The Ministry of Finance is working on a new PIT and CIT acts.

New drafts of the acts are yet to be published, so far there are only assumptions given. Changes, provided they will have been published and signed by the President by November 2020,will come into force probably on 1 January 2021.

The most important change is the withdrawal of the tax abolition relief.

It will affect Polish tax residents receiving income from work performed from abroad that, so far, had not paid tax on foreign income in Poland.

After the change they will have to pay taxes on their whole income in Poland and deduct the tax paid abroad from the tax calculated on such basis. In other words – despite paying tax in the country of work, they will have to pay additional tax in Poland according to the tax scale.

Changes will affect persons working in, among others, the USA, the UK, Russia, Ireland, Slovakia, Netherlands, Belgium and Norway. The cost of employing persons performing work in these countries may significantly increase. 

No tax abolish relief will not affect employees working in France, Germany or Spain, for example. They will still apply the beneficial double taxation agreement, the so-called exemption with progression method and eventually they will not have to pay extra tax in Poland.