Poland Property: How tax changes in Poland will affect spending power
Poland Property: How tax changes in Poland will affect spending power
25th September 2008
By Anna Grybel-Kloc
From 1st January 2009, personal income tax (PIT) rates in Poland will change. The current three tax brackets will be replaced by only two, lower rates.
Current PIT rates:
|
Tax Bracket
|
Tax Rate
|
|
Up to PLN44,490
|
19% minus an allowance of PLN586.85
|
|
PLN44,490 - PLN85,528
|
PLN7,866.25 (19% minus the allowance) + 30% on income exceeding PLN44,490
|
|
Over PLN85,528
|
PLN20,177.65 + 40% on income exceeding PLN85,528
|
PIT rates from 2009:
|
Tax Bracket
|
Tax Rate
|
|
Up to PLN85,528
|
18% minus allowance PLN556.02
|
|
Over PLN85,528
|
PLN14,839.02 + 32% on income exceeding PLN85,528
|
As we can clearly see, taxpayers in all brackets will benefit from the changes, but mostly the middle and high income earners. For the last two groups the reductions in tax rate are very significant, especially for taxpayers in 2nd bracket - they will pay only 18% tax instead of 30%. People, who now pay 40% tax, will pay 32% in 2009.
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