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Home / poland / PIT 0 for young people. "I hire people under the age of 26. Other people are not interested in me" [1.07.2019]

PIT 0 for young people. "I hire people under the age of 26. Other people are not interested in me" [1.07.2019]



Income of persons up to 26 years who do not exceed 85.5 thousand. The PLN will be exempt from the August income tax annually. Experts: – Fictitious employment of young people, especially cousins, will start.

The exemption from income tax is also applied to income from work and to the contract of the order.

In accordance with the assumptions, the provisions on tax relief on income tax will come into force on 1 August this year and will apply to income realized from that date.

What about the principle of equality before the law?

"Thanks to the PIT 0 for young people who start their professional career, they will get more compensation for their work. This will be an important incentive for taking legal employment and residence in the country and for the development of the Polish economy," said Marian Banaś, Minister of Finance .

The tax relief for income tax refers to income that does not exceed 85,528 zlotys in the tax year.

However, voices have criticized this solution, – Disappearance intended solely for persons aged 26 or over who receive income from a particular source violates the principle of equality before the law as defined in Article 32 of the Constitution of the Republic of Poland – Przemysław PruszyńskiTax Advisor to the Confederate Lewiatan. – There is doubt as to why exclusion of young people engaged in a professional activity on the basis of a contract for a particular job is excluded from the group of persons entitled to apply. Natural legal relationships between certain professional groups, such as artists, architects, graphic designers, photographers, actors or journalists and employers, are contracts for a particular job.

Similar exemptions arise with the exclusion of young people who choose to take significant economic risk and run an independent enterprise. "These are the entrepreneurs who contribute most to the growth of economic growth and at the same time accept very high responsibility on their shoulders even for their employees," Pruszynski said.

In practice this looks like this: The 25-year-old who earns 7,000 PLN a month will be fully exempt from income tax, while someone older than two years with a minimum wage of 2250 PLN will not.

Graduates after graduating from high school will be hired or hired, and extraordinary studies will benefit much more from students who learn everyday (first, according to Lewiatan calculations, can save up to 47,400 PLN in 7 years and the other for 2 years only to about 13,500 PLN).

In addition, older people over the age of 26 who want to "change" when they change their job will receive a salary similar to a young newcomer.

In this special position, both are "new" – but the first will be taxed and the other will not, which will result in unequal charges for the same job.

According to Gazeta Prawna, more than one company will be fed PIT 0 for young people. This will lead to fictitious contracts. Both sides will benefit – the one who is supposed to hire and who will "hire" them.

Fictitious costs

There are already rumors that this will be an incentive for fictitious employment of young people.

– Just look at the ads in style: "I'm looking for a young person up to 26," tax advisers say.
Both sides will benefit. What is allegedly used because it will get a "commission" for "lending" its data to a person who would otherwise have to pay taxes. The other party, ie the Employer, because the compensation paid out of the income tax is deducted from the taxable income.

Read also: Employee Equity Plans in 2019. How much will the employer pay and how many employees? [USTAWA PPK]

"After the new income tax exemption comes into force, such fictitious costs can begin to generate young people, especially cousins," he warns in "Gazeta Prawna" Andrzej Radzisław from the law firm Goźlińska, Petryk and Wspólnicy.

– Evil will certainly happen – comments Prospect Accounting for us. – In employment of students up to 26 years there will be no income or social security tax (ZUS), which means a completely free fee. – Contracts for students up to 26 years are not covered so that when there is no obligation to calculate personal income tax, they will be free of charge. That's why it will be easier to get a job.

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