Home / Poland / PIT 0 for young people. "I hire people up to the age of 26. Others don't interest me" [26.06.2019]

PIT 0 for young people. "I hire people up to the age of 26. Others don't interest me" [26.06.2019]

Income for people up to 26 years old, not exceeding 85.5 thousand. PLN annually will be exempt from personal income tax from August. Experts: – Fictitious employment of young people, especially relatives, will begin.

Income tax exemption applies to both income from work and order agreements.

According to the assumptions, the provisions on tax exemption in PIT will enter into force on August 1 this year and will

What is the principle of equality before the law?

"Thanks to PIT 0 for young people, who start their professional career, they receive higher compensation for their work. It will be an important impetus to get legal employment and stay in the country and to develop the Polish economy", says Marian Banaś, Minister of Finance

. Relief in PIT shall include income up to PLN 85 528 during the tax year

But there were votes that criticized this solution . ̵

1; The dismissal only for persons aged 26 years and who earn income from a particular source, is contrary to the principle of equal treatment under the law, defined in Article 32 of the Constitution of the Republic of Poland – [1945900] Przemysław Pruszyński [1945900]] tax advisor to the Lewiatan Federation. – It has doubts as to why exemptions from young people who engage in professional activities based on specific work contracts have been excluded from the group of those eligible for the application. A natural legal relationship between certain professions, such as artists, architects, graphic designers, photographers, actors or journalists, with employment units is a contract for specific work.

Similar exceptions are raised by young people who choose to take a significant financial risk and run one-man business operations. – It is entrepreneurs who contribute most to building economic growth, while at the same time accepting a very high responsibility for their shoulders, even for their employees – emphasizes Pruszynski.

In practice, this is how it looks: a 25-year-old PLN 7,000 per month will be completely exempt from PIT, while no two-year-olds with a minimum salary of PLN 2250 will not.

An exam after upper secondary school will take employment or employment and study In extramural mode it will achieve a much greater advantage than the students study daily (the first, according to Lewiatan's calculations, can save up to 47400 PLN within 7 years and the others in only 2 years to only 13,500 PLN) [19659008] In addition, older than 26 who choose to "reorganize" when changing jobs will receive a salary similar to a young newcomer.

In this mode, both are "new" – but the first will be taxed and the other will not lead to unequal compensation for the same work.

According to Gazeta Prawna, more than one company will feed on PIT 0 for young people. It will lead to completing fictitious contracts. Both sides will use it – the one who allegedly rents and who to "hire."

Fictitious costs

There are already votes that this will be an incentive for fictitious hiring of young people.

– Just look at how they will show an ad like: "I hire a young person up to 26 years," says tax advisor "GP".
Both sides will benefit. What is alleged to be employed because he will receive a "commission" to "lend" his data to a person who would normally pay tax. And the other side, that is, the employer, because the paid allowance released from PIT will deduct from its taxable income.

Read also: Employees' capital plans 2019. How much will the employer pay and how many employees? [USTAWA PPK]

"After the entry into force of the new PIT exemption, such fictitious costs can begin to be generated by young people, especially relatives", warns Andrzej Radzisław from Goźlińska, Petryk in Wspólnicy Law Firm.

– Abuse will surely happen – comments to us Prospect Accounting Office. – When you hire a student up to 26, there will be no PIT or Social Security (ZUS), which means a completely free compensation. – Contract contracts for students up to 26 years are not covered, so when there is no obligation to calculate a PIT advance, they will be free of charge. That's why they will get the job easier.


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