The first salary payments after the PIT reduction will take place on Friday, July 1. The Ministry of Finance explains how the new tax system works and announces a new tool a salary calculator thanks to which each taxpayer will be able to independently calculate what remuneration he will receive after the PIT reduction.
On Friday, July 1, an amendment to the tax part of the Polish Deal entered into force. PIT tax reduction. It’s about the rate in the first tax bracket – it will be reduced from 17 to 12 percent. The goverment calls the new reform Low Taxes.
How much we should get in the first July payment, for which we will already pay the advance, calculated according to the new rules, you will be able to calculate yourself in a calculator prepared by the Ministry of Finance.
From 1 July, a calculator prepared by the Ministry is to be available, allowing taxpayers to calculate how much they should get “on hand” after the introduced changes. More functions will be added to it gradually.
In the first phase of the calculator’s operation, contractors and full-time employees will be able to use it.
From 8 July, the calculator will take into account the situation when a person is employed simultaneously on two contracts – a job and a contract.
On July 15, retirees will check their due net benefits, and from July 22, it will be possible to check net salaries in the event that we settle accounts with the spouse.
In the last, fifth phase, which will start on August 5, entrepreneurs will also calculate their income. Ultimately, the calculator is also to allow people running a business to calculate which form of taxation will be the most beneficial for them, Soboń pointed out during the conference, during which he presented the calculator start-up schedule.
The final shape of the Polish Deal
The ministry treats the introduced changes as the target form of the reform.
– We are finishing a certain stage because we are closing the PIT changes. From tomorrow, from July 1, we have a tax system that will apply throughout the fiscal year 2022. After these changes, we have a more predictable tax system, more understandable for those who deal with taxes and more fair – said Deputy Finance Minister Artur Soboń at the press conference .
He also referred to the allegations relating to changes in the Polish Order in general:
– Someone might say that you just had to go back to what was. We did not do it, because this system was simply not worth defending.
It is primarily about changing the method of calculating the health insurance premium. The system in force in 2021 preferred people with higher earnings, indicated Deputy Minister Soboń.
During the conference, the ministry also presented calculations according to which every taxpayer earning up to PLN 18,000 gross on the Polish Deal and Polish Deal 2.0 benefits. On the other hand, people with an income above this limit are ultimately more taxed under the system.
According to these calculations, the new system is therefore more progressive, the ministry says.