‘There will be no free amount in the linear PIT’: Ministry of Finance
22:00
Discounts proposed by the SME spokesman for people paying PIT at a flat rate are not supported by the Ministry of Finance. This destroys the sense of this tax, explains the Ministry of Finance (MF).
Flat tax, with a fixed rate of 19 percent. independent of the amount of income obtained was constructed assuming that there is no exempt amount, the Ministry of Finance said. The spokesman for small and medium-sized enterprises (SMEs) postulated that such an amount should be provided for in the Polish Deal.
At the same time, the ministry calculates that the use of this tax at the rate of 19 percent will be profitable with income from PLN 16,000 per month.
“The Polish Deal Program assumes a further reduction in PIT. After the changes, for all those paying tax according to the tax scale, including entrepreneurs with income from business activity, the tax-free amount will increase to PLN 30,000, and the tax threshold up to PLN 120,000,” MF reminded.
It added that an alternative for entrepreneurs is flat-rate forms of income tax and that in 2021 the income limit for the possibility of taxation with a registered lump-sum tax was significantly increased from €250,000 up to €2 million.
The scope of the freelance professions covered by it was also expanded, including legal advisers, construction engineers, statutory auditors, accountants, insurance agents, and tax advisers. The Polish Order announces further changes.
