PIT for 2022. Seven pitfalls to avoid in order to make a favorable settlement with the tax office in the annual tax return [27.01.2023]
The changes introduced by the Polish Governance brought many doubts when it comes to settlements of entrepreneurs and employees. The annual PIT settlement for 2022 may be the first difficult task in a very long time. Both for employees and their employers.
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Shortly after the entry into force of the new regulations, it turned out that their change was required, and for the first half of 2022, taxpayers were provided with a complete modification of the solutions introduced a few months earlier. This confusion resulted in occurrence of significant doubts among taxpayers as to the determination of the correct method of settling income tax advances.
How to properly settle the tax for 2022, what pitfalls to avoid – indicate Lucyna Bluszcz, manager in the Tax Advisory Department of EY Polska and Sebastian Majak, consultant in the Tax Advisory Department of EY Polska.
The introduction of the relief for the middle class, which was deducted from income as compensation for not deducting the health insurance premium, and then its liquidation, in many cases pose a challenge related to the tax settlement for 2022. After all, taxpayers will settle for the entire year without the relief, but with lower tax rate (12% instead of 17%). Does this mean that taxpayers applying it will they have to pay tax?
As Lucyna Bluszcz and Sebastian Majek from EY Polska explain, in the simplest situation there are employees with monthly revenues lower than PLN 5,701 and higher than PLN 11,141, as well as entrepreneurs with annual revenues lower than PLN 68,412 and higher than PLN 133,692 – i.e. persons who do not qualify for this relief. In their case, the liquidation of the relief for the middle class is not a problem. They will probably benefit from a reduction in the tax rate to 12 percent. and they will receive refund of overpaid tax.
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