Poland Eases Middle-Class Income Tax, Raises Levy on Big Firms
Poland raises income tax threshold and introduces new rate to aid the middle class, offset by a higher corporate tax for large firms.
The Polish government has announced a significant adjustment to its tax framework, aimed at reducing the financial burden on middle-income earners while increasing revenue from the country's largest corporations.
Prime Minister Donald Tusk revealed on Wednesday that the threshold for the second personal income tax bracket will be raised to 130,000 zloty (approximately $34,854), up from the current level of 120,000 zloty. This change is designed to keep more money in the pockets of middle-class taxpayers.
In addition to the threshold adjustment, the government will introduce a new tax rate specifically intended to ease the load on this demographic. The details of this new rate were not specified in the announcement.
To offset the expected shortfall in state revenue from these personal tax cuts, the corporate income tax rate for companies with annual revenues exceeding 50 million euros will be increased. The rate for these large enterprises will rise from 19% to 22%.
This dual-pronged approach signals a deliberate policy shift, redistributing the tax burden from individual middle-class citizens to the largest corporate entities operating in the country.