The latest amendment to the Polish Deal introduces further benefits in the tax system for big families (with four or more children).
New family benefits will be exempt from PIT.
The draft act does not predict that the planned reliefs and benefits could affect additional deductions and family benefits that are currently applicable to parents.
No PIT obligations for big families
These families will pay PIT only after exceeding 230 000 PLN annual income. The relief will be applicable not only to full-time employees who pay taxes according to the tax scale, but also for entrepreneurs who settle the tax by a flat rate - 19 percent.
The planned regulations introduce a new tax exemption into the PIT Act, up to the amount of 85 528 PLN, which will be doubled by both parents and will amount to 171 056 PLN. This exemption will be cumulative with the planned increased tax-free amount of 30 000 PLN per parent. If the act enters into force, a family with many children will not pay PIT only after exceeding the amount of 231 056 PLN of the joint annual income.
New relief for single parents/ Deletion of art. 6 para. 4 from the PIT Act
In place of the preferential settlement of a single parent with a child, it is planned to introduce a new tax relief for single parents, i.e. a deduction of 1 500 PLN per year from the tax due, ZUS and NFZ.
Additional help for families of children aged 12 to 36 months
The Family Care Capital “Rodzinny Kapitał Opiekuńczy”, which is part of the Polish Deal, is considered to support families with young children. The family benefit under the program will be paid monthly (without the income criterion) - 500 PLN for two years or 1 000 PLN for a year.
400 PLN plus for a child in a nursery
Support for children not covered by the care capital consists in introducing a subsidy for the child’s stay in a nursery, children’s club or with a day carer in the amount of up to 400 PLN per month, which is to be used to cover the fee for the child’s stay in a care institution.