Dr Tomasz Tokarz recommends private tutoring to enthusiasts. He believes that the price of tutoring should depend on the teacher’s level, effectiveness and professionalism. However, he considers it unethical for a teacher to tutor their own students. He also emphasizes the role of parents in making private tutoring so widespread.

Can Tomasz Tokarz imagine education in Poland without private tutoring? Listen to the interview.

Dr Tomasz Tokarz graduated from the Faculty of Humanities and Education at the University of Wrocław. In 2005, he received his doctorate. His interests focus on alternative education, educational innovation, new technologies, interpersonal communication, and personal development and relationships. He is the author of numerous articles, published in journals and on online portals, and the author or editor of several books. His latest book has the significant title “School Should Be for the Student”. Tomasz Tokarz conducts training for teachers, principals and parents: training proposals. Tomasz Tokarz co-founded the EDUTANK Foundation and runs the blog: INNOVATIVE EDUCATION.

Taxation of private tutoring under the Polish Deal

Thanks to the courtesy of the Tax Office in Bolesławiec, we present up-to-date information on the taxation of income from private tutoring.

The Head of the Tax Office in Bolesławiec reminds us that people who, in their own name, irrespective of the outcome, provide private tutoring in an organized and continuous manner are required to register the fact that they conduct non-agricultural business activity with the competent authority.

Such a taxpayer may choose from three forms of taxation: tax paid under general rules, flat-rate tax, or lump-sum tax on recorded revenue.

General rules (tax scale)

For tax paid under general rules, the tax base is income understood as the difference between revenue and the costs of obtaining that revenue.
When this form of taxation is selected, the tax scale has two rates: 17% and 32%.
The Polish Deal raises the tax-free allowance to as much as PLN 30,000. In addition, the amount of the first tax threshold increases to PLN 120,000.

Flat-rate tax

For tax paid in the form of flat-rate tax, the tax base is income understood as the difference between revenue and the costs of obtaining that revenue.
The flat-rate tax is 19%, regardless of the amount of income.
When choosing this form of taxation, a person providing private tutoring cannot benefit from the tax-free allowance or other tax reliefs.

Lump-sum tax on recorded revenue

People providing private tutoring who choose this form of settlement pay a lump-sum tax on revenue.
The Polish Deal introduced a lump-sum rate of 8.5% on revenue earned from educational services consisting of hourly lessons. This form of settlement will be particularly advantageous for people who will not incur significant expenses related to their business activity.

People providing private tutoring who have not conducted business activity during the previous 60 months may choose unregistered activity. In this case, monthly revenue from private tutoring may not exceed half the minimum gross wage in any month.

Providing private tutoring as unregistered activity is highly advantageous because an individual:

  • does not have to report the activity in the register of entrepreneurs (CEIDG), to the tax office or to Statistics Poland (GUS)
  • does not have to pay social insurance contributions to ZUS or file ZUS declarations,
  • does not have to pay monthly (or quarterly) tax advances,
  • does not have to maintain formal tax records. They only need to record revenue, including the date on which it was earned. This may be done in any form.

Revenue from private tutoring earned as part of unregistered activity is settled independently in the annual tax return. The tax due will be 17% or 32%, depending on the amount of income earned in the tax year and taxed under the general rules, i.e. according to the applicable tax scale.

If revenue from unregistered activity exceeds the threshold of 50% of the minimum wage in a given month, it becomes business activity from the day on which the limit is exceeded. In that case, an application for registration must be submitted to CEIDG within 7 days.

It is worth remembering that income from private tutoring is not covered by the PIT exemption for young people, even if the tutor is under 26. Link to the information brochure on unregistered activity: biznes.gov.pl

If you have any questions, please contact the staff of the Tax Office in Bolesławiec: dolnoslaskie.kas.gov.pl/urzad-skarbowy-w-boleslawcu/kontakt/telefony