Key changes in taxes. The second bill was submitted to the Sejm

This concerns the government's draft amendment to the Personal Income Tax Act, the Corporate Income Tax Act and the Act on flat-rate income tax on certain income earned by natural persons.

On Wednesday, information about the project being submitted to the Sejm appeared on the website of the Government Legislation Center. It was then reported that it had been sent to the Legislative Office for an opinion. According to the schedule of the Sejm sessions (before the meetings of the Presidium of the Sejm and the Council of Seniors), the first reading of the bill is scheduled for Thursday.

What does the project involve?

Basically, the new bill is identical to the act that has already been passed by the Sejm and which has passed the legislative path in the Senate. Last week, the bill returned to the Sejm, which should now vote on the Senate's amendments. However, doubts have arisen as to the constitutionality of these changes. The changes proposed by the government are intended to avoid these reservations, according to information obtained by the Polish Press Agency from a source close to the Ministry of Finance.

The project concerns changes in PIT tax rates and thresholds and an increase in the CIT rate and solidarity levy. Its goal is to increase the first tax threshold from PLN 120,000 to PLN 130,000. zloty. The rate below this threshold will remain at 12%. Moreover, it is proposed to introduce a new threshold covering incomes ranging from over PLN 130,000 to PLN 150,000. PLN with a rate of 24%. Income above PLN 150,000 PLN will be subject to a rate of 32%.

The project also introduces changes to the lump sum tax on recorded revenues. The income limit for electing lump-sum taxation will be reduced from EUR 2 million to EUR 250,000. euro. Moreover, it increases from 4 to 5 percent. the solidarity levy rate, which is charged on revenues exceeding PLN 1 million per year, as well as the CIT rate for companies with revenues exceeding EUR 50 million per month, is increased to 22%. with 19 percent Currently.

What is the problem with the Senate amendments?

During the work in the Sejm, a provision was introduced into the previous act, which provided for the annual indexation of tax thresholds, as well as the deletion of the provisions on the CIT increase for companies with revenues over EUR 50 million. The Senate then introduced amendments that, on the one hand, eliminate the indexation of tax thresholds, but also restore the increase in the CIT rate. However, Senate legislators have already indicated that restoring the CIT rate increase may be considered as the Senate going beyond the scope of the act passed by the Sejm and therefore may be considered unconstitutional.

As a result, the Ministry of Finance decided to resubmit the project in the version in which it was before the parliamentary amendments regarding CIT rates and thresholds. Moreover, the second government project introduced a provision according to which the provisions increasing the PIT income threshold come into force only together with the provisions on increasing CIT for large companies and a lump sum on recorded revenues.