4.01.2023 Labour law

[Poland] PIT for 2022 and middle class relief

The PIT return for 2022 should not include the middle class relief, but only the 12% tax rate valid from July. For some taxpayers, however, this option may prove less favourable than settling under the previous rules. In such cases, there will be an opportunity to recover the difference.

In 2023, PIT-36 and PIT-37 tax returns will be submitted by taxpayers between 15 February and 2 May, and income will be settled via the Your e-PIT service, just as last year. If no changes are made to the return by the taxpayer, the return will automatically be accepted on 2 May 2023.

However, 2022 was a unique year as major tax changes were made during the year. The middle class relief introduced in January ceased to apply at the beginning of July. At the same time, the basic PIT rate was reduced from 17 per cent to 12 per cent.

Hypothetical tax

Taxpayers filling in the PIT-36 and PIT-37 returns will not take into account the middle class relief, but only the rules in force from 1 July 2022. However, it may be the case that the new rules are less favourable than settling according to those in force in the first half of last year.

For this reason, the Ministry of Finance has introduced a temporary solution to compare the tax due for both options. For taxpayers who meet the following criteria, the tax office will automatically calculate a hypothetical tax due including the middle class relief:

  • the income reported in the return will range from PLN 68 412.00 to PLN 133 692.00,
  • the taxpayer submits a PIT-36 or PIT-37 return on an up-to-date form and chooses one of the following settlement methods – individually, jointly with a spouse, for single persons,
  • the taxpayer’s income is generated from a professional relationship, employment contract, outwork, co-operative employment relationship or non-agricultural economic activity.

If the hypothetical tax turns out to be lower than that reported in the return, then the tax office will, within 21 days after submission of the taxpayer’s return, send him/her information about the difference and indicate the amount to be refunded.

The difference will be refunded within 45 days for tax returns submitted electronically or within three months for tax returns submitted in paper form.

Moreover, if a taxpayer wishes to check whether a hypothetical tax might be more favourable to him or her on his or her own, the Ministry of Finance will provide a special calculator at podatki.gov.pl.

PIT 2022 – tax thresholds

It should be noted that in 2023, the tax for 2022 shall be calculated on the total annual income with a tax-free amount of PLN 30 000 and according to a tax scale with a rate:

  • in the first threshold of 12%, up to an amount not exceeding PLN 120 000,
  • in the second threshold, above PLN 120 000, of 32%.

PIT can be filed in both electronic and paper form. In 2022, up to 91 per cent of taxpayers in Poland

Read also: PIT-11 – new template form for 2022

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