Income tax from employees in the Małopolska Region in 2019
We present the two-part report “Income tax from employees in the Małopolska Region in 2019”.
The report is based on the data originating in 1 636.3 thousand PIT-11 documents made available by the chamber of the fiscal administration in Kraków. The analysis contains information about taxpayers who obtained income from service relationship, employment relationship, cooperative employment relationship in 2018. Part one covers general taxpayer issues, including information on the structure of the economy based on taxpayers’ collections, their numbers, headquarters, mobility issues, as well as analysis of activities. The second part of the report is the analysis of information on taxpayers – individuals residing in Małopolska Region, parted by „powiaty” (administration’s units in the structure of region).
Less tax information
The year 2019 brought a halt to the rapid increase in the number of PIT-11 information issued, and even a slight decrease compared to the previous year. They are responsible for their decline, among others progressive decline in the working age population in Małopolska for several years, a growing share of non-tax resident foreigners, trade restrictions, a reduction in the widespread employment of students over the weekend in previous years, stabilization of the economy, also resulting in reduced staff turnover, and thus fewer tax information issued.
Only in three „powiaty” i.e. in Limanowski, Miechów and Wieliczka, the number of PIT-11 tax information issued increased in 2019 compared to the previous year. The deepest decline was recorded in the city of Nowy Sącz as well as Oświęcim and Olkusz. In communal sections, an increase in the number of issued PIT-11 documents was noted in 59 cases. The leading in this case is Igołomia-Wawrzeńczyce, in which a 15.8% increase was recorded. Chart 1. Number of information on earned income transferred to taxpayers residing in Małopolska Region in 2013-2019.
Chart 1. Number of information on earned income transferred to taxpayers residing in Małopolska in 2013-2019
Małopolska is a region based on services
This is clearly seen in the set of income tax payers. The most numerous group (36.7% of taxpayers from Małopolska) are taxpayers employed in the so-called “Other services”, including education, health care, social assistance, administration, education, etc. The second largest group (30.5% of Małopolska taxpayers) are services related to trade, transport, warehouse management, gastronomy, accommodation, information and communication. Industry is the third, not only as manufacturing activity, but also as mining, energy production and distribution – 20.5% of taxpayers. Next are: construction (8.2% of tax information issued), financial and insurance activities together with real estate market services – 3.6%, agriculture and related services – 0.6%.
Locally, the economic structure corresponds to the workplaces located in this area. Thus, for example, in the Brzeg, Dąbrowa, Miechów and Proszowice „powiaty”, enterprises included in the section ‘Agriculture, forestry, hunting and fishing’ dominate (the percentage of PIT-11 issued from companies was almost the same and amounted to 0.9%). Industry is the vast domain of the Oświęcim – 37.2% of tax information for taxpayers issued by industrial enterprises (including mines, power plants, waterworks, etc.). The next places are „powiaty” of Western Małopolska: Wadowicki – 33.9% and Olkusz – 33.3%.
The main specialization of Brzesko (16.8%), Limanowa (16.3%) and Nowy Sącz (14.7%) is architecture. In this case the largest quantitative decline in PIT-11 information was recorded. The “trade, repair, transport, storage, accommodation, gastronomy, information and communication” group is characteristic for the Tatrzański „powiat” – 42.7% and Miechowski „powiat” – 35.3%. Finance and insurance along with real estate services is the domain of Kraków – 5.3%, and “other services” are concentrated in cities with „powiat” rights, with Kraków’s leading role – 44.0%.
Chart 2. Number of information on earned income transferred to taxpayers residing in Małopolska by groups of „PKD” sections
Work where you live, but be mobile
The labor market in Małopolska is shaped by both local companies having their headquarters here as well as their representative offices, branches, factories and shops, but also by employing commuting at their premises. This usually applies to border areas in neighboring regions, guaranteeing an acceptable travel time. In 2018, about 2/3 of taxpayers residing in Małopolska provided work in the place of residence. This percentage is quite stable and slightly varies every year. In powiaty, the value is much more diverse, ranging from 42.6% in the Wadowice poviat, to 91.3% in the case of Kraków.
The gradually increasing share of companies located in Małopolska in the issued PIT-11 tax information for residents of the region is noticeable. In 2015-2019, this share increased by over 2 percentage points, from 78.1% to 80.2%. In different regions, it looks different, for example, in Oświęcim powiat payers from Małopolska issued 55.05% of all PIT-11 tax information, in Chrzanów powiat with a value of 66.1%, while in Myślenice powiat the value was 89.1%, and in Bochnia – 88.5%.
Lower values of the indicator in powiaty of the western part of the Małopolska are dictated by the strong economic impact of Śląsk Region (Silesia), as well as the location in Małopolska of branches or plants of companies from the Śląsk (e.g. mines) generating a large labor market. On the other hand, powiaty on the eastern side of the region have the exact opposite problem – the lack of adequate supply of jobs forces them to migrate – either to the capital of powiat or even further.
The percentage share in the labor market of payers from other regions recorded a more than 1% share:
- Mazowsze – 8.5%
- Śląsk – 5.1%
- Wielkopolska – 1.5%
- Dolny Śląsk – 1.1%
- Podkarpacie – 1.1%
With the exception of Wielkopolska, the share of payers from these regions in the number of tax information issued to taxpayers from Małopolska in the period 2015-2019 decreased.
Map 1. Percentage of PIT-11 tax information issued by payers based in Małopolska Region
A source of charts and a map: own study.
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