Tax changes from July 1st 2022

On Thursday, June 9th, changes to the Polish Ład were passed, most of which are to enter into force on July 1st. Here are the most important changes that await us:

• Lower PIT tax

The PIT tax rate will drop from 17 to 12%. Employees working full-time, civil law contracts, pensioners and entrepreneurs paying with the tax scale will start paying the tax office less, which will translate into higher transfers. The reduction is to apply retroactively from January 1st. In the spring of 2023, a significant part of taxpayers will receive higher tax refunds than before – for six months they gave the state tax at the level of 17%, and in the settlement the tax due will be 12%.

• Removal of the middle class tax relief

• Lower tax reducing amount (PIT-2 delay)

On the basis of PIT-2, the employer may reduce the tax due on the employee’s salary by 1/12 of the amount reducing the tax on a monthly basis. The initial plans assumed that from July 1 it would be possible to submit the form to several employers (up to three) with information on the division of the amount reducing the tax. Ultimately, this solution will not enter into force until January 1st, 2023. In the case of one employer, the amount will be 300 PLN per month, and for two, 150. In the case of three, it will be 100 PLN for each. It will be possible to divide PIT-2 in the case of a working pensioner. In such a situation, part of the amount reducing the tax will be taken into account by the Social Insurance Institution, and part by the employer.

• Contribution benefit for entrepreneurs

It is planned to give a large group of entrepreneurs the opportunity to reduce the tax by a part of the paid health insurance. Entrepreneurs paying a flat tax will be able to reduce the tax base by paid health contributions – their limit will be 8,700 PLN. Lump sums will deduct 50% of paid contributions from their income, and taxpayers paying with a tax card will reduce the tax by 19% of paid contributions.