Tax customs & excise

Increased tax deductible costs for individuals and reduced PIT rate to 17% in explanations of the Minister of Finance

Increased tax deductible costs in PIT

When calculating PIT advance payments, PIT payers should take into account new increased tax deductible costs in October (from PLN 111.25 to PLN 250 and from PLN 139.06 to PLN 300). At the same time, the annual limits for such costs were increased so that the increased rates from the amendment were taken into account. It is also important that the increased costs should also be applied to revenues from activities carried out personally, such as: for performing social or civic duties, appointment to boards, supervisory boards, committees or other bodies constituting persons, business management agreements, managerial contracts or similar contracts. The new rates also apply to revenues for which taxpayers are obliged to calculate advances on their own, i.e. from an employment relationship from abroad, due to the appointment to the boards, supervisory boards, committees or other bodies constituting legal entities, from business management contracts , managerial contracts or similar contracts.

17% rate in PIT

The new 17% rate also applies to revenues from non-agricultural business activity if the taxpayer has chosen the „general” tax scale. With the same, from the transitional period, i.e. from October to December 2019, when calculating income tax advances, they apply a „transitional” rate of 17.75%. The same rate applies to the cash refund, which can be obtained in connection with the application of the R&D discount. Of course, this applies to taxpayers – entrepreneurs who have chosen the „general tax scale”.

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