Child tax refund. What will change?
The child relief is one of those reliefs that were settled by many Poles each year. However, this will not be the case in 2022. The changes to the disadvantage are related to the introduction of the Polish Order
So far, people with the lowest income received a child tax refund of PLN 1,112, while for two children it was PLN 2,224, and for three children – PLN 3,336. It did not matter how much tax was paid. The money was also refunded when the tax did not cover the relief. The child allowance was related only to the amount of ZUS and health contributions paid. So if in the tax return it was higher or equal to the relief, the deduction was calculated in full.
What will the Polish Order change? People earning the lowest national salary will no longer be eligible for a child tax refund. The Polish Order introduces a tax exemption to the income of 30 thousand. PLN per year. The lowest earners will not have any withholding tax. Only social contributions will be taken into account.
And these would have to be equal to or greater than the child allowance. For those earning the lowest national income, this is impossible.
Child tax refund. The current billing is no longer valid
The current rules will cease to apply from the new year. Now, the least earners have the income tax of PLN 167 per month. They receive the refund along with the tax return.
EVERYTHING YOU NEED TO KNOW ABOUT THE FAMILY ULTIMATE
The Polish Order will therefore introduce apparent increases. From 2022, the poorest people will earn PLN 167 net a month more. But when the tax return is settled, they will not receive the full child tax credit because they will not meet all the conditions.