Home » Business » PIT settlement 2022. Beware of traps and tricks. Can underpayment be avoided?

PIT settlement 2022. Beware of traps and tricks. Can underpayment be avoided?

Ministry of Finance hopes that the stupidities of the Polish Order have been largely rectified by the reform that entered into force from July 2022. He argues that the changes have even reduced the risk of large subsidies when settling PIT for 2022 and about a million taxpayers will have to do it, not two millions in previous years. In fact, it even calculated that some people in 2022 paid “too high” advances on tax PIT and in 2023 will receive a refund on this account.

So it seems that for the vast majority of people, the PIT settlement for 2022 will not be a source of financial drama. Still, there are a few problems and pitfalls to watch out for.

1. Lump sum holders can pay thousands of zlotys extra

Problems may include flat-rate entrepreneurs.

In 2022, the rules for calculating health contributions were completely changed, e.g. three rates of health insurance contributions for lump sums were introduced, depending on the level of annual income. Last year they were:

  • for annual revenues up to PLN 60,000 PLN – PLN 335.94 per month
  • between 60,000 PLN and 300 thousand PLN – PLN 559.89
  • over 300,000 PLN – PLN 1007.81.

The problem is that if someone did not “keep an eye on” the level of income at the end of the year and exceeded the limit of 60 or 300 thousand PLN, fell into a higher threshold. The jump from the first to the second threshold is a “cost” of nearly PLN 2.7 thousand. PLN, from the second to the third – almost 5.4 thousand. zloty.

It’s hard to do anything about it today. At the end of 2022, tax advisors for lump sums for border they advised, among others payment of ZUS contributions for December in December, and not in January as usual. In this way, thanks to the possibility of deducting contributions from income, it was possible to go below the income threshold. Unfortunately, it is very possible that some entrepreneurs will find out about the unpleasant obligation to pay extra only during the annual settlement.

  • Read more about the economy on the home page Gazeta.pl

When does the employer have to give the employee PIT? When do I need to file a tax return?

2. Changing the form of taxation? Carefully!

The confusion with the Polish Order – including changes in the profitability of various forms of business taxation during the year – meant that flat-rate taxpayers and entrepreneurs on a flat tax basis have the option of settling PIT for 2022 on general terms (i.e. the tax scale of 12/32%).

However, there are a few catches to watch out for, including: Business Insider Poland portal. Firstly, it may end badly for some lump-sumers to escape from the general rules by having to pay additional health insurance premiums. According to the website, instead of 5,000 PLN of overdue health premium entrepreneur with revenues of over PLN 300,000 PLN and low costs may have to pay extra … even 20,000 under general rules. PLN premium (as well as a tax surcharge).

Agnieszka Fijałkowska-Wocial, tax advisor at LTCA, returned w Business Insider Poland attention should also be paid to other pitfalls of changing the form of taxation. For example, the fact that if someone changed the lump sum to general rules during the year (there was such a possibility), he will not take advantage of such preferences of the new form of taxation as e.g. joint settlement with the spouse.

Basically, everything needs to be calculated and considered.

In order to decide to change, you should carefully recalculate your income and costs, and then compare your tax liability with the one that would occur if you chose taxation according to general rules

– recommend Lucyna Bluszcz and Sebastian Majek from the Tax Advisory Department of EY Polska.

3. May advance payments not be badly “rolled”

An unpleasant surprise can happen not only to entrepreneurs, but also to some people, e.g. in full-time jobs. Małgorzata Samborska, a partner and tax advisor from Grant Thornton, warned against it in “Studio Biznes” in Gazeta.pl. The point is that in the second half of 2022, the mechanism of rolling advances was no longer in force (thanks to it, people who did not benefit from the Polish Lada, PIT advances were frozen at the 2021 level until June)

Those who had a salary of up to PLN 12.8 thousand. In the first half of the year, they received advance payments in the amount not higher than the advance payment from 2021. It was only in the second half of the year that the new rules were applied. They may even have to pay extra tax in their annual tax return. There may be people who earn, for example, PLN 12.5 thousand. PLN – they should take into account the fact that they will pay the tax

Samborski said. In a word – it may happen that those who had “too low” tax advances paid in the first half of 2022 will now have to pay extra.

In an interview with “Gazeta Wyborcza” Samborska pointed out that people who changed jobs during the year, had more than one source of income, or had different income during the year should be especially vigilant.

After the change in regulations, payers did not have to recalculate our advance payment. The individual situation of taxpayers may therefore be different. Many people will have a tax refund at the end of the year, but there will also be subsidies

– explained the expert and added that the largest amounts of tax to be paid may be paid to persons whose annual income exceeded PLN 120,000. PLN and who changed jobs during the year.

This means that the “new” employer, when counting the advances, did not take into account the income earned by the “old” employer, so he used the limit for the tax threshold anew and charged the advance at the rate of 12 percent.

Samborska explained.

4. Here comes the hypothetical tax

An even bigger circus will be that the de facto PIT settlement for 2022 will be prepared according to two legal orders.

By default, we will fill in PITs according to the current rules applicable from July 2022. Such a settlement will also be available in the government application Your e-PIT. At the same time, however, the National Revenue Administration will calculate the so-called hypothetical tax, i.e. according to the rules from the first half of 2022 (lower PIT rate of 17 percent, relief for the middle class, etc.). If the hypothetical tax turns out to be lower than the one shown by the taxpayer in the tax return, the taxpayer will be refunded the difference.

As Małgorzata Samborska said in “Studio Biznes” at Gazeta.pl, she has so far identified one situation where the hypothetical tax may turn out to be lower – the confluence of relief for the middle class with 50% tax deductible costs. But there may be more such problems.

According to the Ministry of Finance, the hypothetical tax will be lower only in approx. 0.1 percent. cases. Time will tell if these estimates are correct. Even if they are, it still means that every thousandth person will pay too much tax (or will get too low overpayment) and the tax office will compensate them later – if it adds up.

Besides, if someone has limited trust in the Your e-PIT application and KAS calculations and would prefer to calculate the tax himself, he will simply have a task dramatically hindered by PiS. He will be forced to check his PIT against two tax systems.

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5. Some independent parents will no longer settle with the child

Before the tax changes of 2022, divorced persons (or unmarried persons) who chose the so-called joint custody of a child/children (i.e. parents share custody of their descendants) could be billed jointly with the child. Thanks to this, they could save on PIT.

From 2022, however, this is no longer possible. The Ministry of Finance cut this preference short, convincing e.g. that it was abused by parents remaining in informal relationships. In the PIT settlement for 2022, the possibility of joint settlement with the child will be available only to those parents who really take care of the child alone.

It is enough to compare the situation of a widow or a widower with the situation of people raising children alternately. In the first case, the effort of care, daily care and upbringing rests solely with one person, and in the second, this person has the support of the other parent

– argues the Ministry of Finance.

in PoznanTaxes. Some parents will no longer pay jointly with their child

6. It should be fine, and if it’s not – it’s hard to improve something today

There are probably more imps hidden in the Polish Lada, which are already rubbing their hands to reveal themselves in the PIT settlement for 2022. On the other hand, in principle, many people are affected by tax changes – e.g. a reduction in the PIT rate from 17 to 12 percent, an increase in the tax-free amount to PLN 30,000. PLN or the second tax threshold up to PLN 120,000. PLN – should be good or at least neutral.

You should also remember about tax reliefs, e.g. for children, for the Internet or for people who have returned to Poland. In the PIT settlement, you can also take advantage of the deduction from income for donations or amounts paid to Individual Pension Security Accounts – but of course only those paid in 2022. Whoever pays them now will be able to deduct them only in the settlement for the year.

It is also worth remembering about new tax preferences from 2022. First of all, it is PIT-0, i.e. a solution for people who, despite reaching the retirement age, have not yet decided to collect benefits from ZUS. Income up to PLN 85,528 per year is exempt from tax, and for income above PLN 30,000 applies. zloty. This means that PIT-0 applies to income up to approx. PLN 115.5 thousand. zloty.

Secondly, it is a relief for parents with at least four children. It assumes the exemption from taxation of revenues of approx. 85.5 thousand. PLN per year for each parent.

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What, how and when to settle, what to watch out for, what changes in tax law have come into force and what are being prepared? Read more about these topics at the following link: next.gazeta.pl/podatki

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