Poland: Advance payments of individual income tax, implications for employers
Extended deadline for collecting and transferring certain individual (personal) income tax advance payments
Implications for employers
The Ministry of Finance on 8 January 2022 issued a decree extending the deadline for collecting and transferring certain individual (personal) income tax advance payments.
The decree was issued in response to the reduction in remuneration experienced by some taxpayers in January 2022 because of the launch of the “Polish Deal” program.
The intention is to extend the deadline for collecting the advance payments; however, there are implications for employers—they will need to analyze a hypothetical remuneration of the taxpayer under both the rules introduced under the Polish Deal and under the previously applicable rules and then collect the amount of advance payment under the rules providing for a lower amount.
Thus, it will be necessary for employers to properly adjust their accounting systems and explore possibilities of not applying the new mechanism. When employers have already paid remuneration to taxpayers in January and that amount is lower than remuneration paid out in line with the rules applicable before 1 January 2022, they are required to make the necessary remuneration adjustments.
Read a January 2022 report prepared by the KPMG member firm in Poland
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.