Over the last 10 years, the number of people paying flat tax has increased by almost 80%. Poles earn better and in this way often escape from higher burdens. Yet the Ministry of Finance has announced a “reset” in this matter.
What is flat tax? In short: the rate is always 19%. Regardless of your income. This may be tempting compared to the settlement on general terms, where income up to PLN 85,528 per year is subject to the 17% rate, but already above – 32%. With a flat tax, you cannot settle accounts with your spouse or deduct allowances – for a child, small expenses, or donation.
The data of the Ministry of Finance said about 390,000 people opted for this option in 2010. The latest ones show over 700,000. The pace of growth has clearly accelerated in recent years.
Many high-income workers choose to start a business for tax optimization. Thanks to this, they pay lump sum contributions to the Social Insurance Institution and a lower tax than on a full-time job. With their income, they would easily exceed the threshold of 85,000 PLN per year and have to then pay 32 %. And so they pay a 19 percent rate.