In connection with the entry into force of the Polish Agreement, some employers submit tax declarations and declarations to their employees for possible completion. It is about PIT-2, but also the application for not taking into account the tax relief for the middle class or information about the joint settlement of the spouses. Their completion may be important before the January payout.
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PIT-2
One of the documents to be filled in before the first payment in 2022 is PIT-2. Of course, if we didn’t fill it in before, because the declaration has been in use for a long time. PIT-2 is a form in which the taxpayer submits an application to take into account the free amount during the tax year, thanks to which the monthly wage is higher. Even last year, with a much lower tax-free amount, tax advances were low, so many employees did not notice the impact of PIT-2 on wages. However, the situation changed in 2022 – due to the increase in the free amount to 30,000. PLN and simultaneous changes in the rules of paying contributions.
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DOWNLOAD THE NEW VERSION OF PIT-2
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Along with the increase in the tax exempt amount, the amount decreasing the tax advance also increased. Last year it was PLN 43.76 per month. From January 1, 2022, it is almost 10 times more – i.e. PLN 425 (1/12 of PLN 5,100). Let us add that even if PIT-2 had not been submitted, the employee would not lose the right to use the exempt amount. It would be included in the annual tax return and the taxpayer would withhold a tax refund.
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Importantly, in the case of people working in two jobs, PIT-2 can be submitted to one employer and he will take into account the new, higher tax-free amount (for the other, the salary will be lower than in December). The amount free in the case of retirees and disability pensioners who earn extra work is calculated by the Social Insurance Institution (here again, the remuneration on a full-time job will be lower).
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The problem with PIT-2 “so far has basically not existed”. Who can submit the declaration? >>>
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At the same time, some confusion as to whether or not to submit a PIT-2 was introduced by the latest ordinance of the Minister of Finance on advance payments for PIT. On the air of Polish Radio, the Minister of Finance, Tadeusz Kościński, said that after this change “no matter whether the taxpayer submitted PIT-2 or not, he would still be settled in installments throughout the year”. The regulation – as Marek Kolibski, tax advisor and partner at Kolibski, Nikończyk, Dec & Partnerzy, explained in response to TVN24 Biznes’s questions – requires accountants to calculate each advance tax twice: according to the rules from this year and according to the rules from last year that are not binding. Then choose the lower result.
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A relief for the middle class
A relief for the middle class it was supposed to be a way to compensate a large group of employees for the negative effects of changes in the health contribution introduced by the Polish Government. New-time employees and entrepreneurs paying taxes on the tax scale are a relief. Condition – their annual revenues must be in the range from PLN 68,412 to PLN 133,692. This means a salary of a level from PLN 5,701 to PLN 11,141 gross per month.
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According to the act, it should be as follows: the middle class allowance is calculated automatically, unless the employee submits a request to the employer not to take it into account. Why would he put it together? It is enough that he exceeds the threshold by PLN 1 and loses the right to a discount, which entails the necessity to return the money – even PLN 2,287 (the maximum profit from the relief for the middle class is PLN 190.5 per month). And the reasons for unexpectedly exceeding the annual earnings thresholds can be different – on the one hand, losing your job (which reduces your income), and on the other, for example, a bonus or reward (which, in turn, increases your income).
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Therefore, earlier tax experts pointed out that it is worth considering submitting an application to the employer not to take into account the middle class tax relief. If we were in the revenue range from PLN 68,412 to PLN 133,692 at the end of the year, we would simply get a tax refund.
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As in the case of PIT-2, doubts regarding the application for not considering the tax relief arose in connection with the new regulation of the Minister of Finance. – Currently submitting statements not to take into account middle class tax relief makes little sense – assessed Marek Kolibski. It is about calculating the PIT advance according to the old rules.
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MODEL APPLICATION FOR NO MEDIUM CLASS RELIEF >>>
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PIT-0 for a working senior
The new tax relief for working seniors (the so-called PIT-0 for pensioners), introduced as part of the Polish Order and effective from January, consists in exemption from personal income tax of certain revenues of taxpayers who – despite reaching the general retirement age – will still be professionally active .
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Importantly – and this is emphasized by the Ministry of Finance – if the taxpayer interested in PIT-0 for the pensioner obtains income from full-time work or from a mandate contract concluded with the company, so that the employer or the principal can apply the relief, he should submit an appropriate declaration.
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Pensioners and the Polish Order. These people “in principle could not have collected tax at all” >>>
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There is no official model for a declaration of relief for a working senior citizen (you can edit it or use an example template). They must be submitted in writing. In the statement, we inform that we meet the conditions for applying the discount. At the same time, the declaration must include the following clause: “I am aware of the criminal liability for submitting a false statement” – this clause replaces the instruction of the authority on criminal liability for submitting false statements.
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DOWNLOAD THE MODEL STATEMENT – RELIEF FOR WORKING SENIORS >>>
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PIT-0 for families 4+
One of the solutions of the Polish Deal is the so-called discount for families 4+. Pursuant to the regulations, income up to PLN 85,528 is exempt from income tax if the taxpayer is a parent of at least four children.
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The income tax exemption of up to PLN 85,528 can be counted on by a taxpayer (each parent) who in a given tax year exercised parental authority in relation to at least four children, performed the function of a legal guardian, if the child lived with him or performed a function a foster family on the basis of a court decision or an agreement concluded with the staroste. On the other hand, in the case of adult children who are still in education – if they performed the maintenance obligation imposed on them or acted as a foster family.
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As the Ministry of Finance explains, in order for the employer or the client to apply the 4+ family allowance when calculating the tax advance, an appropriate declaration must be submitted in writing. There is no official model for the declaration. However, the ministry presented an example version of it.
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DOWNLOAD THE TEMPLATE OF THE DECLARATION – RELIEF FOR FAMILIES 4+ >>>
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Joint settlement of the spouses
We can also fill out a form in which we declare that we will jointly settle accounts with our spouse. This may be important when we exceed the tax threshold (PLN 120,000 of revenue per year). In such a situation, we would be charged tax at a higher rate on every zloty over PLN 120,000 – 32 percent. (up to this threshold of 17%).
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Joint filing – if the other spouse’s income is below the income threshold mentioned earlier – reduces the tax rate on all our joint income (divided by two) to 17%. If we complete the declaration, the tax at the lower rate will be levied throughout the year.
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Relief to come back
The relief for the return is aimed at Poles who live abroad and is intended to encourage them to return to Poland. Polish citizens and people with a Pole’s Card who have lived and worked abroad for at least three years and who decide to return to the country will benefit from the relief and will pay a lower income tax for four years after returning to Poland.
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“The new formula for the return relief provides for a quota exemption for the income of eligible persons. The right to the relief will be granted in four consecutive tax years, counting from the year in which the taxpayer moved his place of residence to Poland or from the following year. the amounts of PLN 85,528 will be exempt from PIT “- explains PwC.
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It was added that “persons entitled to take advantage of the relief will be able to reduce their PIT by more than PLN 27,000 per year (in the case of taxpayers with income taxed at the rate of 32%), and the total benefit for all 4 years of applying the relief may even exceed 109 thousand PLN “.
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photo-source">Main photo source: TVN24
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