Polish Deal: Sejm Adopted Amended Legislation

by Maria Wośkowiak

16 May 2022

The lower chamber of Polish parliament (Sejm) adopted a statute amending the Personal Income Tax Act and certain other acts on 12 May 2022. This bill is yet another modification of the so-called Polish Deal legislation package. It will now go to the Senate.

Above all, the statute reduces the PIT rate from 17% to 12% and keeps the tax-free amount at 30 thousand zloty. Sole proprietors will be allowed to deduct a part of the paid health insurance contributions from the taxable base. Those who have opted for flat-rate (linear) tax or flat tax on recorded income with no deductions will be allowed to go back to tax brackets. The middle class relief and the temporary flat tax on recorded income will be revoked.

Starting from 01 January 2023, the tax-free amount may be deducted by up to three withholders and applied on accounts off-limits so far, e.g. contracts of mandate.

The relief for monuments will also be modified – only renovations, maintenance and repairs approved by the historic preservation officer, will be eligible.

The bill is scheduled to become law on 01 July 2022, so it is good to get ready for the changes in advance.
If you have any questions about details of the new regulations, you are welcome to contact Rödl & Partner experts.