From next year, there will be a tax relief in PIT for families with at least four children. – The benefit increases with the increase in income – said Joanna Narkiewicz-Tarłowska, director of the employee tax and immigration services team at PwC Polska on TVN24 BiS. In her opinion, the purpose of this allowance is to encourage people to increase their income and to return to the labor market by non-working people.
As part of the Polish Tax Act, PIT-0 for four plus families will be introduced. – The relief is that a certain amount of our income will be exempt from taxation. This amount is PLN 85.5 thousand per year. The tax-exempt amount will be available to parents with at least four children, explained Joanna Narkiewicz-Tarłowska, director of the employee tax and immigration services team at PwC Polska on TVN24 BiS.
Relief for families with at least four children
Each of the parents in a family with at least 4 children will receive a deduction of PLN 85,000. PLN, which will increase the free amount in the amount of 30 thousand. zloty. This means that a parent who settles accounts on general terms will not pay PIT with an income up to PLN 115,528. In the case of joint settlement of the spouses, the amount without PIT will be PLN 231,056.
– Benefit increases as income increases. (…) It seems that the incentive of the state to increase income, to take up work, and to return to the labor market by those not working, is the purpose of this relief. Also, not only having more children, of course, is one of the goals, but also the second, that is, returning to the labor market, because these benefits will be greater as our income grows – pointed out Narkiewicz-Tarłowska.
PIT relief for four plus families. Calculations
The calculations prepared by Joanna Narkiewicz-Tarłowska show that for a parent who is in a partnership and earning 75 thousand. or 100 thousand zloty. gross annually, the benefit from the new tax relief in 2022, compared to the scenario, if such a tax relief would not apply next year, will amount to PLN 4,948.
In the case of married couples with a total income of PLN 200,000 gross annually, where both spouses work under an employment contract, the benefit from the new tax relief will be PLN 13,890. In the case of a slightly lower-income couple, each earning £ 75,000. PLN gross, i.e. a total of 150 thousand. PLN, the benefit will be PLN 9896.
– People who, for example, exceed the tax threshold, i.e. do not pay the 17% rate only 32 percent, will benefit more from this solution, because the tax exemption will be charged to them in a greater amount, because 32 percent out of 85 thousand instead of 17 percent, so here is the difference, which shows that the higher the income, the greater the benefit from such a tax relief – explained the director of the team for employee taxes and immigration services at PwC Poland.
In turn, married couples with a total income of PLN 100,000 zloty. gross annually, where only one spouse works, will earn PLN 1,846. – The benefit is much lower than the benefit we talked about earlier. This is due to the fact that these people will benefit to a greater extent from the existing allowances, i.e. the marriage settlement and the allowance for children – explained Narkiewicz-Tarłowska.
Families where only one spouse works and the total income is 75,000 PLN gross, they will not benefit from the new tax relief for four-plus families at all. – In the case of people with the lowest income in a marriage, if only one person works for such a large family and earns PLN 75,000, it turns out that they will not really benefit from the new tax relief for large families. Because they have already used the marriage settlement to a large extent and the relief for children, the expert pointed out.
– In fact, at the moment this income is not enough to take advantage of the next tax relief. The tax is still 0 zlotys, also here these people will not be a loss to any extent, but they will benefit from other discounts that have been available so far, and not from this new tax relief – added Joanna Narkiewicz-Tarłowska.
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