The government took another step towards the implementation of the Polish Deal. The project, together with its justification, went to public consultation.
Ministry of Finance 26 July directed the draft post-covid amendments to tax law for consultation 59 entities. The justification for the project defines it as the Tax Restart of Economy. As far as tax solutions are concerned, as was announced:
- increase to 30,000 PLN ‘tax-free amount’ for all taxpayers calculating the tax on a tax scale,
- increase to 120,000 PLN income threshold, beyond which applicable 32% the tax rate,
- aligning the health premium rate to 9% for all taxpayers, including the elimination of the possibility of deducting the contribution to personal income insurance.
Novum is the introduction of reductions for the middle class
The recipients of this solution are taxpayers employed on the basis of a business relationship, employment relationship, overlay work or cooperative employment relationship. The relief consists of deducting from the income of a certain amount, the amount of which depends on the annual income. This is not about any type of revenue, but only about taxable revenue on the terms set out in Article 27 PIT, i.e. taxable using the tax scale, i.e. excluding tax-free revenues.
Tax payers will be entitled to the relief in the tax year, who will receive the above-mentioned eligible income for the revenues from the business relationship, employment relationship, overlaying work and cooperative employment ratios in the range from 68,412 PLN to 133,692 PLN (if applicable per month, for the purposes of calculating the monthly advance on tax, the amount from 5,701 PLN to 11,141 PLN).
The amount of these revenues will not include revenue deducted by 50% This appropriation is intended to cover the following expenditure: Article 22(9)(3) PIT Act.
Only those revenues from Article 12(1) PITs, which will be deducted by the flat-rate quota costs referred to in Article 22(2) PIT or costs actually incurred determined in accordance with Article 22(10) (in excess section) 50% standards and section 11 PIT Act.
The amount of the allowance for employees will be determined according to two separate models. The choice of an appropriate algorithm will depend on the amount of annual revenues from the business relationship, employment relationship, overlay work or cooperative employment relationship.
In the case of taxable persons subject to taxation under the conditions laid down in Article 27 PIT – annual income from work referred to in Article 12(1) PIT Act (excluding revenue to which they apply) 50% costs of obtaining the revenue in question Article 22(9)(3) PIT laws are within the range of 68,412 PLN to 102,588 PLN, the amount of the corrective reduction shall be:
(job income x 0.06684549) – 4,572 PLN
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In the case of taxable persons subject to taxation under the conditions laid down in Article 27 PIT – annual income from work referred to in Article 12(1) PIT Act (excluding revenue to which they apply) 50% costs of obtaining the revenue in question Article 22(9)(3) PIT laws are higher than 102,588 PLN and do not exceed the amount 133,692 PLN, the amount of the relief shall be:
-(job income x 0.0734609) + 9,821.75 PLN
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The employee relief will be applied in annual settlement and in the calculation of tax advances by, among other things, employment establishments, which will apply a relief for the months in which the taxable person will obtain revenue from the business relationship, employment relationship, overwriting work and cooperative employment relationship (taxable according to Article 27 Laws, excluding revenue to which the costs of obtaining the revenue in question apply Article 22(9)(3)) of 5,701 PLN to 11,141 PLN. If the condition of the amount and type of income is met, the undertaking shall reduce the income by the amount of the relief for workers at an amount calculated according to one of the models:
(A x 0.06684549) – 381 PLN
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where A is the income from the business relationship, employment relationship, overwriting work and cooperative employment relationship (which are taxable according to Article 27 Laws, excluding revenue to which the costs of obtaining the revenue in question apply Article 22(9)(3) laws) higher than 5,701 PLN and not exceeding the amount 8,549 PLN per month, or
-(A x 0.0734609) + 818.48 PLN
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- where A means the income obtained by the taxable person in the tax year from the business relationship, employment relationship, overwriting work and cooperative employment relationship (which are taxable according to Article 27 Laws, excluding revenue to which the costs of obtaining the revenue in question apply Article 22(9)(3)) higher than 8,549 PLN and not exceeding the amount 11,141 PLN A month.
Tax payers will also have the possibility of applying the relief for employees, who themselves – based on Article 44(1a)(1) PIT – are obliged without a call to pay tax advances within a year according to the rules laid down in Article 44(3a) PIT Act.