Unfortunately, the case is not easy and is strongly related to legal provisions

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The Personal Income Tax Act states that a flat-rate income tax of 10% of the winnings or prizes is charged on winnings from competitions, games, mutual betting and bonus sales, as they constitute earned income (revenue).

The reservation to this provision is the provision on the exemption from income tax of the value of winnings that are transferred in competitions (and other mentioned ones) announced and organised by the mass media (press, radio, television, Internet), as well as related to the fields of science, culture, art, journalism and sports, and in the case of bonus sales, provided that the one-time value of these prizes does not exceed PLN 2,000 (in the case of bonus sales, the prize cannot additionally be received in connection with the non-agricultural business activity conducted by the winner and constitute his income from such activity).

To put it simply, in order to avoid the obligation to pay income tax on the prize poland rcs data , the competition must be both announced through the mass media (i.e. via the Internet, radio, press or television) and organised by the mass media (i.e. the entity organising it must belong to the institutions classified as mass media. That is, it must professionally deal with the transmission of content to an unspecified group of recipients via the press, radio, television or the Internet. For example, it will be the owner of an online newspaper, radio or television).

In addition, the winnings themselves cannot exceed the value of PLN 2,000.

If – as the organiser – you run a different business and are not part of the mass media, even if you announce the competition through the mass media, you will not benefit from tax exemption.

The exception will be a situation in which the competition you organize concerns science, art, culture, sports or journalism. In such a case, there will be no tax liability.

I hope that after reading this post you now know how to organize a legal contest on Facebook or Instagram.