The Polish government has presented proposals for changes to the tax system that are intended to take effect from 2027. The proposed measures could benefit certain taxpayers while at the same time result in higher tax burdens for the wealthiest individuals, the largest businesses, and some companies currently taxed under the lump-sum regime.
Changes Beneficial to Taxpayers
Increase of the Tax Threshold to PLN 130,000
Currently, once a taxpayer’s income exceeds PLN 120,000, the taxpayer moves into the higher PIT tax bracket, with the tax rate increasing from 12% to 32%. The government intends to raise this threshold to PLN 130,000. As a result, some taxpayers subject to the progressive tax scale could pay slightly less tax next year.
New 24% PIT Rate
The government also plans to introduce an additional PIT rate. Income between PLN 130,000 and PLN 150,000 would be taxed at a rate of 24%, while income exceeding PLN 150,000 would be subject to the 32% rate.
In practice, Poland would once again have three personal income tax rates instead of the current two. The last time a similar system was in place was 18 years ago.
According to government estimates, approximately 3.5 million Polish taxpayers could benefit from the new measures.
Changes Unfavourable to Taxpayers and Businesses
Higher Solidarity Levy
The solidarity levy (solidarity tax) rate would increase from 4% to 5%. The change would apply to individuals earning very high incomes — exceeding PLN 1 million per year.
Higher CIT for the Largest Companies
The government also plans to increase the corporate income tax (CIT) rate from 19% to 22% for companies whose annual revenues exceed EUR 50 million.
Restrictions on Access to the Lump-Sum Tax Regime
One of the more significant proposals for businesses is to reduce the revenue threshold allowing taxpayers to use the lump-sum tax regime on registered revenue.
The threshold would be significantly reduced from the current EUR 2 million to EUR 250,000. This would mean that a big number of businesses with higher revenues could lose the right to use this form of taxation and would have to consider switching to another tax regime.
Summary
The proposed tax changes may have both positive and negative consequences. The greatest benefits are expected to be enjoyed by taxpayers subject to the progressive PIT scale, particularly those whose income exceeds the current PLN 120,000 threshold.
Higher tax burdens, on the other hand, could affect the wealthiest taxpayers, the largest businesses, and some companies currently using the lump-sum tax regime.
It should be emphasised that the above changes are currently only proposals. Their implementation will require the completion of the full legislative process, including the adoption of the relevant legislation by Parliament and its signing by the President of Poland. The final form of the changes may therefore differ from the proposals currently under consideration.
If you are interested in further developments regarding the proposed tax changes, their final form, or their potential impact on taxpayers and businesses, please feel free to contact our team.
