Lower PIT - how much will the employee earn? Since when?
From October 1, 2019, most of us will pay a lower PIT tax (on personal income). PIT tax reduction from 18 to 17 percent is the fulfillment of the promise of the PiS government. PIT in the first tax threshold, i.e. for all earners below PLN 85,528 gross annually, will amount to 17%. instead of 18 percent as before. Tax deductible costs will also increase, so we will pay PIT on the lower amount. The more affluent will also benefit from the reduction in PIT tax. Despite the fact that with income higher than PLN 7,127.30 per month, PIT tax will still amount to 32 percent. - it is paid at this rate only on income in excess of PLN 85,528 per year. All in all, the PIT payable tax will be lower. How much less will we pay PIT from 1 October 2019? Check the exact calculations: how much will the employee gain from the PIT reduction? The Parliament and Senate voted to reduce the PIT tax. The law assuming a lower PIT tax has just been signed by President Andrzej Duda.
From October 1, 2019, we will all pay lower taxes. The basic PIT rate (with income up to PLN 85,528) will be 17% instead of 18 percent. The tax deductible costs are also expected to double - so we will pay tax on a smaller amount, which will leave us with extra money in our pockets.
From October 1, 2019, we will all pay lower taxes. The basic PIT rate (with income up to PLN 85,528) will be 17% instead of 18 percent. The tax deductible costs are also expected to double - so we will pay tax on a smaller amount, which will leave us with extra money in our pockets.
PIT tax reduction: for whom?
In addition, in the case of people earning below the minimum wage, the tax-free amount will be higher. All this will mean that already in October those working on employment contracts, as well as mandate contracts and contracts for specific work, as well as entrepreneurs who have not chosen a flat tax and lump sum settlements will have more money. If? It depends on the amount of earnings.
Tax deductible costs depend on the professional situation of the employee. They are higher when the employee obtains income from multiple sources and also when he commutes to work. They are expected to more than double. The changes will look like this:
one-time employee, local: current tax deductible cost PLN 1,335 per year - from October 1 PLN 3,000 per year
one-time employee, commuter: current tax deductible cost: 1,668.72 - from October 1, PLN 3,600 per year
multi-job, locals: currently PLN 2,005.00 as of October 1 PLN 4,500 per year
multi-job, commuters: currently PLN 2,502.56 from October 1, PLN 5,400 per year
How will lower PIT affect employees' earnings? Let's count:
Jan Kowalski works one-time in his place of residence and receives a minimum salary of PLN 2,100 gross (PLN 1,530 net). tax on the tax base of PLN 1,701. From October, the tax base of his salary will be PLN 1,562 and he will pay 17 percent. tax. Thus, it gains about PLN 40 every month (about PLN 480 per year).
Maria Kaczmarek, who earns a gross job of PLN 7,000, currently receives PLN 4944 on her account. With tax deductible costs of PLN 250 instead of PLN 111.25 and tax of 17%. her net earnings will increase by about PLN 82, which means that she will gain around PLN 984 annually.
Those earning less than the national lowest will gain a lot. All because of the amounts that reduce the tax. The lower the income, the higher the sum will be. In practice, therefore, those earning up to PLN 8,000 gross a year (PLN 667 per month) will not pay tax at all.
2019 tax reduction - the amounts reducing PIT are:
PLN 1,360 - for the tax base not exceeding PLN 8,000;
PLN 1,360 reduced by the amount calculated according to the formula: PLN 834 PLN 88 x (tax base - PLN 8,000) - PLN 5,000 for the tax base higher than PLN 8,000 and not exceeding PLN 13,000;
PLN 525 12/12 - for the tax base higher than PLN 13,000 and not exceeding PLN 85,528;
PLN 525 12 gr less the amount calculated according to the formula: PLN 525 12 gr X (tax base - PLN 85 528) - PLN 41 472 for the tax base higher than PLN 85 528 and not exceeding PLN 127 000.
