Zero personal income tax coming in August

It was announced that officials plan to introduce a zero income tax. Polish government officials expressed the initiative to implement such a program a few months ago, and this becomes true. Just recently, the Center for State Legislation published a draft of the draft law, so it has every chance of becoming a reality.

However, the new provisions will not apply to all taxpayers. The new zero rates will be used only for certain categories of people, for example, for persons under the age of 26 and engaged in a certain income activity. All nuances will be described in the position. It will also be possible to introduce a threshold, income above which will be subject to an additional tax on the usual scale. To date, the stated limit is 85,528 zł per year. Revenues on a one-time tax at zero rates will not fall.

According to the wishes of the Ministry of Finance, the new rate will become relevant from August this year. The chairperson of the department noted that the main goal of such a situation is to create an incentive for young people to look for real work, to preserve labor inside the country and to reduce labor migration to give impetus to the national economy. The limit in the new position will be equal to the first threshold. That is, the person who receives the minimum wage (today it is 2,250 zlotys) will receive 133 savings a month.

According to preliminary calculations, the new tax rate would cost 476 million zlotys in the first year. In the following years, the rate will require 1.3 billion zlotys annually. Today in Poland, there are about 2 million people under 26 who can apply for this so the company would not pay monthly tax payments. Moreover, in the absence of statements, payments will be refunded after the end of the year.