PwC: Poland has one of the lowest top PIT rate in EU
15:31
Poland took the 20th spot in a ranking compiled by PwC which ranks EU countries in order of highest Personal Income Tax threshold. 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 for top earners at 22 percent, among countries with progressive taxation.
In the EU, only five countries have a flat tax rate (Bulgaria, Romania, Hungary, Lithuania, Latvia, Estonia), of which Bulgaria has the lowest (10 percent).
"In terms of nominal top rate, Poland is ranked 20th. Nonetheless, we should also take into account tax-exempt amounts, 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, when compared from highest to lowest.
