PIT Reform Proposed: Tax Threshold Set at PLN 180,000, Changes Also Await Businesses

A new parliamentary bill proposes raising Poland’s personal income tax threshold to PLN 180,000 and introducing mandatory cooperation programs for large corporations starting in 2027.

PIT Tax Threshold May Rise to PLN 180,000

The personal income tax threshold could be raised from PLN 120,000 to PLN 180,000 under a parliamentary bill submitted to the Sejm. Jointly filing spouses could also benefit, with their combined first tax bracket threshold increasing from PLN 240,000 to PLN 360,000. The project maintains the 12 percent tax rate and the tax-free amount of PLN 30,000.

PiS MPs submitted a bill to the Sejm assuming the raise while keeping the current 12 percent rate and PLN 30,000 tax-free amount. The project also introduces a second major change: mandating that the largest companies join the Cooperative Compliance Program with the National Tax Administration.

PIT Tax Threshold Increase Targeted for 2027

The key change for individuals involves raising the first tax threshold from PLN 120,000 to PLN 180,000 without altering tax rates or the tax-free amount. The tax-free amount remains at PLN 30,000, maintaining the existing structural framework.

Currently, the second tax bracket begins after exceeding PLN 120,000, meaning the project shifts the boundary subject to the 32 percent rate upward by PLN 60,000.

Millions of Taxpayers Expected to Benefit

According to PIT settlements for 2024, income exceeding PLN 120,000 was reached by 1.935 million taxpayers. Latest 2025 data shows this figure rose to approximately 2.41 million taxpayers, with the project expected to impact roughly 10 percent of all PIT payers.

Higher Threshold Safeguards Income from 32 Percent Rate

Shifting the threshold means a taxpayer with a tax base exceeding PLN 120,000 but under PLN 180,000 will not enter the 32 percent tax bracket. For instance, with a tax base of PLN 150,000, the entire income falls within the first bracket, applying the 32 percent rate only to amounts exceeding PLN 180,000.

Spouses to Benefit from Higher Joint Threshold

The project highlights benefits for families, setting the joint threshold for jointly filing spouses at PLN 360,000 instead of the current PLN 240,000. This modifies the threshold height from the new tax scale without changing the rules for joint filing itself.

Budget Cost and Mandatory Corporate Compliance

The budgetary cost of raising the PIT threshold is estimated at approximately PLN 25 billion annually, which the authors intend to cover by expanding the National Tax Administration’s Cooperative Compliance Program.

Operating since 2020, the Cooperative Compliance Program has seen limited interest, involving only 17 entities according to the authors, a figure the new regulations aim to radically change.

Mandatory Program for Large CIT Taxpayers

The project mandates participation for enterprises with annual revenues exceeding EUR 50 million, impacting approximately 4,350 large CIT taxpayers and roughly 80 tax capital groups. Crucially, if a company fails to sign the relevant agreement within the designated deadline, it will be considered concluded by operation of law, marking one of the project’s most controversial solutions.

Implementation Timeline for New Rules

If approved by parliament, the new PIT rules would enter into force on January 1, 2027, resulting in millions of taxpayers less frequently falling into the 32 percent tax bracket and receiving higher net wages.