The Sejm is due to take up a new government bill on changes to PIT, CIT and the flat-tax (ryczałt) on Thursday, 5 November. The PIT changes have been linked in it to a CIT rise for the largest companies, so parliamentary work is starting over from the beginning.
According to money.pl, the first and second readings of the new bill are scheduled for Thursday, 5 November. Business Insider reports that the reform, which benefits around 3.5 million taxpayers, was supposed to be nearly finished, but in practice the Sejm will begin work anew. The figure of 3.5 million comes from that portal and has not been officially confirmed.
How we got back to square one
The government adopted the bill (labelled UD458, Sejm print 3147) on 29 September. The Sejm passed it on 22 October, but without the CIT rise. According to Bezprawnik, a motion from a minority of MPs, Ryszard Petru (Centrum) and Janusz Kowalski, was adopted. The MPs also added annual indexation of PIT thresholds from 2028.
On 28 October the Senate went the other way. As we reported in our article on the Senate’s amendments: the return of the CIT rise and the removal of indexation, the chamber restored the CIT rise and removed the threshold indexation. According to money.pl, the government is now sending a new bill with the whole package to the Sejm.
What the package contains
- PIT: the first threshold is to rise from PLN 120,000 to PLN 130,000. A new 24% rate, applying from 2027, also appears.
- CIT: the basic rate for the largest companies rises by 3 percentage points, from 19% to 22%. According to Bezprawnik, this concerns firms with revenues above EUR 50 million.
- Flat tax: the revenue limit for this form of taxation is to fall to EUR 250,000. According to the Edukoncept portal, the current limit is EUR 2 million.
Money.pl also reports that the law raises a certain rate from 4% to 5%. The available excerpts do not show what it applies to.
A race against time
Business Insider describes a race against time, because the changes are to apply from 2027. They must therefore be passed, go through the Senate and receive the president’s signature before the end of the year. Earlier, President Karol Nawrocki signed the law on zero PIT for parents of two children. It is not known whether he will veto the new package.
What it means
For taxpayers on the tax scale, the key element is the higher PLN 130,000 threshold, which covers the lower rate bracket. The final shape, however, depends on the votes. Linking the reform to CIT means MPs will not separate the benefits for taxpayers from the increase for large companies, as was the case in the first version of the bill. Entrepreneurs settling under the flat tax should expect a lower revenue limit from 2027 and check whether they still fall within it.
At the time of publication, we did not know the Sejm’s decision on the new bill.
