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PIT 0 for young people. "I dedicate myself to people under 26. Other people do not interest" [1.07.2019]



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Revenues of people up to 26 years old, not exceeding 85.5 thousand. Annual PLNs will be exempt from personal income tax as of August. Experts: It will start the fictional employment of young people, especially relatives.

The exemption from income tax applies both to income from work and to orders.

Depending on the assumptions, the provisions on tax exemptions to PIT will come into force on August 1 this year and will be applied to income earned from # 39; this date

What happens with the principle of equality before the law?

"Thanks to PIT 0 for young people who start their professional career, they will receive a higher remuneration for their work. It will be an important momentum to take legal care and stay in the country and to develop the Polish economy," he says. say Marian Banaś, Finance Minister.

The relief of the PIT must be related to income that does not exceed 85 528 PLN in the fiscal year.

There was, however, you see that they criticized this solution. – Disclaimer aimed solely at people of up to 26 years and who receive income from a specific source violates the principle of equality before the law, as defined in the article 32 of the Constitution of the Republic of Poland – Przemysław Pruszyńskifiscal adviser of the Confederation of Lewiatan. – Questions arise as to why the exemption of young people participating in professional activity based on specific work contracts has been excluded from the group of authorized persons. A natural legal relationship between certain professional groups, such as artists, architects, graphic designers, photographers, actors or journalists, and the recruitment of entities are contracts for specific works.

Similar exclusions are explained by the exclusion of young people who decide to assume significant economic risk and manage an individual company. – They are the entrepreneurs who contribute more to the construction of economic growth, while accepting a very high responsibility on their shoulders, even for their employees. Emphasizes Pruszynski.

In practice, this is how it seems: a 25-year-old boy who obtains PLN 7,000 a month will be totally released from the PIT, while someone of two years with a minimum wage of 2250 PLN will not.

A graduate after high school will take up a job or will work and extramural studies will get a much greater benefit than those who study during the day (the first one, according to Leviathan calculations, can save up to 47400 PLN at 7 years and others for 2 years and only up to approximately 13,500 zł).

In addition, people over the age of 26 who want to "change" when they change jobs will receive a salary similar to a young person newly arrived.

In this particular position, both are "new", but the first ones will be recorded and the other will not do so, which will lead to unequal remuneration for the same work.

According to Gazeta Prawna, more than one company will feed on PIT 0 for young people. This will lead to the celebration of fictitious contracts. Both parties will benefit: what they supposedly will use and who "will hire".

Fictitious costs

You already see that this will be an incentive to hire young people fictitiously.

– Look at the ads in the style of: "I'm looking for a young person up to age 26," said tax advisers.
Both sides will benefit. What is supposedly used, because you will get a "commission" to "lend" your data to a person who would normally have to pay taxes. And the other party, that is, the employer, because the paid remuneration released from PIT will deduct from its taxable base.

Also read: Employee capital plans in 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 "Gazeta Prawna" Andrzej Radzisław from the law firm Goźlińska, Petryk and Wspólnicy.

– Surely there will be abuses: comment Prospect's Accounting Office. – When using a student up to the age of 26, there will be no PIT or Social Security (ZUS), which means a completely free remuneration. – The contracts contracted for students of up to 26 years of age are not covered, so that when there is no obligation to calculate the advance of PIT, they will be made without costs. That is why they will achieve an easier job.

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