Project to reduce PIT and double tax deductible costs from 2020

According to the draft law on which the Council of Ministers is working, the lowest PIT rate is to be reduced from 18% to 17% from January 1, 2020. At the same time, it is planned to double the tax deductible costs.

If changes enter into force, about 25 million taxpayers will benefit from the PIT rate reduction. For persons with income exceeding PLN 85,528 per year, the existing PIT rate of 32% will be maintained.

Currently, the basic employee tax deductible costs amount to PLN 111.25 per month and no more than PLN 1,335 per year. After the changes, the amounts will increase to PLN 250 and PLN 3,000 per year, respectively.

Annual tax deductible cost Currently Rates planned from
1 January 2020
Basic rate 1335,00 3 000
Rate for commuters 1668,72 3 600
Rate for persons with more than 1 job 2 002,05 4 500
Rate for commuters persons with more than 1 job 2 502,56 5 400

Both amendments will apply to revenue accruing from 1 January 2020.

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