PwC: Poland has one of the lowest PIT rate in UE
15:03
Poland took 20th spot in a ranking compiled by PwC which ranks the EU countries in order of which has the highest threshold of the PIT rate. The report indicates that most countries have progressive PIT taxation, it also points that Poland has one of the lowest tax-exempt amount.
Poland's highest income tax threshold stands at 32 percent, while in more than half of the EU countries the highest rate ranges between 40 and 57 percent. The Czech Republic has the lowest income tax rate at 22 percent, among countries with progressive taxation.
In the EU, only five countries have the flat tax rate (Bulgaria, Romania, Hungary, Lithuania, Latvia, Estonia), of which Bulgaria has the lowest (10 percent).
"In terms of nominal rate, Poland is ranked 20th. Nonetheless, we should also take into account the level of tax-free amount, social insurance contributions, the level of tax thresholds and tax allowances," said Joanna Narkiewicz-Tarłowska, deputy director in the tax-legal department at PwC.
The report also indicates that Poland took 15th spot in terms of non-wage labor costs, ordered from the highest to the lowest.
