Higher taxes in 2022. Companies score the worst changes

What will 2022 bring? The government provided everyone with the Polish Deal and several other major changes. They were supposed to make life easier for ordinary citizens and make them have more money. However, when we ask a citizen-entrepreneur or manager in a company about the upcoming changes, it turns out that lack of enthusiasm.

Just before the end of 2021, we turned to representatives of several important industries with two questions:

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  • How will tax changes introduced by legislators affect your business in 2022?
  • Will the overall legislative changes introduced for business for the next year have a positive or negative impact on the investment climate in Poland?

See also: A record-breaking Christmas Eve. Seniors about Christmas shopping and the need to tighten their belts

Complaints definitely overshadowed the praise. They mainly concern health insurance contributions, excise tax increases and the introduction of a minimum income tax. The IT industry, which will largely benefit from the new tax exemptions, also criticizes the government, e.g. for the way and pace of introducing changes.

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Higher developer costs

From 2022, there will be a number of legislative changes. Including health insurance contributions will no longer be tax-deductible. This means that architects, engineers and other independent specialists whose services we use will demand more for their work – notes Konrad Płochocki, vice president of the Polish Association of Developers.

He adds that developers will also have to pay from 1 July contribution to the Development Guarantee Fund. It will also increase operating costs. – Unfortunately, all of these Legislative changes will have a negative impact on housing prices in Poland. We forecast that the prices of residential premises in 2022 will increase by another 7 percent. – forecasts the vice president of PZFD.

Is tax relief in the IT industry not enough?

The Polish Order contains regulations that deteriorate the situation of employees and employersimposing additional tax burdens on them – says prof. Michał Jackowski, lawyer and tax advisor.

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As a member of the board of ITCorner (an association of technology companies from all over Poland), he notes that the government was much friendlier towards the IT industry. Jackowski admits that the reduced lump-sum tax rates combined with a flat-rate health fee, numerous tax breaks or the possibility of combining research and development relief with IP Box [preferencyjne opodatkowanie dochodów uzyskiwanych ze sprzedaży produktów lub usług wytwarzanych na podstawie prawa własności intelektualnej – przyp. red.] will reduce the total tax burden in 2022.

Even so, the industry spares no harsh words. Indicates that almost every country attracts developers with more favorable tax rates and rules. Regulations are much more favorable than in Poland in Portugal, Romania, Georgia or Ukraine.

– Polish rates may not protect the Polish market against the outflow of specialists abroad – warns Jackowski. He adds that the climate around legal changes in the IT industry is not goodand the pace of change, very short adjustment periods and complex regulations cause great confusion for companies.

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– This affects the overall investment climate in the new technology industry. More and more companies are thinking about moving technology and activities to more regulatory stable places – the member comments on the situation ITCorner.

The excise tax goes up

– The increase in excise duty on alcohol from January 2022 is obvious will be reflected in the price that the consumer will pay – indicates Ryszard Woronowicz from the Polish Spirits Industry Employers’ Association (ZP PPS).

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He emphasizes that the excise tax increase will not be limited only to 2022. It will grow at a rate of 5 percent. annually for five years. He warns you that soon a bottle of vodka can cost up to PLN 50. This will hit the wallets and finances of smaller producers who are already balancing on the verge of profitability.

ZP PPS also expects a strong one the return of the alcohol black market. She notes that today you can buy a liter of spirit at the bazaar for PLN 25. That’s roughly the price of half a liter of vodka sold in stores.

The tobacco industry is in a similar mood. British American Tobacco notes that an increase in the minimum amount of excise duty on traditional cigarettes from 100 to 105 percent. it will only hit less affluent consumers. He suggests that the cheapest cigarettes will have to increase by PLN 1 this year, and in a few years their price will exceed PLN 20, which will push the least earners into the shadow economy.

Minimum income tax

The alarm is sounded by the Polish Chamber of Commerce and experts introduced in the new year minimum income tax define one of the most controversial changes in the Polish governance. From January 1, companies that declare a small profit (not more than 1% of income) or show losses will be additionally taxed.

More about the minimum income tax and industry criticism HERE.

– Despite the government’s announcements, this tax will affect not only international corporations, but also Polish entrepreneurs, including small and medium-sized ones. They will be charged with an additional tax in the name of fighting foreign companies’ abuses – emphasizes the vice-president of PIH Maciej Ptaszyński.

They may be affected, inter alia, electronics wholesalers and distributors, grocery stores and drug retailers. PIH accuses the government of punishing less earners with this taxinstead of applying the principle that higher earners should be burdened with greater burdens on behalf of the state.

– The investment attractiveness of a given country always depends on many factors. The most important criteria are without a doubt legal and fiscal predictability and stability as well as fiscal facilitation for investors – emphasizes the vice-president Ptaszyński.

It indicates that numerous new burdens do not contribute to the increase of Poland’s investment attractiveness.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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