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Sunday, October 24, 2021

Polish Order – Taxes. Sejm: allowance for a large family, changes in taxes for single parents

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Tax changes from the Polish Governance are subject to work in the Sejm. The Public Finance Committee on Thursday backed an amendment to the Personal Income Tax Act, introducing relief for large families with four or more children. An amendment was also adopted that changed the rules of accounting for single parents. According to the Ministry of Family and Social Policy, “for the best earners, it is currently beneficial not to marry or to divorce for tax purposes”.

The Sejm is holding a meeting of the Public Finance Committee, which deals with the draft act amending the act on personal income tax, the act on corporate income tax and some other acts with self-amendment. It is a tax project prepared under the so-called Polish Deal.

At the beginning of the meeting, a group of MPs from the Civic Coalition filed a motion for a public hearing of the bill. However, the request was rejected. The proposal of the KO MP Janusz Cichoń, who wanted to postpone the meeting of the commission to 5 October, did not receive the majority support.

– The scope of the project, but also social emotions related to its implementation, require particular prudence in considering it. No opinion of the RCL, insufficient time to prepare a reliable opinion by the Legislative Office, numerous comments, proposals for changes in the social side, organizations, creation, but also government institutions indicate enormous emotions and the importance of this project – Cichoń pointed out.

– With the pace of the proceedings as you propose, we are not able to keep this prudence – added the MP of KO. There were 19 MPs in favor of postponing the committee meeting, 24 against.

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Tax credit for large families

Among the few amendments that have been accepted by the committee so far, there is one that introduces discount for families with 4 and more children. The amendment was proposed by MP Włodzimierz Tomaszewski from the PiS club, but its operation was explained by Jan Sarnowski, deputy finance minister.

– The essence of the amendment is that parents with at least 4 children will have an additional deduction of PLN 85,000, i.e. the same as in the case of PIT for young people. If the parents settle accounts on the scale, PLN 85,000 is added to the free amount of PLN 30,000, which gives a deduction of PLN 115,000 for each parent. Importantly, this relief applies not only to people who pay taxes on general terms, but also to those who pay flat tax or lump-sum tax – Sarnowski said.

As he said, the cost of this relief for the budget will be over PLN 300 million, and 110 thousand will benefit from it. taxpayers, i.e. approx. 55 thousand. families.

A single parent. PIT changes are coming

The Commission also adopted an amendment changing the accounting rules for single parents. Currently, tax for a single parent is calculated as twice the tax calculated on half of the income. As MP Dominika Chorosińska from PiS said, due to the increase in the tax-free amount, this solution would give more benefits to single parents than to married parents. She proposed to abolish this rule and introduce a tax relief for a single parent’s child in the amount of PLN 1,500.

In response, Izabela Leszczyna from KO asked Deputy Minister of Finance Jan Sarnowski whether the implementation of this amendment would worsen the financial situation of single mothers. – I do not want to believe that someone can submit such an amendment – she emphasized.

Later on Twitter, the deputy and former deputy finance minister wrote that PiS MPs had thrown an amendment to the bill “which will worsen the situation of single mothers”.

The matter was also commented on by Paulina Henning-Kloska from the Polska 2050 Circle. “PiS eliminates the possibility of joint accounts of single parents with children! Prime Minister Morawiecki, what did single mothers do to you ?!” – she wrote.

Ministry on “divorces for tax purposes”

Ultimately, explanations regarding this amendment were provided by Mateusz Łakomy from the Ministry of Family and Social Policy. – The existing percentage relief in the amendment has been replaced with a quota relief. (…) on average, so far this deduction for single parents is PLN 1154, while the proposed amendment gives a deduction of PLN 1500 – he pointed out.

In his opinion, “for people with the lowest income, this is a slightly more favorable amendment”. – On the other hand, the intention of this amendment is to stop some negative phenomena related to the current solution, whereby people with the highest income benefit from not getting married or divorcing for tax purposes – said Łakomy. When asked about the source of information by opposition deputies, he said that “there are such experiences”.

The Commission accepted this proposal.

Main photo source: TVN24

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