The Polish Order does not affect women and men who take parental leave, the leave is free of charge, so there is no tax obligation.
In the case of people on maternity leave / benefits, the income of the above-mentioned persons, similarly to other taxpayers, is the tax-free amount, which currently amounts to PLN 425 per month (5,100 annually), which consequently constitutes an exemption from taxation of income not exceeding PLN 30,000. in the tax year.
Maternity allowance and sickness allowance, even if they are paid by the workplace, do not constitute income from work, and are the so-called other income. In this case, no middle class tax credit can be applied.
How will the Polish Order affect joint settlements of spouses? What if one spouse is eligible for middle class relief and the other is not?
If the spouses choose a joint tax return (if the spouses meet the conditions for submitting such a joint return), each of the spouses may deduct the allowance for employees or taxpayers who generate income from non-agricultural business activity from half of the total total income obtained by the spouses in the tax year, where such the entitlement also applies when one of the spouses does not earn any income.
So if one of the spouses reaches revenues of 150 thousand. PLN (he will not use the tax on his own), and his spouse has revenues of PLN 50 thousand. PLN (they will not take advantage of the tax relief on their own), but if they join forces and use the indicated option, they can settle the relief on half of the total revenues, i.e. each of them can count a discount from the amount of PLN 100,000 PLN (150 thousand + 50 thousand = 200 thousand).
In such a case, the relief applies if half of the total revenue is between PLN 68,412 and PLN 133,692.
However, it should be emphasized that even in the case of spouses exercising the right to joint settlement, the reliefs should be taken into account separately by each of the spouses and deducted from their own income in the first place. Only in the next step, in the case of a joint tax return, the income is combined and the tax is calculated in the double amount from half of the sum of these income.
This means that if one of the spouses does not earn any income, the allowance (the amount of which can be counted from half of the total income) will be deducted from his income only by the spouse who actually generates such income.
Not all spouses will be able to benefit from this option of calculating the amount of the allowance for the middle class. It is an option, not an obligation.
If, for example, one of the spouses reaches revenues of 200,000 PLN (he will not benefit from the relief himself), and his spouse has revenues of PLN 100,000. PLN (they have the right to a discount), it is not profitable for them to use the option of relief counted from half of the sum of total revenues, because these will amount to 150 thousand. (200,000 + 100,000 = 300,000), and then none of them will benefit from the tax relief.
You can find more questions and answers in connection with the Polish Order and other areas here.
The answers to the questions were developed by:
Monika Smulewicz, Partner, Payroll and HR Outsourcing, Grant Thornton
Małgorzata Samborska, Partner, Tax Advisory, Grant Thornton
Agnieszka Wachowicz, Manager, Payroll and HR Outsourcing, Grant Thornton