Solidarity tax – a new solution to support people with disabilities

2019 is the first year in which incomes of all Polish citizens will fall under a new tax duty – the solidarity tax (DSF-1). However, it will affect only the wealthiest taxpayers. The amount collected this way will fund the newly founded Solidarity Support Fund for the Disabled.

Although the regulation introducing the solidarity tax passed in October 2018, its financial outcome will take place in 2020 after the tax settlements for 2019. Only the wealthiest Poles will pay the new tax – specifically natural persons who earned more than 1,000,000 PLN in the previous financial year. The solidarity tax rate will equal to 4% of the surplus of said amount. It is important to remember that the new tax responsibility excludes CIT payers.

Next year, taxpayers will have to personally check whether they are eligible to pay the tax, as well as calculate its exact amount. All this until April 30th.

How to calculate the Solidarity Tribute fee?

To get the calculation basis for the new tax, one must add the total income for the previous year and reduce it by the following amounts:

• contributions for disability, sickness, and accident insurance,
• dividends from a foreign-controlled company,
• income from a paid resignation from a share in a foreign-controlled company.

The regulation clarifies it in articles 26 and 30f.

Every taxpayer will have to fill and submit a new declaration form. Although the template of the document is not known yet, we can expect it to be similar to other tax declarations. The form may be signed with an electronic signature, including a qualified signature.

The Solidarity Support Fund for People with Disabilities has been established under the regulation that came into force on January 1st, 2019. The initial financial support from the solidarity tax will strengthen the Fund’s budget after the tax settlements for 2020. Before this happens, the Fund will be financed from annual contributions to the Labor Fund.

The Ministry of Finance expects that due to the first stream of payments of a solidarity tax, the Fund will receive approximately 1,15 PLN billion, which combined with the Labor Fund financial aid, will sum up to 1,8 PLN billion annually.