The Polish Deal 2022 Impact & Solutions – Employer’s Perspective

As a continuation to our series of meetings on the New Polish Deal in taxes, the AmCham Tax & Financial Services Committee organized on December 7 a session entitled The Polish Deal 2022 Impact & Solutions – Employer's Perspective.

Our speakers were Teresa Nisler, and Witold Widurek. They presented fundamental changes in personal taxation and social security/healthcare contributions for employees in the context of the New Polish Deal with an analysis of incentives and allowances available under Polish PIT law.

The most critical changes from the employer's perspective regarding the New Polish Deal include raising the tax-free allowance to PLN 30,000 a year, raising the tax threshold to PLN 120,000, a tax credit for employees earning between PLN 6,000 and PLN 11,000, and eliminating the possibility of deducting health insurance contribution to tax. The last change will mean that those earning up to PLN 11,000 will not lose, whereas, in the case of those earning more than PLN 11,000, taxation will increase, which will result in a lower net salary.

However, some tools might help maintain the current level of wages, such as However, some tools might help maintain the current level of wages, such as payment of the variable part of salary still in 2021, implementing the remunerating board members based on a shareholders resolution; share-based employee incentive plans

, share-based incentive plans for employees, and implementing a copyrights remuneration model that will allow increasing the employees' salaries without changing their gross salary and without incurring additional costs. What is worth remembering is '" substance over form" - fulfillment of the elements of economic activity depends on factual findings and not on the content of documents (important in, e.g., B2B cooperation that allows offering competitive remuneration to service providers)., implementing the model of remuneration of management boards based on resolutions, share-based incentive plans for employees, and implementing a copyrights remuneration model that will allow increasing the employees' salaries without changing their gross salary and without incurring additional costs. What is worth remembering is '" substance over form" - fulfillment of the elements of economic activity depends on factual findings and not on the content of documents (important in, e.g., B2B cooperation that allows offering competitive remuneration to service providers).