Home » today » Business » Pensions after changes. One provides for an exemption from PIT, the other – retirement pensions without retirement age: August 22, 2021

Pensions after changes. One provides for an exemption from PIT, the other – retirement pensions without retirement age: August 22, 2021

First, unofficial information appeared that the New Deal prepared by the government of Mateusz Morawiecki provides for the introduction of pensions in Poland for people who have not yet reached the retirement age, the so-called internship pensions. Now, the draft income tax exemption for people who, after reaching the retirement age, will not transfer to ZUS payments, but will continue their professional work, postponing the deadline for submitting the pension application – which is a part of the National Reconstruction Plan, is widely commented on.

Both of these solutions have strong substantive foundations and support of large social groups.
Most importantly, pension reforms – both for tax reductions or exemptions and those for flexible retirement age – are planned in the first phase. Prime Minister Mateusz Morawiecki declared that the relevant laws would be adopted within the first hundred days of implementing the Polish Deal.

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The Polish Order: Pensions Exempt From Tax?

After the announced tax reform, retirees will in practice gain as much from taxes as all other Poles earning income.
Thanks to the increase of the free amount to 30,000 PLN per month, they will get exemption from PIT for pensions in the amount of up to PLN 2,500 gross.
Currently, each benefit, regardless of the amount, is taxed with PIT. People with the lowest incomes benefit from the increased tax-free amount – PLN 8,000. PLN (PLN 666.67 per month). From the rest, they give away 17 percent. in the form of PIT.
Now from pensions to 2.5 thousand. PLN gross monthly PIT will not pay, but they will not get this amount in hand, because they will pay 9 percent from it. health insurance premiums. now the actual pension is charged to 1.25 percent. because the rest is tax deductible.

How and when will the fourth wave of COVID-19 attack us: August 22, 2021 ….

From the justification to the new tax act:

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