Poland plans tax reforms for workers and family foundations

The Polish government is preparing significant tax reforms aimed at both supporting workers and curbing aggressive tax avoidance. One initiative focuses on adjusting the tax scale to protect the purchasing power of employees. As wage growth has outpaced tax adjustments, many taxpayers are being pushed into higher tax brackets. Proposed solutions include increasing the tax-free threshold, currently set at 30,000 PLN, and reforming the first tax bracket to smooth the transition from a 12% rate to the 32% rate that applies to income exceeding 120,000 PLN.

Simultaneously, the Ministry of Finance is moving to regulate family foundations. Recent analyses suggest that many of these entities are being used instrumentally for tax optimization rather than their intended purposes. According to Deputy Finance Minister Jarosław Neneman, there are indications that nearly half of these foundations may have been established solely to avoid taxation or defer liabilities. The government's new legislative project aims to close these loopholes and ensure that family foundations are not used as tools for aggressive tax avoidance.