New year, new… changes in taxation. And there will be quite a lot of them. We know how hard it is to find your way in tax laws. Therefore, the article below presents a summary of the most important tax changes in 2023. What should taxpayers prepare for and take into consideration when filing their returns? Let’s take a closer look.
Tax changes in 2023 – tax relief for monuments will be restricted
From the 1st of January 2023, it will no longer be possible to deduct expenses for the acquisition of a historical monument entered in the register. The same applies to acquiring shares in such a landmark entered in the register of monuments. You can only deduct expenses for monument conservation, restoration, or construction after the work is completed. Expenses that go beyond the scope of works specified in the permit of voivodship conservator of monuments or that were carried out contrary to that permit will not qualify for the tax relief.
Tax changes in 2023 – Higher tax for apartment and dog
2023 also means higher local taxes. For example:
- tax on residential buildings paid by everyone will increase from 0.89 PLN to 1 PLN per square metre;
- the fee for owning a dog – will increase to 150.93 PLN per year;
- fee for staying in a place with the status of a health resort protection area – will increase from 3.52 PLN to 3.94 PLN per day;
- tourist tax – will increase from 4.83 PLN o 5.40 PLN per day.
Tax changes in 2023 – private rental only on a lump sum basis
The issue of private rental, or rather the method of its settlement, has also changed. From January of this year, it will be possible only in the form of a lump sum. Those who so far settled private rental on general terms will have to give up this form of taxation. This means that income from private rental will be taxed at a rate of 8.5% of income or 12.5% of the excess income over 100,000 PLN.
Tax changes in 2023 – no amortization of residential units
Another change regarding rental properties concerns the possibility to amortize them. From 2023, taxpayers who rent residential properties as part of their business cannot amortize them. They cannot include the amortization charges in tax deductible expenses.
The exclusion of the amortization right includes:
- residential buildings,
- residential units,
- cooperative member’s ownership right to residential premises,
- the right to a single-family house in a housing cooperative, used for business activity. Also, the right to a single-family house leased or rented by PIT and CIT taxpayers.
Tax changes in 2023 – new rules concerning the tax-free amount
From 2023, the tax bearer is obliged to reduce the income tax advances by the amount no higher than 1/12 of the tax-reducing amount, if the employee submits a declaration to the tax bearer about the reduction.
The taxpayer (employee) will be entitled to submit a declaration even to three withholding agents, indicating that they are entitled to reduce the advance payment:
- by 1/12 of the amount reducing the tax in the case of one tax bearer,
- by 1/24 of the amount reducing the tax in the case of a declaration submitted to two tax bearers,
- by 1/36 of the amount reducing the tax in the case of a declaration submitted to three tax bearers.
Changing the form of taxation also during the year!
Entrepreneurs who in 2022 decided to settle taxes according to flat tax or lump sum, will be exceptionally able to change this form of taxation to the general rules during the year. This results from the change in the amount of the first tax threshold (a decrease from 17% to 12%). All that is required is to submit a PIT-36 declaration by the 2nd of May 2023, instead of PIT-36L or PIT-28.
Tax changes in 2023 – prolonged deadline for filing – PIT-28
As of the 1st of January, the time to submit the PIT-28 has also been extended. Lump-sum taxpayers will have to submit their annual tax declarations by the end of April, not by the end of February, as was recently the case. Moreover, in 2023 the last day of April is a Sunday, so the deadline for submitting statements is actually the 2nd of May.
Tax changes in 2023 for entrepreneurs
Every entrepreneur should get familiar with the changes in taxes. From the 1st of January 2023, there is quite a lot of them. Here are the most important ones:
- Health insurance contribution for taxpayers who settle taxes according to tax scale and the flat rate has increased to 314.10 PLN.
- The rate of national per diem has increased from 38 PLN to 45 PLN per day. Limits for employees for overnight allowances and public transport have also increased to 67.50 PLN and 9 PLN respectively.
- Rates for foreign per diems and overnight allowances have also increased. These have been in effect already since November 29th, 2022.
- Minimum wage – in 2023, its value will change twice. From the 1st of January to the 30th of June 30, it will be 3490 PLN gross, and from the 1st of July, it will be 3600 PLN gross. The same applies to the minimum hourly rate. From the 1st of January 2023, it will be 22.80 PLN gross, and from July 23.50 PLN gross.
- Increase in ZUS contributions – with the preferential, small ZUS, the total contribution will be (without the health insurance contribution) from the 1st of January:
– 30th of June 2023 – 331.26 PLN,
– from the 1st of July – to the 31st of December 2023 – 341.72 PLN.
- The rates for entrepreneurs who do not use the preferential ZUS are also changing. The total full contributions for 2023 will be 1418.48 PLN (without the health insurance contribution).
- Starting from 2023, all entrepreneurs – both self-employed and employers – must have a PUE ZUS account.
- From the 17th of January 2023, mileage allowance rates will also increase.