Remuneration under an employment contract
- New tax-reducing amount
- New tax%
- No middle-class relief
- Double settlement of PIT advances disappears
- The principle of joint taxation of single parents was restored
| The legal statusPolish Deal January 2022 | ChangesNew Polish Deal 2.0 July 2022 | |
| 1 | The monthly amount reducing employee tax is PLN 450 | The amount reducing the tax to PLN 3,600 has been changed. As a result, the monthly amount reducing employee tax will be PLN 300 |
| 2 | The current rate of 17% for the 1st tax threshold up to PLN 120,000 | The new rate of 12% for the 1st tax threshold up to PLN 120,000 |
| 3 | PIT relief for the middle class: for people employed under a contract of employment with a monthly income from PLN 5,701 to PLN 11,141 gross | no middle-class tax relief regardless of income |
| 4 | The possibility of double settlement of advance payments for PIT in accordance with the regulation | The obligation and the possibility of double settlement of PIT advances in accordance with the regulation disappears |
| 5 | Joint taxation of single parents is not possible | The principle of joint taxation of single parents was restored |
1. Decreasing of amount that reduces the tax advance. From July 1st, 2022 tax free amount (amount reducing the tax advance to be paid) will be PLN 300,00 per month.
2. Decreasing tax rate in the first tax threshold. Decreasing the tax rate to 12% for income up to PLN 120,000,00. The new rate will apply throughout the tax year. Employers will not make any adjustments. The refund of overpaid tax for the months of January – June will be settled in the annual tax return.
3. Liquidation of middle class relief. The tax relief may be applied exceptionally by the Tax Office, if it turns out that the tax advance calculated in accordance with the rules applicable from July 1, 2022 is higher than the tax advance calculated in accordance with the provisions before the changes. The Tax Office will calculate the tax advance in two ways and if there is a difference, it will inform the taxpayer and refund the overpayment.
4. Liquidation of double tax calculation and extended deadlines for collection of advance payments. The employer does not have to double calculate the tax advance (according to the rules of 2021 and according to the rules of 2022). The employer pays the calculated tax advance by the 20th of the month following the renumeration payment.
Changes do not require any applications from employees
5.The principle of joint taxation of single parents was restored and it will apply regardless of whether the child has a certified degree of disability. If the employee wants to take advantage of this option, he must to submits a declaration on the reduction of the income tax advance payment. The sent document allows you to pay a smaller advance. If the employee does not submit the document and there is an overpayment of tax, the tax office will return it in the annual settlement.
Change nr 5 demands applications from employees
