The Prime Minister announced further changes in PIT. It was suggested that the new rules would enter into force already on 1 July 2022.

Some of the most important of these proposals are outlined below:

  • the PIT rate to go down from 17% to 12% within the first income bracket (up to PLN 120K), including for businesses;
  • health insurance contributions to again become deductible from income up to a certain limit – for businesses with single-rate taxation the limit will be PLN 8.7K, for taxpayers with flat-rate taxation the limit will be 50% of the contributions paid, while persons paying sliding-scale tax will probably not be able to use the deduction;
  • the middle class relief to be scrapped but with a guaranteed option for taxpayers to be able to apply it in their annual return if they think it is the better option;
  • the relief for historical monuments to be scrapped;
  • the equalization relief to be scrapped;
  • persons with several sources of income from services or work to be able to have up to three of their employers apply the tax-free amount when calculating their advance tax payments (with the tax being reduced by PLN 300 for one contract, by PLN 150 for two contracts and PLN 100 for three contracts);
  • no duty to compute advance tax payments in 2022 according to both 2021 rules and 2022  rules in parallel;
  • return of joint taxation option for a single parent and their child (instead of the PLN 1500 relief introduced as of 2022), with the PLN 30K tax-free amount being available for each of the parent and the child separately;
  • an increase to PLN 16,061.28 of the child earnings cap beyond which the parents lose their tax privileges;
  • time to submit JPK_CIT and JPK_PIT to be extended until 2025.

For the related official communique of the Finance Ministry (in Polish), see: https://www.gov.pl/web/finanse/pit-nizszy-o-5-punktow-procentowych-zmiany-w-systemie-podatkowym

Also, the Government Legislation Centre should soon publish a draft of the amending law which will be in consultations until 2 April 2022.

If thiss issue pertains to your business and you are interested in our assistance, please contact us.

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