On 13 June 2022, the President signed amending legislation, called Polish Deal 2.0, relating to various tax matters, including a reduction in personal income tax rate from 17% to 12% for the PLN 120K income  bracket and abolition of the so-called middle class relief. Now the amending act awaits publication in the Journal of Laws.

On 9 June the Sejm processed Senate’s proposed changes to the law amending the Personal Income Tax Act. The lower chamber approved a number of senators’ change proposals, including those relating to:

  • joint returns with children – single parents will pay the tax at double the amount of tax payable on half of the single parent’s income;
  • health insurance contribution – individuals in business to which the flat-rate tax regime applies will be allowed to either deduct insurance contributions from income or add them to their tax-deductible costs for a total deduction of no more than PLN 8700 annually;
  • an increase from 1% to 1.5% in the percentage of tax that may be assigned to public benefit organisations.

The new PIT Act regulations will generally become effective on 1 July 2022. However, the amending law contains a number of transitional provisions according to which some regulations will apply to income earned already as of 1 January 2022.

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This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.