On November 15, 2021, President Andrzej Duda signed the act known as the Polish order. Most of the new regulations will apply from January 2022, the regulations were published on November 23, 2021 in the Journal of Laws (Journal of Laws of 2021, item 2105).
Catalog of the most important changes introduced by the Polish governance
The Polish order introduces many changes that will affect as many as 26 legal acts, the most important changes are:
1. increasing the amount free from personal income tax to PLN 30,000;
From January 1, 2022, the tax-free amount in Poland will be comparable to that in European countries. It will increase from the current PLN 8,000 to PLN 30,000.
2. increasing the first tax threshold to PLN 120,000;
The amount of the tax threshold from January 1, 2021 will be increased from 85,000. up to 120 thousand zloty. Income subject to the 32 percent rate. will apply only to those obtained above 120 thousand. zloty.
3. extension of the catalog of exemptions from personal income tax by specific revenues, including the revenues of the taxpayer who transferred his place of residence to the territory of the Republic of Poland, the revenues of the taxpayer who in the tax year exercised parental authority in relation to at least four children, performed the function of a legal guardian if the child lived with him or performed the function of a foster family and the income received by the taxpayer after the age of 60 for a woman and 65 for a man who, despite acquiring old-age and disability pension rights, does not benefit from them;
Polish Deal with a new tax relief for 4+ families. Conditions that will allow you to take advantage of the preferences – PIT.pl
Polish Order: Retirement pension without PIT passed. How much will your retirement or disability pension increase? – PIT.pl
4. introduction of the so-called middle class allowances;
Polish Order: Relief for the middle class, will people working under a contract of employment benefit? – PIT.pl
Polish Order: Relief for the middle class will not pay off – PIT.pl
Polish Deal: Relief for the middle class – working pensioners will not benefit from it – PIT.pl
5. replacing the right of a taxpayer who is a single parent of a child (s) to jointly tax with a child with the possibility of a tax deduction by such a person of PLN 1,500;
6. leaving taxation of income from rental, sublet, lease, sublet and other similar agreements, if these agreements are not concluded as part of non-agricultural business activity only in the form of a lump sum on recorded revenues;
Polish Order. Changes in private rental and depreciation only from 2023 – PIT.pl
7. the abolition of the right of a taxpayer of personal income tax and a taxpayer of corporate income tax to include depreciation write-offs on fixed assets and intangible assets that are respectively residential buildings, residential premises constituting a separate real estate, cooperative ownership right to a dwelling and the right to count as tax deductible costs for a single-family house in a housing cooperative;
8. changing the rules for determining the amount of health insurance contributions;
Polish Order: How much health insurance premiums will entrepreneurs pay in 2022? – PIT.pl
Health contribution in the Polish Lada: for whom 9%, for whom 4.9% and who will not pay it? – PIT.pl
9. the abolition of the taxpayer’s right to deduct the amount of the health insurance premium paid (collected by the payer) in the tax year from the amount of personal income tax due for that year or the flat-rate income tax on certain revenues earned by natural persons;
10. introducing a minimum corporate income tax of 10% of the tax base;
11. establishing the rules of taxation of the holding company;
Polish Holding Company in Polski Łada – PIT.pl
12. introducing the institution of temporary seizure of real estate;
13. introducing the institution of an investment agreement;
14. introducing the principle that the application of taxation in the form of a tax card will apply only to those taxpayers who continue to apply this form of taxation after 31 December 2021 and have not resigned from taxation in this form after that date and have not lost their right to taxation in this form after that day;
15. establishing the rules of taxation in the VAT group;
16. obliging the consumer to make payments via a payment account, if the one-off value of the transaction with the entrepreneur, regardless of the number of payments resulting therefrom, exceeds PLN 20,000;
17. introduction of the checking purchase institution;
The tax office will be able to check the taxpayer at any time. What is a verification acquisition? – PIT.pl
18. establishing a tax abolition for taxpayers of personal income tax, taxpayers of corporate income tax and taxpayers of flat-rate income tax on certain revenues earned by natural persons by introducing a temporary lump sum on income in the amount of 8% of the tax base.
The government is preparing a tax abolition under the New Deal. Who will use it and when? – PIT.pl
19. limitation of illegal work
Polish Order: new regulations restricting illegal work – PIT.pl
Polish order in the Journal of Laws
The act was published on November 23, 2021, https://dziennikustaw.gov.pl/D2021000210501.pdf. Most of the rules will apply from January 1, 2022.
Polish Order Taxes 2022 Changes in VAT Deductions in PIT Relief for the middle class Rehabilitation relief Relief for children Joint settlement of PIT pensions Forms of taxation Tax-free amount ZUS exemptions Health contribution Income Split payment Tax card Lump sum