From January 1, 2023, changes will come into force regarding the calculation of advance payments for personal income tax, which will apply to both persons employed on employment contracts and contractors, persons employed on contracts for specific work, management contracts, as well as persons performing the function of member of the management board.
1. Changes regarding the tax-reducing amount
The tax-reducing amount from July 1, 2022, is 300,00 PLN per month (3 600,00 PLN on an annual basis) and it is the amount by which the payer (employer) reduces the tax advance calculated in the month. Until the end of 2022, an employee who wanted to take advantage of the tax-reducing amount had to provide the employer with a PIT-2 declaration (this concerned employees only under an employment contract). In addition, an employee could submit a PIT-2 declaration to only one employer.
From 2023, a statement on the reduction by the tax-reducing amount will be able to be submitted by both employees and contractors, persons employed under a contract for specific work, a contract and members of the management board (PIT-2 form, part C). In addition, the taxpayer will be able to indicate from one to three payers who will apply the tax-reducing amount.
The value of reducing the income tax advance payment will depend on the number of payers to whom the declaration will be submitted and will be:
- declaration submitted to one payer – 1/12 of the tax-reducing amount (1/12 * 3 600 PLN =
- declaration submitted to two payers – 1/24 of the tax-reducing amount (1/24 * 3 600 PLN = 150 PLN),
- declaration submitted to three payers- 1/36 of the tax-reducing amount (1/36 * 3 600 PLN = 100 PLN).
The declaration may be submitted by the taxpayer at any time during the calendar year. It will be taken into account by the payer from the next month at the latest.
Employees who submitted the PIT-2 form to the employer by the end of 2022 do not have to resubmit a declaration on tax-reducing amount. Previously submitted applications remain valid in 2023 and in subsequent years (until the employee withdraws the submitted application).
2. PIT-2 form
From 2023, the PIT-2 form will partly change its character. Until 2022, it was submitted only for the reduction by the amount reducing the tax and concerned only persons employed under an employment contract. From 2023, PIT-2 will be able to be submitted by both employees and contractors, persons employed under a contract for specific work, a management contract, and members of the management board.
The PIT-2 form will be used to submit applications and declarations, such as:
- declaration regarding the reduction of tax advances by the tax-reducing amount (part C),
- declaration regarding the reduction of tax advances by the tax-reducing amount submitted to the agricultural cooperative, the enforcement authority paying remuneration for the workplace or an entity that is not the legal successor of the workplace, but took over its employee obligations (part D),
- declaration regarding joint settlement with a spouse or as a single parent (part E),
- declaration on the use of increased tax deductible expenses (part F),
- declaration regarding the use of the return relief (part G),
- declaration regarding the use of the relief for families 4+ (part G),
- declaration regarding the use of the relief for seniors (part G),
- application for not applying relief for young people (part H),
- application for not applying tax deductible expenses (part H),
- application for resignation from copyrights revenue costs (part I),
- application for not collecting advances in the tax year due to obtaining income lower than 30 000,00 PLN per year (part J).
Declarations and applications, with the exception of the application in part J, which applies to one year, also apply to subsequent tax years.
The declaration/application may be submitted by the taxpayer at any time during the calendar year.
It will be considered by the payer at the latest from the next month.
The employee will also be able to withdraw previously submitted applications and declarations on the PIT-2 form.
After the termination of the legal relationship between the parties, the payer, when calculating tax advances, does not use declarations and applications previously submitted by the taxpayer, with the exception of the taxpayer’s applications contained in parts H and I of the PIT-2 form.
In the attachment to this correspondence, we provide you with a new template of the PIT-2 form along with instructions for its completion.
3. PIT-2 and the obligation to resubmit
An employee who submitted the PIT-2 form in previous years and authorized the employer to use 1/12 of the tax-reducing amount, and who does not want to make any changes, does not have to submit a new declaration on the reduction by the tax-reducing amount. The form is still valid in 2023.
In a situation where the employee would like to submit declarations regarding changes compared to the previous year, e.g., regarding joint taxation of income, the use of relief, resignation from increased tax deductible expenses, then an updated PIT-2 form should be submitted to the employer.
4. PIT-2 and changes for persons employed on civil law contracts, management contracts and members of the management board
So far, persons employed in a form other than an employment contract have not been able to submit the PIT-2 document. From 2023, each taxpayer employed under a contract of mandate, a contract for specific work, a management contract and a member of the management board will be able to authorize the payer to apply 1/12, 1/24 or 1/36 of the amount reducing the tax. The taxpayer will be able to submit the PIT-2 form to one, two or three payers. This also applies to situations where, for example, a contractor is employed under a contract of mandate and an employment contract. The PIT-2 form may then be submitted to both the principal and the employer. For each of them, the tax-reducing amount will then be PLN 150.
5. Possibility of applying for not collecting advance income tax for everyone
From 2023, the new regulations will make it possible to apply for not collecting advances on income tax by all taxpayers, regardless of the type of income (PIT-2 form, part J). So far, this has only applied to income from activities performed personally. The taxpayer will be able to submit the mentioned application if he predicts that his taxable income according to the tax scale will not exceed 30 000,00 PLN in the tax year. If, after submitting the declaration, the taxpayer’s income exceeds PLN 30 000,00 PLN, then advance payments will be collected from the surplus over 30 000,00 PLN (without taking into account the tax-reducing amount).