Tax consultancy and accounting

The latest changes in the settlements of advance payments for personal income tax by employers, contractors and other payers – July 2022

03-06-2022

Since January 1, 2022, the rules for calculating and collecting advances for personal income tax (PIT) made by employers, contractors and some other payers have already been changed three times. In the near future, the fourth amendment to these rules will be adopted, which will also apply to the calculation and collection of social and health insurance contributions. More importantly, these changes are to enter into force retroactively – from the beginning of this year. Once again, payers will have to settle the first half of this year twice: once in the current system, and the second time according to the new rules. Most importantly, the basic income tax rate will be reduced and the health insurance contributions will be partially deducted from the tax base.

 

Here is the detailed program of the training:

 

  1. Reduction of the tax rate from 17% to 12%: subject, object and time scope.
  2. Elimination of the so-called middle class deduction as of mid-year: implications for first-half returns and annual returns for 2022.
  3. Deduction of health insurance premium collected from the tax base: subject, object and time scope.
  4. Limit on health insurance premium deduction from the tax base (8700 PLN).
  5. New amounts of minimum tax deductions: reduction from PLN 5100 to PLN 3600.
  6. Possibility of deducting the monthly minimum tax amount (currently PLN 425) by two or three payers, including pension authorities:
  • scope of application of amounts of PLN 300 or PLN 150 or PLN 100,
  • procedure for authorization of payers by taxpayers to apply the above amounts – taxpayer’s request,
  • effects of adjustment of settlements made in the first half-year after the new regulations enter into force.
  1. Right to authorize payers not to collect advance tax payments in case of income not exceeding PLN 30,000 annually: subject, object and time scope.
  2. Significant extension of the scope of application of the exemption to PLN 85 528 per year by persons raising at least four children.
  3. Extension of the scope of certain exemptions from personal income taxes e.g. maternity benefits.
  4. Changes in the rules of levying health insurance contributions on certain incomes: subject, object and time scope.
  5. Will it be possible to apply the new rules of calculating and collecting advance payments before 1 July 2022?