2018 brought to Poland numerous changes concerning tax exemption limits, tax-free income, social security and health insurance payments.
If you are doing business in more countries from CEE you might be interested also to check our “Summary of the most significant changes affecting employment taxation in 5 CEE countries, 2018” .
Higher limits of tax exemption
Benefits in kind and cash financed from companies’ Social Fund (ZFŚS) are exempt from PIT up to 1,000 PLN (before 380 PLN). Allowances received in connection with individual random incidents, natural disasters, long-term illness or death financed from companies’ Social Fund are exempt without a limit, or from other sources up to PLN 6,000 (before PLN 2,280). Support for organized recreation for children, financed from funds other than the social fund, are exempt up to 2,000 PLN (before 760 PLN). Winnings in competitions and games as well as prizes related to bonus sales are exempt up to PLN 2,000 (before PLN 760).
New amount of tax-free income
As of January 1st 2018, the tax-free income has been increased from PLN 6,600 to PLN 8,000. At the same time, the new regulation maintained the degressive amount which reduces the tax on the taxable base not exceeding PLN 127,000. The tax reduction amount will be gradually reduced to PLN 0 when the taxpayer reaches an income of PLN 127,000.
Increase of the minimum wage
The minimum wage increased from PLN 2,000 to PLN 2,100 gross and the minimum hourly rate for specific civil law contracts increased from PLN 13.00 to PLN 13.70.
Social security and health insurance payments
Social security, health and Labour Fund/FGSP contributions are paid by one bank transfer to a new bank account, it’s abolish the so far practice of making several separate transfers. Each payer should receive his own an individual contribution account number in ZUS.