Tax reform is one of the first elements of the Polish Order. Many changes came into force with the new year. One of them is the introduction of PIT-2. Who can count on this tax relief? We answer.
PIT-2, i.e. the second tax threshold. What changes await Poles?
PIT-2 is nothing more than an employee’s declaration for the purpose of calculating monthly advances on personal income tax. This application must be submitted to the employer so that he can withhold tax on his wages, taking into account the free amount. Thanks to this procedure, the net payment will be higher, but thus – such an employee will no longer be entitled to a tax refund after the PIT settlement – explains “Dziennik Gazeta Prawna”.
“Failure to submit PIT-2 after the Polish Lada will mean that we will get a lot less every month. Earning PLN 3,186 gross or more per month will receive a net salary of as much as PLN 425 less than they could earn, and they will feel the benefits of the reform only in 2023 when the tax office will pay them PLN 5,100 tax refund. Employees with lower incomes will not have to pay tax at all, “reads DGP.
It is worth adding that many employees have already submitted their PIT-2 in previous years, because it is usually submitted to the employer before the first salary payment. PIT-2 forms submitted before 2022 will also be valid in 2022, unless, of course, the facts described therein have changed.
In the PIT-2 statement, the employee declares that:
- does not receive an old-age or disability pension via the payer,
- does not receive income from membership in an agricultural production cooperative or other cooperative engaged in agricultural production,
- does not receive cash benefits from the Labor Fund or the Guaranteed Employee Benefits Fund,
- does not achieve income on which it is obliged to pay withholding tax, i.e. income: a) from business activity, b) from rent or lease.
If an employee meets any of the above-mentioned conditions, he / she does not submit a PIT-2 application.
We would like to remind you that the basic PIT tax rate is currently 17%. When we exceed the tax base threshold, the surplus must be paid 32 percent. The threshold is currently PLN 85,528, but the Polish Order will increase it to PLN 120,000. This will apply to all those settling according to the tax scale who achieve an income exceeding PLN 85,528 during the year.
Read more similar information on the Gazeta.pl homepage.
New tax breaks. What can be deducted from 2022?
Apart from PIT-2, the Polish Order introduces several new tax reliefs. Therefore, in 2022, employees will be able to submit to the employer:
- application for not applying the middle class tax relief,
- application for non-application of tax deductible costs,
- declaration of the taxpayer on meeting the conditions for using the relief for return,
- taxpayer’s statement on meeting the conditions for benefiting from the family 4+ tax relief,
- declaration of the taxpayer on meeting the conditions for benefiting from the relief for working pensioners.
According to government calculations, the changes related to the Polish Order are expected to gain about 18 million people and lose more than 2.5 million citizens.