PIT for eldercare in Germany: foreign income, advance payments and corrections

One of the most common questions from caregivers working in Germany: which PIT form do I use for agency income, and what about advance tax payments? Most assume PIT-37 because they received a PIT-11. That's a mistake — one that often needs to be corrected.

Why PIT-36, not PIT-37

PIT-37 is for individuals who earn income exclusively from employment contracts, mandate contracts, pensions, or annuities. But if you run a sole proprietorship (JDG) — even if you work through a foreign agency — your care income is business income.

This means:

• PIT-36 — if you're on the tax scale (12% / 32%)
• PIT-36L — if you're on flat tax (19%)
• PIT-28 — if you're on lump sum (rate depends on service type)

Most new caregivers are on the tax scale (default at JDG registration), so PIT-36.

Income from Germany — where to tax it

Poland taxes its tax residents on worldwide income (unlimited tax obligation). If you live in Poland and are a tax resident there, your care income from Germany is reported in Poland.

But note: the Poland-Germany double taxation treaty (Art. 15) states that employment income earned in Germany may be taxed in Germany — but only if you stay there more than 183 days in a year or your employer is based there.

In practice, for caregivers working through agencies (like Promedica24):

• The German agency withholds advance income tax in Germany (Lohnsteuer)
• In Poland, you report this income in PIT-36
• You apply the proportional deduction method (Art. 30(1)(2) of the PIT Act) — tax paid in Germany is deducted from Polish tax, but not more than the Polish tax proportionally attributable to that income

What you receive from the agency

Promedica24 (and similar agencies) sends annually:

• PIT-11 — income and withheld advance payments (Polish side)
• PIT/B — attachment with foreign income and withheld taxes (for the tax office)

Based on these documents, you file PIT-36 with attachment PIT/ZG (foreign income).

Advance payments — how to report them

This is the part that causes the most problems. Advance income tax payments withheld by the agency must be reported in Part L of PIT-36 — "Advance payments due for months following the month in which income was earned."

Real-world example:

A caregiver works through Promedica24. In 2025, the following advances were withheld:

• October: 173.00 PLN
• November: 74.00 PLN
• December: 639.00 PLN
• Total: 886.00 PLN

These amounts go in Part L of PIT-36, in the appropriate months. This reduces the final tax due (or increases the refund).

PIT-36 correction — when and why

The most common reason for a correction: filing PIT-37 instead of PIT-36. If someone received a PIT-11 from the agency and filed PIT-37, the tax office may not catch it immediately — but a correction is needed because:

1. PIT-37 doesn't account for business expenses (KPiR)
2. PIT-37 doesn't allow deduction of foreign tax paid
3. PIT-37 has no PIT/ZG attachment for foreign income

You file the correction on PIT-36, marking "Correction of return" and entering both the original and corrected income figures. Attach PIT/ZG and PIT/B.

There's no penalty for a voluntary correction before the tax office contacts you — quite the opposite, it's encouraged.

Expenses — what you can deduct

As a JDG on the tax scale, you can deduct business expenses:

• Travel to care assignments — fuel, tickets (with documentation)
• Phone — in proportion of business use
• Care supplies — if you buy your own
• Business liability insurance
• Training — first aid, caregiving courses
• Accounting

Important: expenses must be related to earning income and documented (invoices, receipts with NIP).

Practical checklist

1. Form: PIT-36 (not PIT-37) if you run a JDG
2. Attachments: PIT/ZG (foreign income) + PIT/B (from agency)
3. Advance payments: Part L of PIT-36, enter amounts from PIT-11 month by month
4. Foreign tax: proportional deduction (Art. 30(1)(2))
5. Expenses: KPiR — anything related to care work
6. Correction: if you filed PIT-37 instead of PIT-36 — correct voluntarily

Legal basis

Polish PIT Act — Dz.U. 2025 poz. 163 (consolidated):

• Art. 9(1) — business income
• Art. 30(1)(2) — proportional deduction of foreign tax
• Art. 45(1) — PIT-36 return

Poland-Germany Double Taxation Treaty — Art. 15 (employment income).

Individual interpretations — The Director of KIS confirms that a caregiver's income through a foreign agency is business income (PIT-36), not mandate contract income (PIT-37). Current interpretations in EUREKA (search: "opieka Niemcy PIT działalność").

Note: Individual interpretations protect only the taxpayer who requested them — they are not universally binding.

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I run accounting for caregivers working in Germany. If you need a PIT-36 correction or aren't sure if you have this right — get in touch. First month free.