Poland intends to change the personal income tax system, benefiting 3.5 million taxpayers. At the same time, the corporate profit tax will be increased.

The Prime Minister of Poland, Donald Tusk, announced on Wednesday plans to modify the personal income tax system, which will benefit approximately 3.5 million taxpayers.

The government will raise the threshold for the second tax bracket from 120,000 to 130,000 zlotys, reducing the tax rate for incomes between 130,000 and 150,000 zlotys to 24%. At the same time, the corporate tax for companies with revenues over 50 million euros will increase from 19% to 22%, to compensate for the large budget deficit, estimated at over 7% of GDP.

Tusk emphasized the need to keep the deficit under control, in the context of rising defense spending. Additionally, the solidarity tax on high incomes will increase by one percentage point, reaching 5%. The proposed changes must be approved by parliament and signed by the president.