It has already happened. People receiving rental income from January 1, 2022 will pay income tax (PIT) on a completely new basis. This is a real revolution! The price for putting the regulations in order is the need to pay only a lump sum – without the possibility of deducting tax deductible costs from the tax base.
The Sejm passed the act regulating the tax part of the Polish Order program – the act is waiting for the president’s signature and publication in the Journal of Laws, so that on January 1, 2022, its provisions enter into force. Some of the changes – their nature is revolutionary – fundamentally change the rules of taxation of rental income obtained by natural persons.
From the beginning of the tax system in Poland, private individuals obtaining income from private lease, like sole proprietorships, could choose the form of taxation between a simpler lump sum on recorded income and PIT on general principles. The New Tax Order removes this choice: rental income will be removed from the PIT Act, and the recipients of it will be covered only by the provisions of the Lump-sum Tax Act. Taxpayers who invested money in renting, buying flats for this purpose or renovating old premises to adapt them to the rental market standard, will lose. Tax according to the tax scale will be payable only if it is known for income from business activity.