Poland to cut PIT rate to 12 pct from 17 pct from July 1
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Loading... - Blake Thompson
- 28 Mar 2022
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The Ministry of Finance has proposed to lower the Personal Income Tax (PIT) rate from 17 to 12 percent for non-flat rate tax payers, from 1 July, 2022.
The tax threshold of PLN 120,000 (EUR 25,313) and the tax-free allowance of PLN 30,000 (EUR 6,328) are to remain unchanged, according to the draft law presented by the ministry on Thursday.
The recently introduced tax relief for the middle class will be abolished and 19-percent flat-rate tax payers will be able to exclude healthcare premiums from their tax base.
The annual cost of the proposed tax changes has been estimated at PLN 15 billion.
"If these measures are well received, we want to implement them from 1 July," Prime Minister Mateusz Morawiecki told a Thursday press conference.
According to Polish law, if tax changes are beneficial to tax payers they can be implemented at any time. The changes the finance ministry have submitted for consultations will enter into force from 2023, but will apply retroactively from July 1, 2022.
According to the ministry, nearly 13 million taxpayers will benefit from the proposal, compared to the current situation. Read More…
