Poland to Introduce Third PIT Rate, Lowering Taxes for 3.5 Million; CIT to Rise

Poland's government is set to implement a significant tax reform, introducing a third personal income tax (PIT) bracket at 24% effective from 2027. This move aims to provide financial relief to approximately 3.5 million taxpayers, potentially saving them up to 3,600 Polish zloty per year. The reform seeks to smooth the transition between the existing 12% and 32% tax rates, a measure that most economists polled by Rzeczpospolita find logical.

However, the proposed tax adjustments are not solely focused on individual income. The government also plans to raise the corporate income tax (CIT) rate. This dual approach suggests a strategy to balance individual tax relief with increased revenue from businesses.

The economic rationale behind easing the steep tax bracket jump is acknowledged by a majority of surveyed economists. They believe this adjustment will create a more gradual and manageable tax structure for individuals. The specifics of the CIT increase and its potential impact on businesses remain a key point of discussion as the reforms are finalized.