POLSKI ŁAD regulation (Polish Order)
This will go into effect from January 1, 2022. Based on this new regulation, it will cause the following changes:
- New tax limits Income base for tax
Income base for tax [in PLN] Tax % over up 120,000 17% ( minus amount of tax relief 5 100,00 PLN) 120,000 32% ( 15 300,00 PLN + 32% over 120 000,00 PLN)
- An increase of the tax-free allowance to 30 000,00 PLN per year.
- An increase of the monthly tax relief from 43,76 PLN to 425,00 PLN.
- A new tax relief called “ulga dla klasy średniej” (middle-class relief) will come into effect. This relief applies to 2 income ranges:
- From 5 701,00 PLN to 8 549,00 PLN monthly
- From 8 549,00 PLN to 11 141,00 PLN monthly
- Note: Limits are for the income gained from the employment contract, not from civil law contracts. If the monthly gross salary will be under the 5 701,00 PLN or over 11 141,00 PLN this middle-class-relief will not be used. There are also some income types that are not covered by this new relief, i.e. sickness allowance, maternity allowance. An employee may request, at any time during the calendar year, that the new middle-class relief be not applied.
- Changes to the tax advance calculation:
- Within the new Polish order regulation the amount of 7,75% of health insurance will not be deducted from the tax advance.
- This will increase the monthly tax advance to be paid to Tax Office.