Polish Deal in repair. Further changes to the tax system

by Monika Spotowska

25 March 2022

The Ministry of Finance published on 24 March 2022 a bill amending the Act on Personal Income Tax and certain other acts. It follows from the bill that the PIT rate will be reduced from 17% to 12% for taxpayers using tax brackets. The middle class relief and the monuments relief are to be abolished. The health insurance contribution will also be affected by the changes.
 
The most important changes include:

• reduction in the PIT rate from 17% to 12%;
• possibility to reduce the taxable base up to a certain limit by the health insurance contributions paid, for enterprises using flat-rate tax, flat tax on recorded income or tax card;
• abolished middle class relief, monuments relief and flat tax on untaxed income;
• new more favourable rules of applying personal allowance when calculating PIT advances for multi-employed persons;
• single parents may again account for income tax jointly with their child;
• tax preferences for parents, guardians and children;
• extended deadlines for submitting JPK_PIT and CIT (SAF-T) until 2025.

Additionally, the Ministry plans to waive the double obligation to calculate advances for 2022. A uniform system for calculating advances will apply.

The above solutions are scheduled to take effect as from 1 July 2022.

If you have any questions about the proposed changes, you are welcome to contact Rödl & Partner experts.