Numerous amendments to the tax system are to be expected as early as 2022. They have been envisaged by the announced Polish Deal (Polski Ład) programme. The changes will cover virtually all taxes, and the biggest revolution awaits entrepreneurs.
The Polish Deal program was presented in mid-May2021. The first details, i.e. drafts of new regulations, are expected to be released in the autumn. What changes to expect?
In the area of PIT, it is necessary to mention the plan to raise the tax allowance to PLN 30,000 and to tax income up to PLN 120,000 per year at 17%, i.e. to raise the second threshold of the tax scale.
At the same time, the amount of the health insurance contribution and the way it is calculated are to be standardized. As a result, employees and businesses are expected to pay a 9% contribution on the tax base.
We invite you to use the Remuneration Calculator, which allows you to estimate net earnings under an employment contract and for self-employed persons, taking into account the assumptions of the government program Polish Deal:
Remuneration Calculator – Polish Deal
There are new reliefs to be added in the CIT. One of them is to apply to IPOs and investing in IPOs. A dedicated relief is also to apply to entrepreneurs who invest through Venture Capital funds. In addition, the conditions for applying Estonian CIT are to be modified so that a wider group of companies will be able to use this form of accounting.
Additionally, the government wants to promote investing in innovation, which is why a lot of attention in the Polish Deal is paid to reliefs: R&D, IP Box, for prototype, for industrial robotization and for support of innovative employees.
The changes will also include VAT. The most important novelty to be introduced is the ability to create VAT groups along the lines of those already in place today for corporate income tax. Among other things, this will allow for simpler and faster settlements within such a group.
Read more about the planned changes in our alert:
Polish Deal. Tax changes (pdf)
Find out more about the other changes introduced the Polish Deal:
In case of any questions regarding the Polish Deal, please do not hesitate to contact our experts:
