Although Tokarczuk’s award is a huge distinction, from the point of view of the law, she is a PIT taxpayer with a residential tax living in Lower Silesia in Poland who has received an income of approximately PLN 3.5 million.
The prize was given in Sweden, but according to the Polish-Swedish tax agreement, such an income should still be taxed in Poland.
Such a huge sum usually means the inclusion of PIT at a 32 percent rate, as well as the so called “solidarity tribute.” The latter is a new 4 percent tax which is charged for income exceeding PLN 1 million per annum.
If the Nobel Prize in Literature is considered “literary activity conducted personally”, according to the PIT bill, then such an income can be taxed 20 percent. Given such data, the PIT would amount to PLN 883,800 and including the PLN 72,000 solidarity tribute, the total would be PLN 955,800.
