The most important tax changes coming into force from 1 January 2022

 

  1. Personal income tax. Increased tax-exempt allowance
    1. The personal income tax-exempt allowance was increased from PLN 8,500 to PLN 30,000. The tax-exempt amount is equal PLN 5,100. This amount will not be degressive.
  2. Tax scale in 2022
    1. The basis for calculating the tax in PLN from PLN 0 to PLN 120,000 - the tax equals 17%, minus the tax-exempt amount of PLN 5,100
      Income over PLN 120,000 - the tax equals PLN 15,300 + 32% of the surplus over PLN 120,000
  3. Health insurance contribution - revolutionary changes.
    1. 3.1 Different rates of health insurance contribution (depending on the method of taxation)
      9% of income - for entrepreneurs taxed on general terms and for partners of general partnerships
      4.9% of income - for entrepreneurs paying a flat tax of 19% The minimum amount of the health contribution - e.g. in the event of a tax loss or low income – equals PLN 270.90, the obligation to pay such a contribution will arise when the income is less than the minimum wage applicable in 2022.
    2. 3.2 Flat fee payers’ health contribution.
      Health contribution related to the obtained annual income will be the method of calculating the premium used by taxpayers paying the tax in the form of a registered flat fee. The basis for calculating the health insurance contribution will be the value of the average monthly salary in the enterprise sector in the fourth quarter of the previous year.
      For income up to PLN 60,000 annually, the contribution will be 9% out of 60% of the base amount, i.e. PLN 318.60 per month.
      For income from PLN 60,000 to PLN 300,000 annually, the contribution will be 9% of the total base amount, i.e. PLN 531 per month.
      For income above PLN 300,000 annually, the contribution will be 9% of 180% of the base amount, i.e. PLN 955.80 per month.
    3. 3.3. Health contribution applicable for the remuneration of the members of the management board who serve on the basis of an appointment agreement.
      This contribution will be 9% of the remuneration (before tax). The taxpayer will be the company.
  4. Change of payment dates of ZUS contributions
    1. From January 1, 2022, the payment of ZUS contributions will take place:
      • by the 5th day of the following month - for budgetary units and local government budgetary establishments,
      • by the 15th day of the following month - for payers with legal personality,
      • by the 20th day of the following month - for other payers (natural persons running a business).

  5. Tax relief for the “middle class”
    1. The newly introduced tax relief is to compensate for the loss of the right to deduct health insurance contributions.
      A certain amount will be deducted from one’s income, the amount of which will depend on the level of the annual revenue / income. This relief will be applied to the above-mentioned taxpayers who will obtain revenues / income ranging from PLN 68,412 to PLN 133,692 within the tax year.

  6. Sale of a car after purchasing it from leasing as a subject to taxation for 6 years
    1. The sale of a car purchased from leasing and transferred to private property (natural persons) will result in a tax duty if 6 years have not passed between the first day of the month following the month in which the component is withdrawn from operation and the date of its sale for consideration.

  7. Flat fee for private use of a company car
    1. From 1 January 2022, the flat fee for the use of a company car by an employee for private purposes will be:
      • for cars with an engine power of up to 60kW - PLN 250,
      • for cars that are electric or hydrogen-powered vehicles - PLN 250,
      • for cars other than those mentioned above - PLN 400.

  8. Registered flat fee - lower tax rates for programmers and engineers.
    1. Pursuant to the new regulations, computer programmers (IT industry - PKWiU [Polish Classification of Businesses] 62.02.10.0 and PKWiU 58.29.1) will be able to pay 12% tax calculated on their income. Meanwhile architectural and engineering services, as well as technical research and analysis services (PKWiU classification 71) will be taxed at a 14% rate.
  9. Restrictions on depreciation of residential premises
    1. From 2023, for all taxpayers, tax depreciation will not apply to residential buildings, residential premises constituting a separate real estate, cooperative ownership right to a dwelling, and the right to a single-family house in a housing cooperative, used for business activity, or leased or rented under a contract.
      From 2022, depreciation will no longer be possible for newly acquired properties.
      From 1 January, 2022, to 31 December, 2022, taxpayers who have already owned the property as of 31 December, 2022, will still be able to continue depreciation.

  10. Tax sanctions for illegal employment
    1. In the case of employing without complying with the relevant provisions of the labour law and employing foreigners, the employer will be charged with additional income equal to the remuneration paid to the illegally hired employee.
      Additional income gained by the employer will also include the employee's income from their illegal employment, and the employee's income in the part in which the employer did not disclose them to the applicable state authorities (e.g. by failing to pay ZUS contributions or income tax advances).

  11. Minimum income tax
    1. The minimum income tax will be paid by companies that are CIT taxpayers and tax capital groups, which during the tax year:
      • have suffered a loss from a source of income other than capital gains, or
      • achieved the share of income from a source other than from capital gains, in the income other than from capital gains in the amount not greater than 1%.
      This tax will be 10% of the tax base.
    2. The minimum income tax will not be paid, inter alia, by taxpayers:
      • who started their business - in the year of commencement of the business and in two consecutive tax years,
      • being financial enterprises,
      • who, within a given tax year, obtained revenues lower by at least 30% in relation to the revenues obtained in the tax year immediately preceding this tax year,
      • whose shareholders, shareholders or partners are only natural persons and if the taxpayer does not have shares (stocks) in the capital of another company, participation titles in an investment fund or collective investment institution, all rights and obligations in a company that is not a legal person and other property rights related to with the right to receive a benefit as a founder (founder) or beneficiary of a foundation, trust or other entity or a legal relationship of a fiduciary nature,
      • dealing with international transport of ships or aircraft, mining of minerals,
      • being part of a group of at least two companies, in which one company has a direct 75% share in the share capital, share capital or capital share, respectively, of the remaining companies in this group throughout the tax year, provided that certain conditions are met.
  12. Tax on transfer pricing
    1. CIT taxpayers will be required to pay 19% tax on transfer pricing. The transfer pricing shall be deemed to be costs incurred directly or indirectly for the benefit of an entity related to the company and constituting the receivable of that entity, if:
      1) the income tax actually paid by this affiliated entity for the year in which it received the receivable, in the state of its registered office, management, registration or location is lower by at least 25% than the amount of income tax that would be due from it if the income of this entity have been taxed at the 19% CIT rate, whereby the tax actually paid will be understood as tax that is not refundable or deductible in any form, including for the benefit of another entity, and
      2) these costs:
      a) which are classified in any form as tax deductible costs, deducted from income, tax base or tax of that related entity, or
      b) paid by this related entity in the form of dividends or other revenues from participation in the profits of legal persons for the year in which it received the payment
      - constituted at least 50% of the value of revenues obtained by this entity, determined in accordance with the provisions on income tax or in accordance with the provisions on accounting.

  13. Estonian CIT
    1. The regulations concerning the flat fee of the income of capital companies called Estonian CIT. The changes are to include:
      • extension of the catalog of entities entitled to flat fee taxation to include limited partnerships and limited joint-stock partnerships; therefore the name of this tax will change
      - it will be a "flat fee on company income",
      • resignation from the obligation to incur specific capital expenditures as a condition for the application of Estonian CIT,
      • resignation from the condition concerning the upper limit of taxpayers' revenues subject to flat fee taxation, and consequently also from the additional tax liability,
      • lowering the Estonian CIT rate.
      Taxpayers using Estonian CIT will be able to submit quarterly VAT returns if the sales value (including the tax amount) in the previous tax year does not exceed the PLN equivalent of EUR 4,000,000 (and other statutory conditions are met - see Art. 99 sect. 3a of the VAT Act was applicable)
      Mergers and acquisitions:
      As part of the Polski Ład Government Programme, the provisions on transfer pricing will also change. There will be, among others an extended deadline for submitting (at the request of the tax authority) local transfer pricing documentation and group documentation, the obligation to submit a separate transfer pricing declaration will be abolished, the regulations on transfer pricing adjustments will be amended, as well as exemptions from the obligation to prepare transfer pricing documentation

  14. Technological and Innovative tax reliefs
    1. • R&D tax relief supporting conceptual work on a new product.
      • Relief for a prototype, supporting the transfer of an idea into the language of practice and production.
      • Tax relief for innovative employees, facilitating competition for specialists with key skills and competences.
      • Discount for robotization, which will facilitate the opening of a production line dedicated to the product.
      • IP Box relief, which will reduce the burden at the stage of its sale.
      • The IPO relief along with the relief for investments in stock exchange debutants will make it easier for Polish companies to enter the stock exchange and find the investors they need.
      • Consolidation relief addressed to companies which, by merging with another entity, decide to save, for example, their contractor, supplier or other business in need of support.
      • Expansion relief, thanks to which expenses on searching for new markets for Polish products can be deducted twice.
      • Tax-attractive rules for investing through Venture Capital, which will be an incentive to invest capital in innovative Polish enterprises and start-ups.
      • Polski Ład Government Programme expects the Estonian CIT to become significantly more attractive. The project will remove the income limit and will allow limited partnerships and limited joint-stock partnerships, simple joint-stock companies and cooperatives (the latter - in the scope of the so-called investment fund) to enter the Estonian CIT. Entry and exit taxation will also disappear.