May 2023
Summary
The Sejm adopted regulations regarding the Slim Vat 3 package, which introduce changes to the Personal Income Tax Act and the Inheritance and Gift Tax Act. The Senate is currently working on the bill. The new regulations are to come into force, as a rule, from July 1, 2023.
The introduction of changes in the field of personal income tax and inheritance and donation tax is aimed at eliminating problems arising from the already introduced act, the so-called deregulation and is also intended to support the development of the capital market in Poland. The new regulations increase the limits of the amount free from inheritance and gift tax. The Personal Income Tax Act takes into account the demands of investors and provides for favorable changes for people who do not conduct business activity.
The most important proposals for changes
Amounts exempt from inheritance and donation tax will increase almost 3.5 times for persons from the 1st and 2nd tax group (family). In relation to persons from the 1st tax group, the tax-free amount per person will increase from PLN 10,434 to PLN 36,120, and for persons from the 2nd tax group, this amount will increase from PLN 7,878 to PLN 27,090. The tax-free amount for persons belonging to the third tax group (people from outside the family) will increase slightly – from PLN 5,308 to PLN 5,733.
The amendment will enable spouses renting an apartment to pay the tax office 12.5% of the lump sum on income only after exceeding the amount of PLN 200,000. PLN – regardless of whether they will settle separately or decide to tax the income in full by one of them. The current limit was 100,000. zloty.
Currently, income and losses from the sale of shares and investment funds are treated as capital gains and are taxed at the rate of 19%. PIT. So far, the act required them to be settled separately, which meant that losses from one fund (e.g. equity fund) with income generated under another fund (e.g. debt securities) could not be offset. The amendment to the regulations will make it possible, for example, to offset profits from shares with losses from investment funds (including foreign funds). As a result of the compensation, it will be possible to reduce the PIT payable, moreover, the unused loss in a given year can be settled over the next 5 years. The above changes are to apply from 1 January 2024.
Under the current legal status, spouses with one child and reaching a total annual income of up to PLN 112,000 may deduct PLN 1,112.04 per year when settling PIT. The above also applies to spouses with a disabled child. The planned amendment will enable spouses with one disabled child to deduct the relief regardless of their income in the year.
So far, grandparents raising a disabled grandchild, as well as a grandson taking care of disabled grandparents, could not take advantage of the rehabilitation relief. The amendment to the regulations will also enable the above-mentioned persons to benefit from the relief.
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We are happy to help you understand the scope and impact of the upcoming rules on your tax matters regarding tax returns and donations and their impact on employers.
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