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The Polish Deal – a real profit for 18 million Poles

08.01.2022

The Polish Deal programme entails a number of beneficial changes for millions of Poles. It is a historic tax reduction and as much as PLN 17 billion that will remain in the pockets of citizens. We are streamlining the process of implementation of tax changes under the Polish Deal. As of today, the regulation of the Minister of Finance on the rules for calculating advance payments for income tax is in force. This means, among other things, that people who received a smaller salary in January will get their money back. In addition, next week we will announce new solutions within the Anti-Inflation Shield 2.0 - from 1 February 2022, we will reduce VAT on fuel from 23 per cent to 8 per cent. At the petrol station, you will pay approx. PLN 0.70 less per liter of petrol or approx. PLN 0.40 less per liter of gas.

Rzecznik rządu podczas konferencji

We are streamlining the process of implementation of tax changes

In order to streamline the process of implementing tax changes, Minister of Finance Tadeusz Kościński signed a regulation amending the method of collecting advance payments which came into force on 8 January. This means that people whose lower taxes were not taken into account in their salary for January will receive compensation in February. Under the regulation, employers are required to promptly refund the difference. Learn more.

Do you have questions about the Polish Deal? Contact your tax office 

Tax changes, especially those affecting a large number of taxpayers, always raise many questions. As government spokesman Piotr Müller said, this tax reform is the greatest reform in over 20 years. Therefore, despite the already implemented Polish Deal hotline, from Monday we are reinforcing it in terms of personnel so that every person with questions or doubts gets an answer quickly. As of 11 January, most tax offices will be open longer.

Note: Before visiting your tax office, check its opening hours.

Poles will receive money from tax reductions 

The Polish Deal entails favourable tax changes, thanks to which as much as PLN 17 billion will remain in Poles' wallets. For about 90% of people who pay taxes in Poland, the new solutions are beneficial or neutral. “18 million Poles will benefit from the reform. These people will have higher salaries due to lowered taxes – this is the heart of the Polish government reform,” stressed government spokesman Piotr Müller.
Those earning up to PLN 5,700 gross on an employment agreement will benefit from the Polish Deal, while those earning between PLN 5,701 and PLN 12,800 gross will not lose out. Below are examples of beneficial tax changes for each group.

Pensioners

For pensioners with benefits of up to approx. PLN 12,800 gross per month, the Polish Deal will be favourable or neutral throughout the year. “For pensioners with benefits of up to 12,800 gross per month, there will also be a mechanism in place to ensure that these benefits do not get lower," said government spokesman Piotr Müller.  Pensioners with pensions of up to PLN 2,500 gross will stop paying tax, while those with higher benefits will pay tax only on the excess over PLN 2,500.

Example: Gross pension per month vs. “clear” annual profit – how much will remain in a pensioner's wallet:
●    PLN 1200 – PLN 807 and more;
●    PLN 1800 – PLN 1473 and more;
●    PLN 2500 – PLN 1785 and more.

University teachers

There will also be a change in the case of university teachers. As the spokesman for the government emphasised, a special rule will also be applied in this group so that university teachers earning up to PLN 12 800 gross do not lose out on the reform.

Persons conducting business activities
●     a beautician with an income of 3,000 gross (PLN 1,620 net) will save approx. PLN 1.3 thousand per year;
●     a locksmith with an income of PLN 4,000 gross (PLN 2,480 net) will save approx. PLN 2 thousand a year;
●    an accountant with an income of PLN 5,000 gross (PLN 3,310 net) will save approx. PLN 1 thousand per year.

Full-time employees
●    a cashier earning PLN 3,000 gross (PLN 2,203 net) will gain approx. PLN 1,840 per year;
●    a blue-collar worker earning PLN 4,000 gross (PLN 2,907 net) will gain approx. PLN 1,360 per year;
●    an accountant earning PLN 5,000 gross (PLN 3,613 net) will gain approx. PLN 560 per year.

Families
●     married couples running a joint household will be able to benefit from the tax-free amount of PLN 60 thousand;
●    a 2+2 family in which the parents earn PLN 6.5 thousand gross (PLN 4.9 thousand net), if they file income tax return jointly, will gain PLN 328 per month – i.e. almost PLN 4 thousand per year. The married couple will also be able to deduct a tax relief for their two children, i.e. PLN 2.2 thousand.;
●    spouses with 4 children, where each of the spouses earns an average salary (i.e. slightly more than PLN 5,900), will gain a total of almost PLN 9,300 on PIT-0 for Families 4+ in 2022.

From 1 February you will pay less at petrol stations

Next week, we will announce the Anti-Inflation Shield 2.0 – an enhanced tool for fighting inflation. Starting from 1 February 2022, we will reduce VAT on fuel from 23 per cent to 8 per cent, which means savings of approx. PLN 0.70 per liter of petrol or approx. PLN 0.40 per liter of gas.

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