Polish £ ad. The tax act was published, changes amount to 140 pages. “The biggest revolution in 30 years”

The act amending the act on personal income tax, the act on corporate income tax and some other acts was passed on October 29. Andrzej Duda signed it on November 16. On Tuesday, November 23, the act was published in the Journal of Laws – the changes are 140 pages long.

“The Polish Order was published in the Journal of Laws, which means that the greatest revolution in 30 years, bringing about chaos in taxes, is already certain! There is just over a month left to learn about this legislative miracle” – commented Oskar Sobolewski from the Pension Institute on Twitter.

Polish Order. Tax Act in the Journal of Laws. What will change?

Tax changes are to apply from the new year. The new regulations provide for an increase to PLN 30 thousand in the tax-free amount, and up to PLN 120 thousand – the first tax threshold to which the 17 percent rate applies.

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Over PLN 120 thousand, the tax rate is 32 percent. The act also changes the rules for deducting health insurance contributions – part of it will no longer be deductible. For people with an income from PLN 68,000,400 to PLN 133,000,600, the act introduces the so-called middle class relief, so that the lack of deduction of health insurance contributions does not increase their tax threshold. This relief will be available to full-time employees and entrepreneurs who settle accounts on general terms.

Mateusz Morawiecki presenting the Polish DealPolish Order. What is the amount of the health insurance contribution in 2022? [WYLICZENIA]

The act also provides for a relief for working pensioners. People who reach retirement age, but will still work and will not receive a retirement pension, will receive an additional deduction of PLN 85,000, i.e. they will not pay tax on income not exceeding PLN 115,000.

The tax-free amount will be increased to PLN 30,000. The tax threshold was also raised, to which the 32% PIT rate applies. The rules for deducting health insurance contributions from tax will also change.

The government argues that the changes will have a positive impact on the finances of the majority of society. “The Polish Governance, apart from the historic tax cuts, also means many solutions for entrepreneurs. Another element are actions that will mobilize people to pay contributions and taxes honestly, without trying to escape them,” said Finance Minister Tadeusz Ko¶ciñski.

Some entrepreneurs say “no”

The fear of changes is, inter alia, part of entrepreneurs. In early November, the Lewiatan Confederation appealed to President Andrzej Duda to veto the bill. “The changes, which are to enter into force on January 1, 2022, will worsen the conditions for the functioning of companies, will significantly increase the costs of running a business and are the largest ever tax increase for entrepreneurs,” argued Andrzej Nikończyk, chairman of the Tax Council of the Lewiatan Confederation.

Currency rates, illustrative photoThe zloty does not get stronger. It is among the weakest currencies of emerging markets

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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