Due to the entry into force of tax changes from the Polish Order, the PIT-2 statement became famous. – So far, the problem with PIT-2 has practically not existed – said Anna Misiak, head of the personal tax and employer advisory team, MDDP, on TVN24. As a rule, the form is usually submitted by the employee at the time of employment. Misiak explained who can file a PIT-2 declaration now, and what the middle class tax relief is about.
The Ministry of Finance has published a 64-page manual with information about the main tax changes from the Polish Order, as of January 14, 2022.
On January 1, the tax regulations of the Polish Order entered into force
– It is a very big challenge to find all over Polish Lada. I do not remember so far, and I have been dealing with taxes for over 20 years, that such a thorough reform would be introduced that completely changed the system of calculating personal income tax. This is also a great surprise for many people who deal with payroll and human resources, on whose shoulders today the obligation to correctly calculate salaries – commented Anna Misiak, head of the personal tax and employer advisory team, MDDP.
– What has been prepared is not well prepared and requires enormous effort to put it all in order and straighten it out – she added. After the tax changes from the Polish Order came into force, incl. the tax-free amount increased to PLN 30 thousand, and the tax threshold to PLN 120 thousand. At the same time, the tax deduction for health contributions has disappeared.
PIT-2 form – what is it for?
One of the elements of the Polish Governance is the increase in the tax-free amount. It applies only to taxpayers who settle income shown on PIT-36 or PIT-37 taxed according to the tax scale, i.e. for example people employed full-time or on the basis of a mandate contract. From 2022, the tax-free amount is PLN 30,000, a tax reducing amount – PLN 425 per month. Last year it was PLN 43.76 per month. This change is linked to the PIT-2 form, on which the employee submits an application to include the free amount during the tax year. As a result, the monthly wage is higher.
– The problem with PIT-2 has not existed so far. Employees who took up employment in a given establishment most often received a package of various declarations, including PIT-2, which may apply when we want to authorize the workplace to apply the tax-reducing amount. This tax-reducing amount has so far been small and was basically applied to the income of PLN 120,000, it was PLN 43. However, since this year, the tax-free amount has increased and the amount reducing the tax has significantly increased and amounts to PLN 425 – Misiak pointed out.
In recent days, some employees receive information from the HR department whether the employee has submitted a PIT-2 declaration. If so, it is possible to withdraw the declaration. What are we to do in such a situation? – If someone has not yet submitted their PIT-2, they should analyze their situation, i.e. whether they have the right to indicate this payer as the only one to deduct this amount 425 zlotys – explained Anna Misiak.
It is about people who work several jobs. – If someone works several jobs, he will not be able to indicate each payer as entitled, because the regulation clearly states that you must indicate a specific payer to apply this amount – she explained. The exempt amount can only be applied to one source of income.
– If someone works only in one entity, I advise you to quickly check with the human resources and payroll department whether the PIT-2 declaration has been submitted, if not, then you simply have to submit it – added Anna Misiak.
On the other hand, if someone receives a pension, ZUS generally applies this tax-reducing amount. Misiak pointed out that the Department’s website published a statement that ZUS may be informed that ZUS may not be allowed to reduce this amount. – This is for use by people who receive retirement benefits and have an employment relationship – she pointed out.
In addition, as Misiak explained, the declaration also cannot be submitted “by persons who have an individual business activity taxed on general principles, i.e. according to the scale, because they also use this tax-free amount when calculating advances on revenues from business activities. “.
A relief for the middle class
The Tax Act of the Polish Order introduced the so-called middle class relief. It is to concern, inter alia, full-time employees achieving annual revenues from employment contracts in the range from PLN 68,412 to PLN 133,692. Thanks to this – as previously assured by the Ministry of Finance – the reform is to be neutral for this group of taxpayers. In principle, the tax relief is to limit the negative effects of changes in the health insurance contribution for employees from this income group.
– The amount of this relief reduces the tax base on which the advance tax is calculated during the year. This middle class relief will be recalculated at the end of the year. It is provided only for a certain range of earnings – noted Anna Misiak.
– If someone’s annual earnings are below this amount (PLN 68,412 – ed.), The middle class tax relief will not be applied. If they are above this amount (PLN 133,692 – ed.), The middle class relief will also not be applied – she added. Such a situation will also take place even if we are below or exceed the threshold by PLN 1. “The relief is applied to a specific range,” she explained. This means that “there will be no mechanism in place that would allow for a slight mitigation of the non-deductibility of the health insurance contribution”.
So far, the health insurance premium was 9 percent. salary (after deducting the amount of contributions for retirement, disability and sickness insurance), but 7.75%. part of the contribution was tax deductible. The Act abolished this deduction.
– The relief for the middle class was meant to ensure that in this range, if not for this relief, people would start to lose because there is no longer a deductible health insurance contribution – explained Misiak. Although, she added, “the mere change in the tax threshold from 85,528 to 120,000 makes the pain of non-deductibility of health insurance contributions slightly less, because we simply pay longer advances according to 17 percent.”
Main photo source: TVN