Effective 1 January 2018, Poland increased the personal tax allowance (credit) for lower incomes from PLN 1,188 to PLN 1,440, resulting in an exemption for individual income up to PLN 8,000. Under new rules introduced in 2017, the allowance is reduced as incomes increase. For 2018, the personal tax allowance applies as follows:
- For income up to PLN 8,000, an allowance of PLN 1,440 applies, resulting in a tax exemption (PLN 1,440 / 18% tax rate = PLN 8,000);
- For income over PLN 8,000 up to 13…