Poland exempts under 26s from income tax to stop exodus

8 Aug 19

Two million young people in Poland will no longer pay income tax, as the government tries to keep them from leaving the country for work.

Since the change came into effect at the start of this month, any earnings under PLN 85,528 (Poland’s currency, złoty) – equivalent to £18,243 - made by a person who is 26 years old or younger will not be subject to personal income tax.

Earnings under that threshold (minus exemptions) will remain taxed at 18% for people over 26 years, with earnings over the amount taxed at the same rate as before for everyone: 32%.

The average wage in Poland is a little more than PLN 61,000 (about £13,000).

Prime minister Mateusz Morawiecki has said the change was designed to encourage young people to stay in Poland.

Since the country joined the EU in 2004, Poles (especially young people) have often moved abroad for more lucrative work in Western Europe.

Morawiecki tweeted: “We want to help young Poles enter the labour market and gain employment.

“Zero PIT tax rate will not only give them an impetus to their professional careers, but also support at this crucial stage of life in which they want to become independent and find their own way.”

Morawiecki and his ruling right-wing Law and Justice party also plan to reduce the lower rate of PIT for over 26s to 17% in the future.

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