Polish New Deal and tax legislation changes

Monika Spotowska

17 May 2021

The so-called Polish New Deal was presented on 15 May 2021. The program covers 10 most important aspects of social life. One major program component is the “tax reset” which overhauls mainly PIT.

The key tax legislation changes:

• personal exemption amount increased to 30 thousand zloty;
• tax threshold increased from 85 thousand zloty to 120 thousand zloty;
• PIT relief for return migrants;
• legislation on remote work;
• restricted use of “junk contracts”;
• non-tax-deductibility of health insurance contributions;
• no flat rate health insurance contributions for self-employed;
• tax exemption for retirees who decide to stay on the labour market;
• tax relief for automation & robotisation as well as prototypes.

These are just a handful of the New Deal proposals. Some of them are good, but there is also a number of taxpayer-unfriendly changes.