The year 2025 will bring major changes in the taxation system, which can importantly affect the portfolios of many Poles. According to government announcements, the tax-free amount in the PIT will not be doubled as originally planned, but only Valorised for inflation. That means people with lower incomes, especially seniors and well-earned workers, they will gotta face higher taxation burdens.
Valorised tax-free amount – what will the consequences be?
The tax-free amount is the most crucial change announced in the Polish Łada for 2025. Initially, the government wanted to double this amount to reduce the taxation burden on people with lower incomes. Unfortunately, due to rising inflation, the amount free will not increase to the assumed value of PLN 60,000, and alternatively only Valorised by inflation rate.
According to forecasts, inflation in Poland in 2024 is about 14%, which means that the free amount will only increase by PLN 8,400, so in 2025 it will amount to around PLN 38,000. As a result, those who gain below this amount will inactive be able to anticipate no taxation burden. However, for seniorswho have been released from PIT in the last 2 years, the change will have tremendous consequences.
Seniors and pensioners – fresh reality at PIT 2025
Previous years seniors with a pension below PLN 2,500 were exempt from income tax, thanks to the so-called. "zero PIT" for seniors. In 2025, this relief will disappear, and millions of pensioners who have not paid the taxation over the last 2 years will abruptly become his contributors.
Pensioners who receive benefits above PLN 2,500 will gotta face taxation. Moreover, any of them can see a crucial increase in loads. An example? Senior, who receives a pension of PLN 3,000 per month, will not only start paying income tax, but additionally as a consequence of an increase in taxation rates, its taxation burden can amount to as much as PLN 400-500 per year. For many people it is simply a crucial amount that will affect their regular lives.
Good earner – higher loads at all stage
The change in PIT 2025 will besides affect people with higher incomes. presently people earning over PLN 120,000 a year pay tax of 12% up to PLN 120 000 and above this amount the rate is 32%. In 2025, due to the planned changes in the system, the taxation rate for the best paid workers will emergence to 32% from each increase.
This means that the individual who receives an increase of PLN 100 per period will not only pay PLN 12 taxation as at present, but as much as PLN 32, which translates into a crucial increase in labour costs for people employed in advanced jobs. Profit from the increase will be reduced by over 20 PLN. This is simply a crucial change that will affect decisions about increases in companies and individual financial decisions of employees.
Increased burden at all phase of the career
People who presently gain up to PLN 120,000 a year, so they are in the so-called. first taxation rate, they will not save on changes in PIT 2025. The vast majority of people in this group gain between PLN 4 000-10 000 per month, which gives yearly income from PLN 48,000 to PLN 120 000. As a consequence of the introduction of higher rates for increases, a individual earning PLN 8,000 per period will lose a crucial part of his earnings, as the taxation on each increase will be 32%. In practice, this means that they will feel little of an increase than before.
What about taxation breaks?
Changes in PIT 2025 besides include a different approach to taxation relief. Although the government envisages maintaining kid relief or net relief, Relief for monuments and another reliefs for the elderly will be importantly reduced. Seniors who have so far benefited from specified preferences may encounter their restrictions or complete elimination. This is another bad news for pensioners who will be burdened with higher costs of living.
When will change take effect?
The amendments to PIT 2025 will enter into force on 1 January 2025. These changes will apply to both employed and receiving pension benefits. It should be remembered that the government is announcing gradual change, which means that initially changes will only apply to people with higher incomes. In the following years the changes will besides include people with lower incomes, including pensioners who will gotta pay tax.
Changes in PIT 2025 will have serious consequences for the portfolios of Poles, especially seniors and people with higher incomes. The government must find a way to minimise the effects of these changes, especially for the most deprived.
Continued here:
Changes in PIT 2025. More will be paid by seniors and earners
