Polish Parliament Passes Significant Personal Income Tax Reform
New legislation adjusts tax brackets and increases corporate tax rates for large firms.
1Legislative Approval Secured
The Polish Sejm has passed a comprehensive tax reform bill, securing 236 votes in favor against 207 opposing. This legislation, which amends personal and corporate income tax laws, now moves to the Senate for final review. Lawmakers aim for the new tax framework to take effect starting January 1, 2027.
2Adjusted Income Tax Brackets
The bill raises the first personal income tax threshold from 120,000 to 130,000 PLN, maintaining a 12 percent rate. A new intermediate bracket is introduced for income between 130,000 and 150,000 PLN at a 24 percent rate. Earnings exceeding 150,000 PLN will continue to be taxed at the existing 32 percent rate.
3Increased Solidarity Levy
High-income earners will face a higher financial burden as the solidarity levy increases from 4 to 5 percent. According to 2024 data, this specific tax currently impacts approximately 39,000 individuals. This adjustment reflects the government's broader strategy to redistribute tax obligations among the highest earners within the national fiscal system.
4Corporate Tax Hikes
Large corporations generating annual revenues exceeding 50 million euros will see their corporate income tax rate rise from 19 to 22 percent. This measure specifically targets major entities operating within the Polish market. The change represents a significant shift in the fiscal environment for large-scale businesses compared to previous years.
5Stricter Lump-Sum Limits
The legislation significantly lowers the revenue threshold for choosing lump-sum taxation, dropping it from 2 million euros to 250,000 euros. Furthermore, a 17 percent rate will apply to any revenue surplus exceeding 300,000 euros earned during the fiscal year. These changes restrict access to simplified tax regimes for many small businesses.
6Rejected Opposition Amendments
During the voting session, deputies rejected multiple amendments proposed by various political figures, including Rafał Komarewicz and Ryszard Petru. These proposals suggested higher tax thresholds up to 200,000 PLN and annual indexation. Additionally, attempts to remove the corporate tax increase and the solidarity levy hike were unsuccessful during the final parliamentary debate.
7Historical Legislative Context
This vote follows an earlier October session where the Sejm initially passed a similar bill with amendments regarding indexation and corporate tax. However, constitutional concerns regarding those specific changes led to this second legislative attempt. The current bill represents the government's effort to streamline the tax code without the previously contested modifications.
8Future Implementation Outlook
The bill now requires Senate approval during the current session to meet the January 2027 implementation deadline. If enacted, these changes will fundamentally alter the tax landscape for both individual taxpayers and large corporations. Stakeholders must now prepare for these structural adjustments as the legislative process nears its final conclusion.
Original article: TVN24 — Polish Parliament Passes Significant Personal Income Tax Reform