Taxation of Incomes of Athletes from Professional Practice of Sports under the Polish Tax Law

Purpose: Authors’ motivation to take up the subject of taxation of professional athletes comes from the Polish tax law which stipulates various manners of taxing incomes of professional athletes on their sports activity - depending on what source of income they are classified under. These sources may include an employment relationship, activity performed personally or being self-employed (conducting an economic activity). Professional practice of sports may entail high earnings, which is why taxation of these earnings may translate into significant differences between due tax resulting from the application of a specific method of taxation. The research problem emerging from the above-mentioned circumstance involves establishing which form of taxation will be optimal for athletes-taxpayers depending on their earnings. Design/Methodology/Approach: To resolve the issue, relevant Polish regulations have been analysed by means of interpretation of applicable laws. Findings: The research results allowed authors to formulate a thesis according to which the due tax will be lowest where the athlete obtains income from a sports activity as part of his or her economic activity. Practical Implications: Impact on decisions of professional athletes in terms of legal optimisation of their personality under the tax law. Originality/value: This matter has not been a subject of scholarly research to date. The research effects will allow such organization of athletes’ activity that will make it possible for them to legally lower their taxes.