The government in Poland keeps patching up of the Polish Deal tax reform. Entrepreneurs will be able to change the form of taxation also during the tax year – said Artur Soboń, secretary of state in the Ministry of Finance, during a press conference today. This was the main demand of the small business during public consultations. Also, among others, PIT-2 form and the rules for accounting for working seniors.
Public consultations brought new announcements of changes in the Polish Deal. Entrepreneurs are to be given an additional option to change the method of taxation
After the consultations, the following will also change PIT-2 form, which was loud at the beginning of the year. “We are postponing the entry into force of July 1 this year. as of January 1, 2023, the possibility of sharing proportionally the free amount in advance payments and the free amount in advance payments as regards civil law contracts” also announced the Deputy Minister of Finance
Wednesday’s conference was to summarise public consultations on tax changes in the Polish Deal tax reform. Deputy Minister Soboń emphasises that the project will change. – The most important change that we propose is the possibility for entrepreneurs to choose the method of accounting again – he said.
“We are standardising the annual settlement date for all entrepreneurs and it is 30 April”, he added.
Let us recall that on March 24, the government announced , as part of the repair of the Polish Deal, inter alia a reduction in the PIT rate from 17 to 12 percent, the elimination of the tax relief for the middle class, the return of joint settlement with a child for single parents and changes in the health insurance premium for entrepreneurs.
During public consultations, small entrepreneurs argued that the government changes the rules during the game, so they would also like to. They were reminded that until February 20 they had to choose the form of taxation , but after changing the rules, it did not have to be profitable for them.
“If we are to talk about the re-selection of the form of taxation by entrepreneurs, then only with the annual settlement,” said Deputy Finance Minister Artur Soboń on March 30 in Polish Radio. In the end, the government bowed and intended to allow changes also in the fiscal year.
Entrepreneurs will get such options
“We are introducing the possibility of choosing the scale. It will be an annual selection until April 30, 2023. This is an episodic provision for this year only”, he explained. As he pointed out, in the following years, entrepreneurs will normally be able to choose the method of taxation, while this year it will be possible to choose, provided that appropriate accounting is kept from January 1 to December 31.
Soboń emphasised that the deadline to April 30 will be both the date for entrepreneurs to settle accounts with the tax authorities and for the re-selection of the method of taxation as part of the annual settlement. “We are standardising this date of the annual settlement and it will be April 30. There will be no other dates” – noted the deputy minister.
“We originally did not propose this for entrepreneurs, pointing out that all in February who made such a choice, regardless of what choice they made, are ahead of these changes, these changes are more beneficial for them than what is in force today. It was not only a constitutional requirement, because changes in the tax year can only be made for the benefit or neutrality of the taxpayer, but most of all our offer for entrepreneurs at this difficult time” , he added.
“Entrepreneurs wishing to switch from the lump sum on a scale from July 1, will be able to submit their intention to do so by August 22 and keep books for half a year in the way they chose at the beginning of the year; in the second half of the year they will be able to conduct them based on the change” , said Deputy Finance Minister Artur Soboń.
“Those entrepreneurs who today do not want to retroactively change how to keep books, how to calculate tax and contributions, only want to do it from July 1 and already settle in a different way in advance payments, switch from lump sum to scale, these entrepreneurs they will have this option until August 22nd and they will be able to keep the books of the six months as they chose at the beginning of the year; in the second half of the year, they will be able to conduct them based on the change they have made, i.e. they have moved from a lump sum to a scale”, explained Soboń.
“Of course, this has its advantages and disadvantages, because you do not have to go backwards with accounting, but the disadvantage is that there are no bonuses that exist with the joint annual statement, so this is a choice, it is an optional choice that the entrepreneur can make”, headded.
Changes in the Polish Deal tax reform not only for entrepreneurs
Artur Soboń emphasised that the new proposals complement the January reform. – After the changes, we have a more predictable, stable and progressive tax system than in 2021. All those who earn up to 18 thousand. PLN, are less taxes than in 2021, and those who earn more, a little more. The poorest are gaining the most – he said. But some experts disagrees.
After the consultations, the following will change, among others PIT-2 form, which was loud at the beginning of the year. – We want to make PIT-2, which is already known to taxpayers and tax payers, a uniform model for various types of declarations, which we have previously submitted separately – Soboń pointed out.
He added that in PIT-2 “there will be a whole catalogue of issues that can be highlighted and selected and they will apply to our tax settlement.”
As he said, it is not only about the so-called the free amount, but also, inter alia, tax deductible costs – “whether, for example, we want to settle accounts together with the spouse, which may be important, because, for example, we will come out later on the tax scale and then exceed the tax threshold”.
According to Soboń, this is a great facilitation “which we will propose together with accountants and entrepreneurs under these provisions.”
“We are postponing the entry into force of July 1 this year. on January 1, 2023, the possibility of sharing proportionally the free amount in advance payments and the free amount in advance payments as regards civil law contracts” also announced by the Deputy Minister of Finance.
“We will eliminate the relief related to the rotation of the monument,” he added. At the same time, he emphasised that “if someone wants to invest, renovate such a monument, then under the strict supervision of a conservator, after approval on the basis of the documents specified in the act, he will be able to make such a tax deduction”.
The rules of accounting for seniors who have decided to earn some extra money in retirement are also to be unified. Now, PIT-0 is also to cover working pensioners who have already received the benefit, but resigned from it for the duration of their work.
The deputy minister also said that allowances for participation in, for example, election commissions or state examinations will not be charged with a health insurance fee. We proposed a limit of 6,000. zloty.
“Interministerial arrangements are ahead of us. We want parliamentary work to begin at the end of April. The project may still undergo corrections. In total, over PLN 40 billion will be paid less by Poles in taxes” emphasised Piotr Muller.
How to spot the changes?
“I want to assure you that when the regulations come into force, we will put in place appropriate calculators so that everyone in their real situation can count how much of this tax they have to pay”, said Artur Soboń.
He noted that for 13 million taxpayers the changes are a plus. The rest are in such a situation that “it is impossible for them to pay lower taxes by a simple reduction in the scale”.