Consultation on the revision of the Polish Deal has started
The Ministry of Finance has published a draft amendment to the Polish Governance. At the same time it started consultations on the proposed changes, which will last until 2 April. The ministry assures that the consultations will be extensive.
Among the most important changes to be introduced is the lowering of the PIT rate in the tax scale from 17% to 12% in the threshold of 120 thousand PLN. The solution is to cover taxpayers who settle according to the scale: pensioners, employees, contractors and entrepreneurs. The Ministry of Finance estimates that this will be 25 million taxpayers.
There will also be changes in the settlement of health contributions. Here, modifications will be addressed to entrepreneurs on a flat tax, lump sum and tax card. They will be able to reduce the tax base by health contributions paid up to a certain limit.
In the case of flat taxpayers the limit will be PLN 8.7 thousand (reduction of income). For lump-sum taxpayers, the limit is 50% of health contributions paid (reduction of income). In the case of taxpayers using a tax card, the limit will be 19 per cent of the contributions paid (deduction of tax). According to the Ministry of Finance, the change will affect 1.4 million taxpayers.
The Ministry of Finance has also announced the liquidation of the middle class relief, which came into effect on 1 January 2022. However, if someone wants to take advantage of this relief in the 2022 tax return, because such a return will be more beneficial for them, they will have the right to do so.
Starting from 2023, the relief for monuments will disappear from the regulations. There will also be no so-called tax abolition.
On the other hand, the option of settling accounts with a child of a single parent is to return to the tax regulations. According to the Ministry, thanks to this single parents will benefit twice from the free amount of 30 thousand PLN. The joint settlement is to replace the PLN 1,500 allowance introduced from 1 January 2022.
Additionally, the amount of earnings that a child may earn without losing tax preferences of parents is to be increased. This amount will increase from PLN 3089 to PLN 16 061.28 in 2022. (12 times the social pension). Family pensions of minor children will also not be added to the parents’ income. This means that the child will be treated as a separate taxpayer and will benefit, alongside the parent, from the free amount of PLN 30 000.
The Ministry of Finance has also prepared a special mechanism to mitigate the effects of the reduced income from 1% PIT for the PBO sector. Thanks to it the difference will be compensated in a situation when the total amount of funds transferred from the 1% PIT in a given year to PBOs will be lower than in 2022.
It is also worth knowing that MF wants to extend the deadline for submitting JPK_CIT and JPK_PIT. The new deadline for submitting JPK with respect to accounting books is to be postponed until 2025.