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Thirteenth pension 2023. What about tax. The Ministry of Finance is responsible

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The thirteenth pension will also be paid in 2023. Last year, the Ministry of Finance issued an ordinance on discontinuing the collection of income tax on the additional annual benefit, as the thirteenth pension is formally called. Will it be the same this year? We have the ministry’s response.

President Andrzej Duda last week he signed the 2023 budget act. The planned expenses included: so-called thirteenth pension. It has been paid since 2019. From 2020 it is guaranteed by law. You do not need to submit any applications to receive the additional benefit.

Thirteenth retirement 2023

thirteenth pension as a rule, they are paid in April together with the ordinary old-age or disability pension. Pursuant to the regulations, the thirteens are paid – regardless of the amount of the main benefit – in the amount of the lowest old-age pension applicable from 1 March of the year in which the additional benefit is paid.

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From March 1, 2023, the lowest pension will increase from PLN 1,388.44 gross (PLN 1,218 net) to PLN 1,588.44 gross (PLN 1,445 net).

Read also: This is how much the indexation of pensions in 2023 is to be. Calculations

What about tax on the 13th pension? Ministry of Finance “is not working on issuing a regulation”

“The thirteenth pension due for 2022 under the Regulation of the Minister of Finance of March 7, 2022 on discontinuing the collection of personal income tax on the additional annual cash benefit (Journal of Laws, item 556) – was not subject to taxation” – reminded Ministry of Finance in response sent to TVN24 Biznes.

The Ministry of Finance informed that “currently, the Ministry of Finance is not working on issuing a regulation on discontinuing the collection of income tax on the above-mentioned benefits paid in 2023”.

This issue is important for people whose basic benefit, including the thirteenth old-age pension, will exceed PLN 2,500 gross. Benefits up to this level, due to the increase in the free amount from January 2022, are in practice exempt from personal income tax.

In the justification to last year’s draft regulation, the Ministry of Finance explained that exceeding this threshold (PLN 2,500) “as a consequence (for this one month) will result in the obligation to collect an advance tax from the pensioner, despite the fact that the taxpayer’s annual income will not exceed PLN 30,000. “.

An additional benefit is available to persons who are entitled to benefits specified in the Act on 31 March.

Main photo source: Shutterstock

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