Personal income tax nuances – how to avoid owing the state

The 2018 tax reform caused significant turmoil for a large part of society. Initially, it created headaches for accountants and business executives, forcing them to adapt to requirements that were not fully understood, and in the spring of 2019, nearly 60,000 individuals realized that they had involuntarily become debtors to the state. Often, the tax debt arose due to the new system for applying the differentiated non-taxable minimum and the incorrect selection of personal income tax rates.

Since these complex legal provisions remain in effect, people will continue to be at risk of becoming tax debtors, even if they only receive a salary. Therefore, we have prepared advice on how to protect yourself from becoming a personal income tax (PIT) debtor. This guidance covers the calculation of PIT, the role of the electronic tax booklet, and the differentiated non-taxable minimum, with special attention given to high-risk groups and specific situations. For example, it explains how changing jobs can affect tax calculations and what surprises working pensioners and recipients of royalties might encounter.