Poland’s government announced a series of tax adjustments on Wednesday, raising the second personal income tax bracket threshold while increasing the corporate tax rate to offset revenue impacts.
The personal income tax threshold for the second bracket will rise to 130,000 zloty ($34,854) from 120,000 zloty, with the applicable rate maintained at 24%. The highest personal income tax rate remains unchanged at 32%. The solidarity tax surcharge will increase by one percentage point, though the exact new rate was not specified in the announcement.
To counter the fiscal impact of the personal tax changes, Poland will raise the corporate income tax rate to 22% from 19%, effective immediately. The higher rate applies only to companies with annual revenues exceeding 50 million euros. The measures were framed by Prime Minister Donald Tusk as a step to ease the tax burden on middle-class earners, though no detailed fiscal projections were provided.
The adjustments follow broader discussions on tax policy amid shifting economic conditions in the European Union. The government did not disclose additional measures to support small and medium-sized enterprises or clarify whether the corporate tax increase would apply retroactively to the current fiscal year.
