- On Thursday, deputies adopted a law to change the tax system in Poland
- Many of the provisions in it completely change the assumptions of the Polish deal. Goes, among other things to obtaining a middle-class benefit, the settlement of single parents with a child or the method of deducting health insurance fees
- However, the most important component of the tax changes is the reduction of the income tax rate from 17 percent to 12 percent.
- The reduction in the tax rate, even though the tax exemption for the middle class is abolished, means that the net salary will increase every month
- We’ve checked who will benefit the most from the July changes
- You can find more of this information on the Onet homepage
Due to the vote on the PIT Act on Thursday, the new regulations only need the signature of Andrzej Duda to take effect. And he will not be late with him, because there is little time until July.
Next month, we’ll have another tax revolution this year. But we’ll basically benefit from that, at least according to the government’s assumptions.
All thanks to reducing the interest-to-investment ratio from 17 to 12 percent. with less tax Almost everyone will benefit. Both employees and contractors are full time. Also, those who work on a contract basis for a specific job, retirees and even entrepreneurs who pay according to the tax scale will earn more.
So where does this “roughly” come from? The July changes won’t affect those who didn’t pay the tax anyway. We are talking about earning less than 30 thousand. PLN per year, less than the free amount. For them, it makes no difference whether they don’t pay tax at a 17 percent or 12 percent tax rate.
Most importantly, the difference in salary We’ll only see the payment for the month of July. For many of us, this means that the return that will be credited to our account at the end of next month will be higher Or even in early August. Of course, this depends on the schedule of each specific employer.
This is how your salary will change [KWOTY]
In reforming the Polish deal, the government changed the tax rate to 12 percent, but at the same time eliminated the tax exemption for the middle class, which was the most controversial among accountants and settlement professionals.
In fact Everyone should benefit from the changes. Because even if they lose their tax credits, they will be compensated with a lower tax rate.
Those who did not benefit from the relief of the middle class anyway would feel the most. They have nothing to lose from reform, and they can only gain.
The exact amounts are provided by the consulting firm Grant Thornton. Calculations made by experts relate to the proposed provisions on March 24, so they do not take into account the amendments made in the course of legislative work.
The main assumptions, however, remain unchanged. The representatives, among other things, changed the rules for single parent billing or the method of transfer at the 1 percent tax on public benefit enterprises. However, from the perspective of the monthly salary of the Poles, it does not change anything.
As can be seen from the accounts, The July reform brings tangible benefits, first of all, to those who earn the most.
The study stated that “people with a labor income of 12.5 thousand PLN per month will receive 4.5 thousand PLN annually. The annual interest will be less than PLN 500.”
In the table below, Grant Thornton presents monthly and annual salary changes in two variables. The first is the original assumptions of the Polish deal, including with a middle-class relief and an income tax rate of 17%. The second (introduced on March 24) is the Polish New Deal, that is, without dilution and at 12 percent.
What does it show? In fact, those with higher incomes benefit the most. For people with a salary of 20 thousand. Earning PLN is 375 PLN per month. At the same time, they are still losers throughout the entire tax reform. But not more than 650 zlotys “only” 270 zlotys per month.
Where does the loss come from? Unfavorable changes in health insurance accounting. As of January, this is no longer tax-deductible, so the state will take an additional 9 percent. in the form of this installment.
With lower salaries, the differences will be more pronounced. Whoever earns 15 thousand. PLN, the fix means that instead of losing PLN 273, they will gain more than PLN 100. So the total accrual is PLN 375 per month and PLN 3.5 thousand. PLN per year.
In turn, with a salary of 10 thousand. PLN for the first half of the year was less than 7 thousand. PLN at hand. Now it is supposed to be more than 7.1 thousand. PLN, which is 200 PLN more per month and 2.5 thousand. PLN per year.
Those who earn less will not feel the changes. They did not pay the tax anyway, because they were included in the tax exemption amount of 30,000 PLN. PLN per year.
According to experts, the changes in taxes, which will be implemented from July, but cover the entire year 2022 (such a complex structure proposed by the government), will have another impact. It is very likely that many of us will receive a large tax refund in the spring of 2023. In the first six months of the year, the tax office took us too much. We write more about this in a separate article.
This is how PiS broke up the Polish deal
At the end of March, Prime Minister Mateusz Morawiecki and Deputy Finance Minister Artur Soboc introduced changes to the Polish Lada, which will enter into force in July. We were the first to report them to Business Insider Polska.
The government’s pilot program turned out to be a complete failure and many changes had to be made and some solutions pulled out.
The rest of the article is under the video
The main feature is Reducing the profit rate before investment from 17 to 12 percent Income will cover up to the level of 120 thousand PLN. PLN, achieved by employees, but also contractors, retirees and entrepreneurs.
Assume another idea PiS withdraws from middle-class comfort. At the same time in the act A guarantee must be issued that even though the tax credit is liquidated, the taxpayer will not lose out on the change. The changes approved by the House of Representatives on Thursday are also valid Other accounts for the health contribution of entrepreneurs. It’s about those who settle with flat tax, lump sum and tax card.
Here, however, there will be limits. For the “liner” it will be 8.7 thousand. PLN contributions are deducted from income in a lump sum of 50%. Paid subscriptions and 19 percent. Premium paid to those who settle with a tax card.
The government also withdrew from changes to single parents. Possibility of joint settlement with the return of the child, Thanks to this, these taxpayers will use the tax-exempt amount of 30,000 PLN twice. zloty. On the other hand, a relief of 1.5 thousand. PLN for such people.
So PiS withdrew from several solutions that were not entirely favorable to taxpayers, and in return proposed lowering the tax-profit rate to 12 percent. This change will have the greatest impact on the governors of the Poles.
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