[Poland] Polish Order 2.0 – preferences for employees with multiple jobs

Polish Order 2.0 is to allow people working for several employers to benefit from tax-reducing amounts on more favourable terms than at present. There will be a possibility to indicate up to 3 employers/payers in the PIT-2 declaration.

Up to 3 payers in PIT-2

The new version of Polish Order includes a number of tax preferences for taxpayers. One of the solutions provided in the draft amendment of the PIT Act is the option to submit a declaration concerning the reduction of the tax advance to two or three payers. This change is very beneficial, as nowadays, a person with multiple jobs may declare in the PIT-2 that the tax-reducing amount will be applied only by one employer.

The new rules of using a tax free amount for tax advances for persons with multiple jobs are to come into effect as from 1 January 2023. They assume authorization of up to 3 payers – employers, contracting parties and Social Insurance Institution (ZUS) to reduce advances for PIT by the amount of PLN 3 600, whereby the amount reducing the tax will amount as follows:

• one contract – 300 PLN,
• two contracts – 150 PLN each,
• three contracts – 100 PLN each.

It should be noted that as a result of the Polish Order, in 2022 the tax-free amount increased from PLN 8 000 to PLN 30 000.

Moreover, a taxpayer who receives earnings from more than one employer in a given month may file a PIT-2 declaration if:

• he/she has not used in the tax year the whole tax-reducing amount set out in the first threshold of the tax scale with a given employer/payer,
• the total amount of the reduction provided by all payers in a given month does not exceed 1/12 of the tax reducing amount.

It is also worth mentioning that with the changes in the PIT Act, the double obligation to calculate advance payments for 2022 will be lifted. Furthermore, if PIT advance payments are incorrectly collected due to wrong information provided by an employee, for example the employee submitted incorrect PIT-2 declarations in two workplaces, an employer will not bear liability on this account.

Learn more: Polish Order 2.0 – PIT reduction from 1 July 2022

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