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21-12-2016
PIT TAX SCALE AND TAX ADVANCE PAYMENTS IN 2017

From 1 January 2017 the following changes come into force:

1.    new tax scale,

2.    new rules of determining the tax reducing amount,

3.    new rules of determining the tax advance payments on income taxed under tax scale.

 

1.    NEW TAX SCALE

 

Income received from 1st of January 2017 will be taxed according to modified tax scale, which provides a higher tax burden for taxpayers obtaining annual income exceeding 85,528 PLN.

 

Taxable base in PLN

Tax due in PLN

over

up to

 

85.528

18%

less the amount reducing the tax

85.528

 

15.395,04  + 32% of the excess over 85.528

 

2.    New rules of determining the tax reducing amount

The tax reducing amount, to be deducted in annual tax return, will be determined depending on the amount of annual base of tax calculation. The following formula will apply:

 

Taxable base in PLN

Tax reducing amount in PLN in 2017

to 6.600

1.188

over 6.600 to 11.000

from 1.188 to 556,02

over 11.000 to 85.528

556,02

rver 85.528 to 127.000

from 556,02 to 0

over 127.000 zł

taxpayer is not entitled to the tax reducing amount

 

 

3.    Calculation of PIT tax advance payments during the tax year

 

For the purpose of the tax advance calculation:

·         in case of taxpayers whose income do not exceed the amount of 85.528 PLN – the tax reducing amount will be 556,02 PLN per year;

·         in case of taxpayers whose income exceed the amount of 85.528 PLN – the tax advances will be calculated without the tax reducing amount.

 

The above rule will refer to tax advances calculated on income from employment relationship as well as on income from business activity taxed according to the tax scale.

 

In the case of PIT advances on income from employment:

·         employer will be entitled to reduce the monthly tax advances by 1/12 of the tax reducing amount provided that the income of taxpayer does not exceed 85.528 PLN;

·         if the income exceeds the amount of 85.528 PLN, the employer shall calculate tax advances without deduction of the tax reducing amount;

·         the employer shall calculate tax advances without deduction of the tax reducing amount, regardless of the amount of income earned by the employee, if he receives from the employee a statement including information that anticipated annual income will exceed 85 528 PLN.

 

*****

Should you be interested in obtaining further information, or would like to discuss the impact of the above changes please contact:

Anna Misiak tel. + 48 22 322 68 88

or your tax advisor from MDDP.

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