Reduced PIT to 17% for employees and increased tax deductible costs for employees from October

From October 1, 2019, a reduced (17%) rate in PIT will apply, while increasing tax deductible costs for employees:

• PLN 250 monthly (one-time employees) currently PLN 111.25,
• PLN 300 monthly (one-time employees, commuters) currently PLN 139.06,
• PLN 3,000 annually (one-time employees) currently PLN 1,335.00,
• PLN 3,600 annually (one-time employees, commuters) currently PLN 1,666.72,
• PLN 4,500 annually (multi-employees) currently PLN 2,002.05,
• PLN 5,400 annually (multi-employed, commuters) currently PLN 2,502.56.

For PIT payers (i.e. employers), this may cause complications related to changes in rates and costs during the tax year. Therefore, specific ‘transitional provisions’ were introduced, regulating the payment of advances for PIT from October to December 2019. Pursuant to Article 5 of the Act introducing a reduced PIT, the reduced rate for the entire 2019 will be 17.75%, while pursuant to Article 6, to the advance payment from October to December 2019, payers will apply the rate of 17%, unless the taxpayer applies for the rate 17,75%, and the amount reducing the tax will be 525.12 PLN.