Poland Plans Middle-Class Tax Cut and Higher Levy on Big Companies
The package would raise taxes on large companies to offset relief for middle earners, and officials said it should leave the budget roughly unchanged.
- On Wednesday, August 19, Prime Minister Donald Tusk announced a plan to raise the personal income tax threshold to PLN130,000 from PLN120,000, aiming to lower taxes for middle earners by 2027.
- The Finance Ministry reports the PIT threshold has been frozen since 2022, pushing an estimated 11% of taxpayers into the 32% bracket despite rapid wage growth during that period.
- A new 24% tax rate will apply to income between PLN130,000 and PLN150,000, while the standard corporate income tax rate rises to 22% from 19% for companies with revenue above €50mn.
- Finance Minister Andrzej Domański stated the package is "probably" the first tax change in years that would not cost the budget, though the Law and Justice party countered with a PLN180,000 threshold proposal.
- The legislation requires parliamentary approval and President Karol Nawrocki's signature; Nawrocki has repeatedly opposed tax increases and the coalition lacks the three-fifths majority to override a potential veto.
16 Articles
16 Articles
Poland to lower personal income taxes, raise tax rate for biggest companies
Poland plans to change parts of its income tax system in a move that Prime Minister Donald Tusk, who came to power on a ticket to lower taxes, said on Wednesday would benefit around 3.5 million taxpayers.
Poland Plans Middle-Class Tax Overhaul Ahead of Election as Bracket Creep Bites
Prime Minister Donald Tusk plans to overhaul income taxes to ease the burden on Poland’s urban middle class, moving to deliver on a campaign pledge ahead of next year’s elections, while seeking to finance the cuts with higher levies on companies.
Tusk announced at a press conference on Wednesday that, together with Minister of Finance and Economy Andrzej Domański, he had prepared proposals for tax changes that would take effect in 2027. According to the Prime Minister, 3.5 million taxpayers would benefit from them. One of the proposed solutions is to raise the second tax bracket from the current PLN 120,000 to PLN 130,000. Income between PLN 130,000 and PLN 150,000 would be subject to a …
The package also includes a 1% increase in a solidarity fee.
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