On June 28, 2021, the Ministry of Finance announced the commencement of pre-consultation on the project introducing a package of solutions for the return of capital to Poland and changes in the capital repatriation program, relief for taxpayers working for science, culture and sport, changes in the PIT Act regarding the lump sum on relocation, relief in income tax for persons returning to Poland.
Capital repatriation program
The proposed regulations introduce a capital repatriation program - a transitional income tax on certain income of natural persons, legal persons and other organizational units. The program wil be addressed to entities interested in disclosing previously untaxed income to tax authorities and entities interested in withdrawing from risky tax policiec. Taxation with the transitional income tax will be voluntary - taxpayers and tax remitters in the period from mid to the end of 2022 will be able to assess their legal and tax situation and voluntarily decide on possible adjustments of income that has not yet been fully declared for taxation.
Relief for taxpayers working for science, culture and sport
The relief is based on the possibility of deducting 50% of the tax deductible costs incurred for sports and cultural activities as well as higher education and science from the tax base, in addition to including such expenses in tax deductible costs.
Amendments to the PIT Act regarding the lump sum on foreign income for persons transferring their place of residence to Poland
It is an offer addressed to natural persons who will transfer their place of residence (tax residence) to Poland. It will be based on favorable, lump sum taxation of revenues obtained by them from sources located abroad.
Income tax relief for taxpayers returning to Poland
The relief applies to people who have lived abroad for 3 years. It consists in the possibility of deducting half of the tax paid by the taxpayer in Poland in the previous year from the tax. The taxpayer will be able to apply the tax deduction for four years following the base year. The base year will be the year selected by the taxpayer in which the taxpayer changed his tax residence and became a Polish resident, or the year following the change of tax residence.
The relief for return will also apply to social security contributions. For people returning to Poland, half of the contributions for retirement and disability insurance will be covered by the state budget for 4 years.
The Ministry has announced the draft law. Pre-consultation is open to everyone and will last until July 2, 2021.