The silent end of the net relief. The government will take hundreds of zlotys from 2025

dailyblitz.de 2 months ago

In the bulk of everyday information it is easy to miss changes that will actually hit our wallets. And that's how it's coming. The government, as part of a wide-ranging revision of taxation regulations, quietly prepares to liquidate 1 of the most popular reliefs, which millions of Poles have benefited from for years – Internet discounts. Change to enter into force from 1 January 2025, means that from our yearly accounts the anticipation of deducting up to PLN 760 will disappear. For many households it is simply a real failure of respective 100 zlotys, which have remained in their pocket so far. Experts are alerting that, although officially speaking of "simplifying the system", the real aim is to look for additional savings in the state budget at the expense of citizens. This decision was made without extended public consultation, and its details are hidden in a comprehensive law on the digitalisation of administration, which makes it possible for many taxpayers to learn about the forthcoming change only erstwhile completing the PIT declaration for 2025.

End of net relief. What does that mean for your wallet?

The discount on the internet, although not the highest of possible deductions, enjoyed large popularity due to its universality. So far, each payer could deduct from income expenses incurred on the home net up to PLN 760 per year. Importantly, deductions could only be utilized in 2 successive taxation years. It was real help, especially for those starting a career or starting a family.

The liquidation of this relief since 2025 represents circumstantial financial losses. Their amount depends on the taxation threshold in which the payer is located:

  • Clearers under the first taxation threshold (12%) will lose up to PLN 91.20 per year.
  • Tax payers in the second taxation threshold (32%) will lose up to PLN 243.20 per year.

In the case of marriages that settle together and both could benefit from the relief (if they have not done so before), the yearly failure may scope even PLN 486.40. Although the individual amounts may seem small, on a yearly basis the household budget, especially at rising cost of living, is simply a noticeable difference. It's money that could be utilized to pay an extra bill or unplanned expenses.

Why is the government eliminating a popular deduction? authoritative and unofficial reasons

The Ministry of Finance argues that the elimination of the online credit is part of a larger improvement aimed at simplifying and sealing the taxation system. In authoritative communications thesis appears that this relief has become archaic. Officials argue that in 2025 net access is already a standard and a common good, not a luxury to be purchased with taxation relief, as was the case in the early 21st century erstwhile it was introduced.

However, financial analysts point to a second, much more crucial reason – seeking savings in a tight state budget. The discount on the internet, due to its popularity, generated for the budget a cost of respective 100 million PLN per year. Its liquidation is simply a simple and comparatively small media way to increase taxation revenues. This decision forms part of a wider trend in the gradual simplification of various taxation deductions and preferences, which in practice leads to an increase in the real fiscal burden on citizens without officially expanding PIT rates.

Who's gonna lose the most? These groups will feel change the most

Although the change will affect all those who planned to benefit from the relief, any social groups will feel it peculiarly badly. The first failure line is:

  • Young people and students: People who have only just entered the labour marketplace and are making a PIT declaration for the first time frequently hoped for this relief as a form of start-up support.
  • Remote workers and freelancers: For them, fast and reliable net connection is an essential working tool. Although they bear constant, advanced costs, from 2025 they will not be able to partially compensate them as part of this relief (unless they carry out business activities).
  • Lower income families: In households where all euro counts, the failure of up to 90 PLN per year is simply a noticeable blow to the budget.

Thus, the decision of the government strikes groups that are most active and educational in the age of digitization, for which the net is essential for everyday operation.

Last chance to benefit from the relief. How to prepare for changes?

The most crucial information for all taxpayers is that The changes will not enter into force until 1 January 2025.. This means that they relate to income generated from that date. We inactive have a chance to benefit from the old rules for the last time.

When calculating the income taxation for 2024 (what we will do in early 2025), the discount on the net will inactive apply. This is the last bell.to usage it if we meet the conditions – that is, we did not usage it at all or did it only erstwhile last year. It is worth collecting all invoices for the net from 2024 to make maximum usage of the available deduction in the next year's PIT statement. This is the only way to at least partially minimize the negative effects of the forthcoming abolition of this popular taxation preference.

More here:
The silent end of the net relief. The government will take hundreds of zlotys from 2025

Read Entire Article