph 27. 1 and Art. 30c,
b) income referred to in Art. Paragraph 24. 15th
By the contract of insurance the insurer undertakes, in respect of the activities of his business, to meet a particular benefit in the event of an accident specified in the contract and the insurer agrees to pay a premium (Article 805 of the Civil Code). Insurance business is divided into non-life insurance and personal. The criteria for allocation of insurance is indicated the scope of the insurance coverage. In the non-life insurance can be any financial interest that is not contrary to the law and can be assessed in monetary terms (Article 821 of the Civil Code). Thus, in the non-life insurance is subject to the protection of property or liability. However, the subject of protection of personal insurance in particular the personal man, the life and health (Article 829 of the Civil Code). In the event of an incident resulting in the creation of the insured event, the insurer has a duty to comply with the provision in particular by payment: property insurance - specific compensation for the damage, the personal insurance - agreed sum of money, annuity or other benefit.
In summary, therefore, receive compensation and other benefits arising out of personal or property (including under the compulsory third party insurance motor vehicle owner), regardless of whether they were granted at the discretion of the insurer's settlement out of court or judicial review, are exempt from income tax on natural persons the basis of Art. Paragraph 21. 1 point 4 of the Income Tax Act from individuals. Exceptions to this rule are the compensation for damage to assets related to its business activities or conduct special branches of agricultural production, whose incomes are taxed in accordance with Art. Paragraph 27. 1 (general, the rate of 18%, 32%) or Art. 30c (19% flat tax). Sacking is not subject to the investment income of the insurance premium in respect of the insurance contract concluded under the provisions of the insurance business for insurance-related capital funds.
There are interpretations indicate that for damages in tort arising under a liability insurance the perpetrator's use of the standards in art. 21 paragraph 1 item 3 3d act, but in the assessment of the Insurance Ombudsman Bureau, despite these doubts about the hypothesis of individual legal norms contained in these regulations resulting in particular from a number of amendments to the Law on income tax from natural persons for compensation under the compulsory insurance (including compulsory civil liability insurance of vehicle owners), regardless of whether they have been granted on the basis of the decision of the insurer, extra-judicial or judicial settlement, indemnification shall be exempt from income tax on individuals on the basis of Art. Paragraph 21. 1 point 4 of the Income Tax Act from individuals. This interpretation is also confirmed in the individual interpretations of the tax - the Boards of Directors of the Treasury, which can be found on the website of the Ministry of Finance on taxes - interpretations and judgments - General interpretations / Individual http://sip.mf.gov.pl/sip/index .
It should be also noted that pursuant to art. 14b of the Act of 29 August 1997, the Tax Code (teks Dz. Laws of 2005 No. 8, pos. 60, as amended.) The Minister responsible for public finance, at the written request of the person concerned, issue in the individual case, written interpretation of tax law (individual interpretation). In case of doubt, therefore, always apply to the competent for the place of residence of the taxpayer Dyrektor (Warsaw, Poznan, Katowice, Bydgoszcz, Lodz) for a preliminary ruling on the interpretation of the individual official form ORD-IN.
