Yesterday, the draft of further changes to the Polish Governance was released. Below is the most important information regarding the changes in tax and insurance burdens that may affect you, and your employees and associates, due to the announced changes.

The information below has been prepared on the basis of the announced draft Bill - it will be subject to consultation until the 2nd of April 2022 and may be subject to change. We will keep you updated on the status of the work and details of the proposed changes.

Restoration of the possibility of a joint tax settlement with a child for a single parent and liquidation of the newly introduced tax deduction of PLN 1,500.

Possibility for the employee to submit PIT-2 form to more than one employer (but not more than three), resulting in reduction of monthly tax advances for the employee by 1/12, 1/24 or 1/36 of the annual tax free amount respectively.

The employee will have to indicate which employer is to apply the reduction and in what amount.

Imposition of an obligation on the remitter to inform a newly employed taxpayer, before the first payment, about the possibility to submit statements and motions affecting the calculation of the advance payment (e.g. regarding not applying or applying increased tax deductible costs, taking advantage of tax exemptions and allowances).

Elimination of the obligation to submit most of the declarations and requests to payers every year - once submitted, the declarations are to be valid for subsequent years (unless a separate provision stipulates otherwise).

Specifying how statements and applications may be withdrawn and amended at any time during the year - by separate written request.

Eliminating the middle class allowance with the proviso that the excess of the annual tax due calculated for 2022 without the allowance being applied over the notional tax calculated with the allowance being applied will be refunded to the taxpayer by the Treasury.

The exemption of maternity benefits from tax under the relief for young people, the relief for those moving their place of residence to Poland, the relief for families with many children and the relief for working seniors.

The possibility for entrepreneurs to deduct health insurance premiums from revenue/income up to certain limits.

Obligatory health insurance coverage for proxies (explicitly).

If you want to know more, please contact us: Katarzyna Serwińska, Tomasz Kret.