The Polish Order - tax changes bill is ready

The Polish Order - tax changes bill is ready

The Polish Order - tax changes bill is ready
The Ministry of Finance has presented a draft tax bill under the Polish Order and sent it for public consultation. The draft provides for a number of changes, including ones regarding forms of taxation, which are expected to come into force at the beginning of 2022.

The draft of the first tax act has been presented. It will consist of 3 packages. The introduction of these changes is to cost 8 billion PLN.

The Polish Order tax bill - 3 packages of changes

The comprehensive tax reform being prepared by the Ministry of Finance consists of the following packages:

  1. The first package - changes in the form of taxation: the package contains, inter alia, an increase in the tax-free amount to PLN 30 thousand, changes in the calculation of the health contribution, new lower lump-sum rates to make this form of taxation more popular and a higher 2nd tax threshold;
  2. The second package - new tax reliefs and solutions: the package "tax restart of the economy" includes over a dozen reliefs, including tax reliefs for people earning income from widely understood employment relationship, R&D reliefs and tax solutions within the so-called Investor Desk and Interpretation 590 dedicated to holding companies and intended to encourage financial institutions to invest;
  3. The third package - sealing the system: the package "equal opportunities for business" contains changes to the Act on the National Fiscal Administration covering, inter alia, the introduction of the so-called check acquisition structure and changes to the depreciation of real estate.

Learn more: The New Polish Order - changes in taxation


Draft tax bill of the Polish Order - the most important changes in package I

The changes announced under the Polish Order, especially those concerning the forms of taxation, will affect the tax settlements of both entrepreneurs and their employees


Learn more: Polish New Order: Salary Calculator for 2022


The key four changes of the 1st package of tax reform under the Polish Order:

  • Higher tax-free amount - the tax-free amount for all the taxpayers who settle according to the general principles of PIT will be raised to PLN 30 thousand (entrepreneurs settling PIT at a flat rate will not benefit from this solution),
  • Higher 2nd tax threshold - the second threshold, beyond which the 32% PIT rate applies, will be raised to 120 thousand PLN (currently the threshold is 85 thousand PLN),
  • Changes to the lump sum on registered income - in 2022 the lump sum rates are to be lower: for medical and technical professions there will be a 14 per cent tax rate (currently 17 per cent) and for programmers there will be a lump sum at a 12 per cent rate (currently 15 per cent),
  • Changes in the calculation of the health contribution - from 2022 it will not be possible to deduct the health contribution from income (the contribution of employees and entrepreneurs taxed according to the general rules is to be calculated from income and will amount to 9 per cent, while the basis for calculating the contribution cannot be lower than the minimum remuneration),


Learn more: Health contribution in the Polish Order - draft legislation

At present, the tax bill that is part of the Polish Order has been sent for public consultation.

Polish Order

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Webinar: The Polish Order - changes concerning PIT

The Polish Order will introduce the biggest changes into the tax system for years, and they will significantly influence the situation of both entrepreneurs and their employees. What should be taken into account while preparing for the new regulations to come into force?

Contact our expert

Agata Nie┼╝ychowska
Agata Nie┼╝ychowska
Tax Director