The Solidarity tribute has become more favorable to millionaires

According to data from the Ministry of Finance, there are up to 40,000 millionaires in Poland. These are people who achieve an annual income of at least PLN 1 million. They may earn this income on the basis of an employment contract, mandate contract, contract for specific work, retirement benefits or by conducting non-agricultural business activity. Income also includes the sale of securities.

Solidarity Tribute – no deductions possible

So far, the tax office has had a well-established ruling practice in which it stated that in the case of the so-called “Solidarity Tribute”, i.e. a 4% levy on income above PLN 1,000,000, only the social security contribution can be deducted. Losses from previous years, donations, research and development relief or rehabilitation relief could not be claimed by the Tax Office deducted from the tax base.

Solidarity Tribute – Position of the Administrative Courts

The Supreme Administrative Court opposed this view, stating in judgment II FSK 452/22:

“If the intention of a rational legislator was to prevent the deduction of losses from previous years when determining the basis for calculating the solidarity levy, such a regulation would be expressly indicated in the provisions of the Act on Personal Income Tax.”

Solidarity Tribute – possible tax deductions

Due to the rulings of administrative courts and the response to the parliamentary interpellation of the Minister of Finance, there has been a complete change in the tax office’s approach to calculating the basis for the solidarity levy. In the latest decisions, the authorities have become favorable to also deducting losses from previous years.

One can only estimate how many people showed a loss during the pandemic, thanks to which they will be able to reduce or avoid paying the 4% tax imposed by the so-called “Solidarity Tribute”.

There have also been decisions by the Tax Office that further expand the deduction possibilities. You can learn from them that bad debt relief and research and development relief are deductible, which gives taxpayers additional opportunities to avoid additional burdens.



    Dr Artur Oleś

    Attorney, Tax Advisor, EMBA

    Advocate, Tax Advisor, Doctor of Juridical Science. He specializes in issues related to tax optimizations, mergers and acquisitions, as well as criminal and fiscal penal law. Author of scientific publications devoted to, among others. tax ordinance, VAT and income earned through incentive plans in the form of shares and stock options. He has extensive experience and knowledge of law and taxation.

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