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The Polish Deal brought major income-tax changes in 2022, affecting practically all thresholds. There are considerably fewer changes in 2023, mainly clarifying provisions and updating thresholds and limits.
Progressive income-tax thresholds
The final 2022 scale has a first threshold of PLN 120,000 at 12%, with a PLN 30,000 tax-free amount and a PLN 3,600 tax reduction. Above PLN 120,000, tax is PLN 10,800 plus 32% of the excess.
Since 2022, the health contribution cannot be deducted from this tax. No changes to progressive-scale thresholds are planned for 2023.
There are, however, changes to withholding. From 1 January, taxpayers with more than one payer can allocate the monthly reduction more freely, identifying up to three payers instead of one.
Each declaration specifies whether the payer reduces the advance by 1/12 of the annual reduction, PLN 300; 1/24, PLN 150; or 1/36, PLN 100.
The declarations can be made only if the combined monthly reduction does not exceed 1/12 of the annual amount and the taxpayer has not already used the full first-bracket reduction through a payer in the tax year, including where a request not to collect advances under Article 31c was made.
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Flat-rate income tax
There are no brackets in the same sense: businesses using flat-rate PIT always pay 19% and have no tax-free amount.
Part of the health contribution can be treated as a cost. In 2023, the limit is PLN 10,200, an increase of PLN 1,500, under the Finance Minister’s announcement of 12 December 2022, published in Monitor Polski on 19 December, item 1238.
Lump-sum tax changes
Limits rise for eligibility and quarterly payment. In 2023, the revenue limit is PLN 9,654,400, compared with PLN 9,188,200 in 2022, reflecting the EUR exchange rate of PLN 4.8272 on 3 October 2022.
Quarterly payment is available where 2022 revenue does not exceed PLN 965,440, or EUR 200,000, compared with the previous PLN 918,820.
Examples
A taxpayer’s 2022 revenue exceeded PLN 9,188,200 but remained below PLN 9,654,400. The taxpayer can therefore continue lump-sum taxation.
Another taxpayer’s 2022 revenue did not exceed PLN 965,440 and chooses quarterly settlement in 2023.
Those selecting quarterly payments based on their 2022 revenue do not have to notify the tax authority during 2023; they indicate the choice in the 2023 return.
From 1 January 2023, lump-sum tax is also the only form of taxation for private rental.
Accounting limits
Business owners using PIT must keep full books after exceeding statutory limits. The 2022 revenue threshold creating that obligation from 1 January 2023 is PLN 9,654,400. Below it, simplified accounting remains possible.
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Summary
The article describes a year of adjustments following the broader 2022 reform. The scale stays unchanged, while payer declarations, health-cost deductions and lump-sum or accounting limits affect practical settlements. Revenue from the previous year is important for several choices.
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