We are currently working on the ordinance changing the advance collection technique, said Deputy Finance Minister Piotr Patkowski. The purpose of the regulation is to resolve doubts that have arisen when calculating income tax advances. Some employees – teachers and policemen – in January received lower salaries than before. Patkowski noted that the regulation will be published next week at the latest.
The Polish Deal is a major reform and some ambiguities may emerge at the beginning. We are aware that there are such ambiguities and inaccuracies and we want to solve them as soon as possible so that people who benefit from the Polish Lada can see these benefits in January and February – said the deputy minister.
On Wednesday, the finance ministry announced that a regulation will be prepared, which will concern the technique of collecting advance payments. Failure to deduct the free amount and failure to calculate the middle class relief when calculating advances for income tax means that current salaries of taxpayers may be lower.
We want to structure the regulations in such a way as to reduce this risk. However, the regulation will focus on improving the technique of tax collection so that all taxpayers can see the operation of the Polish Order already with the monthly payment of salaries, and not only with the settlement for the entire year. – said Patkowski. He noted that submitting PIT-2 in several workplaces may result in the necessity to pay additional tax with the annual settlement.
The deputy minister added that the Ministry of Finance was conducting an extensive training and information campaign on the principles introduced by the Polish Order. He explained that it concerns both information published on the website of the Ministry of Finance and the portal wiecejwportfelach.gov.plas well as training for accountants, tax advisers and people interested in new tax solutions, including entrepreneurs.
Yesterday, the Ministry of National Education talked to curators about the principles of the Polish Order, so if teachers still have doubts, they can obtain information from curators. Uniformed services received similarly appropriate explanations he pointed.
He also noted that the ministry is working on ensuring that complete information on the website on the application of middle class preferences.
Taxpayers and tax advisers indicated that they have doubts about how relief works for the middle class when the maximum threshold is exceeded (i.e. PLN 133,692 per year). There have been suggestions that after exceeding this level, the tax relief will “reset”, so the taxpayer will have to return the amounts that have been deducted by employers throughout the year.
Employees whose annual income is between PLN 68,412 and PLN 133,692 benefit from the allowance for the middle class. However, the employer applies this relief on a monthly basis, i.e. if the employee’s monthly income ranges from PLN 5,701 to PLN 11,141. If someone has received an award or a bonus, their annual income changes as well, and so the value of the allowance or the right to apply it also changes. This must be included in the annual billing. This does not mean, however, that someone is losing on the Polish Lada or that it is not profitable to receive a bonus explained Patkowski.
He also reminded that even if someone does not use the free quota and the middle class relief for current payments, it does not mean that he is losing money obtained thanks to the Polish Deal.
Nothing is lost and nothing is lost – emphasized the deputy finance minister.
On January 1, the tax part of the Polish Order entered into force. One of the most important changes introduced by this program is the increase of the free amount to PLN 30,000. PLN and the income threshold up to 120 thousand. zloty.
At the same time, the tax deduction for a part (7.75%) of the health insurance contribution, amounting to 9%, is disappearing.. This is to compensate for the so-called relief for the middle class, i.e. people earning from 5,000 a month 701 PLN up to 11 thousand. PLN 141 gross.