The provisions of the Polish Deal complicate the tax system

The Polish Deal will introduce a higher tax-free amount, new tax breaks, and a reform of the health insurance premium. The least earners, as well as 90 percent of retirees and disability pensioners, will gain. However, pensioners whose benefit amounts to PLN  5,000 gross or more, will lose. 

"Such actions undermine confidence in the state. We do not know what the next move will be and whether those with high pensions will not have to pay even higher taxes," Dr. Antoni Kolek, president of the Pensions Institute, said.

The tax-free amount from 2022 will be uniform and will amount to PLN 30,000. People who earn less will not pay tax at all. On the other hand, the new regulations eliminate the possibility of deducting the health insurance contribution from the tax. Relief for the middle class will alleviate the effects of changes in the health contribution, therefore the net salaries of people earning PLN 5,701-11,141 gross will not be lower.

However, Poles earning at least PLN 13,000 under a contract of employment gross not only will not gain but will even lose on changes. Therefore, key employees in their organizations will expect employers to be compensated for tax changes.

(Newseria)