“Zero PIT for young people” versus contracts of mandate with the transfer of copyright
27 April 2021
27 April 2021
Contracts of mandate concluded with persons who are under 26 years of age are a popular form of cooperation due to the tax exemption under Article 21 (1)(148) of the PIT Act (the so-called zero PIT for young people).
The performance of the contract may result in the creation of works within the meaning of copyright law. Therefore, the parties to the contract apply provisions, which regulate the transfer by the contractor to the principal of the author’s economic rights to works created on the basis of, during or in connection with the performance of the contract.
In the latest tax interpretation concerning contractors before the age of 26 who receive revenue from author’s economic rights (sign.: 0115-KDIT2.4011.836.2020.1.MM), the director of the National Fiscal Information pointed out that the classification to a given source of revenue is determined by the content of a given agreement, and not by the form of the legal relationship (contract for specific task or contract of mandate). Consequently, if the remuneration specified in the contract is in exchange for a transfer of author’s economic rights, such revenue is deemed to be revenue from proprietary copyrights. If the tax authority classifies a contract of mandate with the transfer of author’s economic rights as a source of revenue ‘proprietary rights’, the remuneration received by the employee is not exempted from PIT (the so-called zero PIT for young people cannot be applied), but the principal should calculate advance payments for income tax according to general rules.
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