Higher taxes, smaller tax breaks. The government will rip off flat-rate renters and homebuyers
Someone must fill Poland’s record budget hole. The government plans to tax flat-rate taxpayers more heavily and limit the benefits of two reliefs – housing and IP Box.
Poland is currently one of the leaders in the European Union in terms of the rate of debt growth – public debt has exceeded PLN 2 trillion and this is not good news. In just one month it increased by PLN 47 billion. For the first time in history, this indicator exceeded the constitutional threshold of 60 percent, reaching 61.6 percent. GDP. We also have a historically record large budget hole – PLN 271.7 billion. Who will pay for it?
The government is preparing an order in taxes and tax reliefs, which will be of great importance for people on lump sum payments, for apartment buyers and for innovators. They are the ones who have to pay more to the budget, reports the “Rzeczpospolita” daily.
Tax preferences will shrink. The government looks at large revenues with a greedy eye
People who run a service business and do not employ at least one full-time employee for a full year will no longer pay 8.5%. tax. The government wants to tax the income of such people exceeding PLN 100,000 with a 15-percent tax. zloty. The same change will also apply to people who rent their property – privately and as part of their business.
In turn, persons who provide related entities with rights to intellectual property and similar assets, excluding works protected by copyright, will pay 17%. tax.
Innovators conducting research and development activities who currently benefit from the IP Box relief (taxation of income from qualified intellectual property rights at a preferential rate of 5%) will have additional burdens – the condition of employing at least three employees for a minimum of 300 days a year or cooperating with people achieving certain remuneration levels.
Investment in apartments is becoming less and less profitable. Housing relief limited again
The government consistently wants to discourage Poles from investing in apartments. The well-known housing relief is to be cut again, as its original purpose was only to make it easier for taxpayers to meet their own housing needs. However, a large number of people still buy several properties for investment purposes and repeatedly benefit from tax preferences, and this is about to change.
The right to benefit from the PIT exemption will be available only to those who have not benefited from this relief in the three years preceding the year of sale of the property.
If there is no objection from MPs, the changes proposed by the Ministry of Finance will enter into force very quickly – from January 1, 2027.
