The Ministry of Finance has released its report on last year’s PIT settlements. It shows, among other things, which tax breaks we use the most.
In 2023, more than 25.5 million taxpayers in Poland calculated PIT (personal income tax) according to general principles – according to “Information on income tax calculations for 2023” published by the Ministry of Finance. The absolute majority, 24.2 million people (94.8 percent) are covered by 12 percent. The rate of PIT and in the case of 5.2 percent. an additional rate of 32% applies to income over PLN 120,000. PLN per year.
The government study also includes information on the most common ways to reduce taxes.
The most common tax benefits
About 8.7 million taxpayers took advantage of the option to file joint tax returns for married couples. The most common situation in which joint PIT settlements are beneficial is when there is a large income disparity between the spouses or the lack of income for one of them. Thanks to the joint settlement with the spouse, a person who earns more than 120,000 PLN per year can avoid paying tax at the rate of 32%.
Child benefit is also very popular, claimed by more than 4.7 million taxpayers (for 7 million children) at last year’s census. Thanks to it, after submitting the annual PIT declaration, we can expect to return the excess tax to the tax office. You can deduct PLN 1,112.04 per year from your taxes for the first and second child, PLN 2,000.04 for the third child, that is, in the case of three children, you can get PLN 4,224.12.
Almost 1.3 million taxpayers took advantage of youth relief. It includes the exemption of income from PIT from full-time work or contract received by the taxpayer up to the age of 26 up to PLN 85,528 per year.
Relationship dissolution, rehabilitation assistance and donations
Another benefit that was most used in urban areas in 2023 (more than 1.2 million people) was the trade union benefit, which consists of the deduction of membership fees by persons belonging to trade union organizations.
Rehabilitation takes the fifth place in the rating. Almost 1.1 million taxpayers used it. Rehabilitation assistance consists of the earned income deduction, which is money spent for rehabilitation purposes and purposes related to facilitating the performance of life activities. This terrain can be used by both disabled people and people dependent on disabled people.
The data of the Ministry of Finance shows that more than 567 thousand taxpayers benefited from preferential taxation of income available to single parents.
While 481,000 people received tax relief for public benefit donations in their PIT. As part of the relief, you can deduct up to 6% of the total amount. income/income.
Internet, heating modernization and relief of IKZE
Another popular scheme in Poland is internet tax relief. In 2023, about 424,000 people used it. taxpayers. Here you need to remember about the conditions. First, deductions are only allowed for two consecutive tax years, but only if we have not previously deducted internet expenses. Second, the maximum deduction for a tax year cannot exceed PLN 760.
In the ninth place is the relief of heating modernization. More than 338,000 people have used it. Poles. Owners or partners of a single-room apartment (as well as a semi-detached or terraced house) who have paid for its heating modernization are entitled to benefit from it. Moreover, the amount of the deduction cannot exceed PLN 53,000. PLN in connection with all heating modernization projects in buildings. It should be noted that in case of marriage, this amount is allocated to each person separately, so only PLN 106,000 can be deducted. PLN for heating modernization assistance.
About 245,000 people benefited from the 10th IKZE grant in settlements for 2023. taxpayers. Individual retirement accounts, or IKZEs, have been in operation since 2012, and as an incentive to save for retirement, tax-deductible payments to them have been introduced. However, transfers to IKZE are limited depending on the expected average salary in a given year. For example, in 2024 it was 14083.20 PLN for entrepreneurs and 9388.80 PLN for other persons.
Also read: How to pay less tax >>>
Main photo source: Wojciech Pacewicz / PAP
