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Poland – Changes to Income Tax Rates.
On 14 June 2022, the President of Poland approved the Act amending the Act on Personal Income Tax and certain other acts. The Act provides for the below changes:
- Reduction of the lowest income tax rate from 17% to 12% for taxpayers who earn between PLN 30,000 to PLN 120,000 per year (income up to the amount of PLN 30,000 is not taxed).
- Consequently, this change means the tax relief is lowered from PLN 5,100 to PLN 3,600 per annum.
- The repeal of the middle-class tax relief introduced on 1 January 2022. The relief was introduced to alleviate the burden caused by the non-deduction of health contributions from taxable income for eligible taxpayers with an annual income in the range of PLN 68,412 to PLN 133,692.
- The law came into effect on 1 July 2022.
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