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Record tax cuts - this means more money in citizens' wallets

24.04.2023

Since 2015, the government has introduced many favourable tax measures. This benefits all Poles, who receive refunds when settling their personal income tax for the previous year. We have reduced income tax from 17 per cent to 12 per cent. At the same time, we have raised the tax exempt amount to PLN 30,000 and the tax threshold from just over PLN 85,000 to PLN 120,000. Thanks to the measures we introduced, 20 million taxpayers paid lower taxes. A total of PLN 18 billion will go back to the citizens.

Premier rozmawia z rodzinami.

More money in Poles' wallets

The vast majority of citizens feel the benefits of the new tax solutions. The system is more transparent and, thanks to the new rates and income thresholds, even more money stays in the wallets of Polish women and men.  

“The government of the Law and Justice party equals low taxes. The best confirmation of this is the tax refunds that are going into the accounts of Poles today. Never in the history of the Third Republic in the period of settlements have there been such tax refunds. Let this be the best proof of what the government's tax policy is,” said the Prime Minister.

  • We have reduced income tax rates twice - in October 2019 from 18% to 17%, and from January 2022 - to 12%.
  • In addition, we raised the tax exempt amount from PLN 3,091 to PLN 30,000. This means that no citizen pays PIT up to the above amount. Thanks to this change, taxpayers do not pay PIT if they receive a salary or pension up to PLN 2,500 per month.
  • From 2022, a new income threshold applies. It has been raised from just over PLN 85,000 to PLN 120,000. Up to this amount, a 12 per cent PIT applies, and only after exceeding the higher threshold is a 32 per cent tax paid.
  • Zero PIT - we have exempted the following from income tax: under-26-year-old persons, returnees to the country, families of 4+ and working seniors. Zero PIT applies to earnings up to PLN 85,528.
  • We have introduced preferential income settlement for single parents. As a result, a single parent does not pay tax up to PLN 60,000.
     - A number of tax reliefs apply for PIT and CIT taxpayers - R&D tax relief, prototype relief, robotisation relief, pro-growth relief, sponsorship relief, innovative employees relief.

“We have improved the lives of the wider middle class. We have improved their net salaries. We have also raised - for the first time in a dozen years – tax deductible expenses. We have higher net salaries, with lower tax rates, and therefore lower taxes. Especially the one that is of most interest to all citizens – the personal income tax,” said the head of the Polish government.

Record tax refunds for last year

The effect of the tax cuts and the solutions we have introduced are record refunds when settling PIT for 2022.  At least 15 million Poles will receive tax refunds of around PLN 18 billion. So far, taxpayers have already filed more than 11 million returns, and the majority have been submitted electronically, mainly via Twój e-PIT.

“Our policy is low taxes for families, for citizens and for all Poles, and fair taxation for multinational corporations. This is what we have done and that is where we find funds for social policy, for infrastructure policy and for security policy. And precisely for low taxes,” said Prime Minister Mateusz Morawiecki.

Photos (4)

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