Taxes must be paid by each of us – not only in the form of personal income tax but also VAT and other taxes for the state. However, sometimes the tax is not charged because of our earnings – how much is the tax-free amount of PIT currently?
The tax-free amount, and more precisely the amount of tax-free income is the amount of income that does not make it necessary to pay income tax. It is one of the elements of the tax system.
Income tax is the provision of a natural or legal person to a state that is dependent on its income and possible deductions. In the case of income tax, the income tax is the taxable amount, ie the income less the costs of obtaining it.
The tax-free amount in Poland
Polish taxpayers can also use the tax-free amount when submitting their PIT declaration. It is currently dependent on how much we earn. It is also worth pointing out that the Act on personal income tax applicable in our country assumes a number of tax exemptions. They also apply to individual professional groups.
Very often, we can find that the amount free from income tax in Poland is very low. Indeed, compared to other countries, we do not perform well, because even the least-earning people have to pay for it, while in other countries it concerns people who earn more.
How the tax-free amount changed in Poland:
• 2009-2016 – PLN 3,091.00
• 2008 – PLN 3,099.00
• 2007 – PLN 3,013.37
• 2003-2006 – PLN 2,889.89
• 2002 – PLN 2,717.16
• 2001 – PLN 2 596,43
• 2000 – PLN 2,295.79
At present, the tax-free amount has been raised and is to be raised in subsequent years. From 2017 it depends on the amount of income.
Tax-free amount from 2017
After the changes introduced in the regulations, the tax-free amount up to the amount of PLN 6,600 will be total, i.e. when we earn so much, we will not pay the tax – it will be refunded. From PLN 6,601 to PLN 11,000, the amount will decrease to over PLN 11,000 per year to reach the current level, ie PLN 3,091.
It is worth noting at the same time that the highest earners will have to pay a higher tax. Above the income of PLN 85,528 per annum, the free amount will gradually decrease, while taxpayers earning more than PLN 127,000 will not have a free amount at all, while previously they could also use the basic tax-free amount, that is PLN 3 091.
In summary, in the life of many Poles, the new tax-free amount passed by the government will not apply. It is worth pointing out that a person earning a minimum salary, which in 2016 is PLN 2,000 gross, earns an income of PLN 24,000 a year.
We should also remember that income below the threshold of the tax-free amount does not exempt the taxpayer from submitting the annual PIT testimony! We prepare it on the basis of documents provided to us by the employer. The preparation of PIT can also help us with special computer programs – now we can also submit the document online.