Major change in taxes: you will no longer pay tax on this amount
The Polish Ministry of Finance proposes raising the exemption limit on the PCC tax to address outdated thresholds that have not changed in 25 years.
The Polish Ministry of Finance has announced a proposal for a legislative amendment to the PCC (Civil Law Transactions Tax) Act, aimed at increasing the long-standing exemption limit that has not been adjusted for 25 years. Currently, transactions involving movable goods valued under 1,000 PLN are exempt from the 2% tax imposed on buyers. This adjustment is seen as necessary to align the exemption limit with modern economic realities.
As per the existing law, goods valued over 1,000 PLN require buyers to submit a PCC-3 declaration and pay tax within 14 days of the purchase. The Ministry of Finance has pointed out that the costs associated with tax compliance (such as postal fees and potential penalties) often exceed the tax amount itself for transactions only slightly above the exemption threshold. Therefore, raising the limit is seen as a practical step to facilitate smoother transactions and reduce the burden on consumers.
This potential change indicates the government's recognition of the need to modernize tax regulations in response to current economic conditions, which may alleviate financial strain for buyers and promote consumer spending. The proposed reforms are expected to stimulate economic activity by making it easier for individuals to engage in routine purchases without the hindrance of undue taxation.