Bill on PLN 130,000 PIT threshold submitted to Poland’s Sejm — RMF24

A new government bill on changes to the taxation of individuals and legal entities has been submitted to Poland’s Sejm. The document provides for raising the first personal income tax (PIT) threshold from PLN 120,000 to PLN 130,000. As RMF24 reports, the bill was referred to the Legislative Bureau for an opinion, and its first reading is scheduled for Thursday.

New rates and limits

For income up to PLN 130,000, the PIT rate is to remain at 12%. The bill also proposes setting a 24% rate for income above PLN 130,000 and up to PLN 150,000. Income exceeding PLN 150,000 is planned to be taxed at 32%.

The document also provides for other changes. The income limit allowing taxpayers to choose flat-rate taxation is proposed to be lowered from EUR 2 million to EUR 250,000. The solidarity levy rate on income exceeding PLN 1 million per year is to be increased from 4% to 5%.

In addition, the corporate income tax (CIT) rate for companies with revenue exceeding EUR 50 million per month is to rise from 19% to 22%.

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Doubts over Senate amendments

The new bill generally corresponds to the law that was previously adopted by the Sejm and considered by the Senate. The previous document was returned to the lower house of parliament with Senate amendments, but doubts arose over their constitutionality.

While working on the previous version, the Sejm added annual indexation of tax thresholds and removed the provision on increasing CIT for large companies. The Senate, in turn, proposed abolishing the indexation and restoring the CIT increase. Senate lawmakers cautioned that restoring this provision could be deemed to go beyond the scope of the law adopted by the Sejm.

The new bill states that the PIT threshold increase will enter into force only together with changes concerning CIT for large companies and flat-rate taxation. Changes unfavorable to taxpayers, including the increase in the solidarity levy, must be published in the official publication by the end of November, as they require at least a one-month period before entering into force. According to RMF24, if the bill is adopted only at the Sejm session beginning on November 17, the law may not be published by the end of the month.