August 6 will start. The unpopular tax to be eliminated

• The Belka tax was introduced in 2002 to increase budget revenues.
• Many people often treat this tax as a "penalty" for saving.
• Over the years, attempts have been made to abolish this tax, but without success.
• The Ministry of Finance is convinced that the prepared draft amendments to the Personal Income Tax Act have already been completed - Forsal.pl reports
• Also, the president-elect Karol Nawrocki has a plan to eliminate the Belka tax.

Forsal.pl reminds that the capital gains tax, or the so-called Belka tax, was introduced in 2002 as an element of increasing budget revenues from personal income tax, in response to the difficult financial situation of the country in 2001–2002.

When it was introduced, the Belka tax took the form of a 20% flat-rate income tax on income from bank accounts or other forms of saving, storing/investing funds, conducted on the basis of separate regulations. However, it did not stop there, because already in 2004 a uniform 19% rate was introduced, and the list of taxed income was expanded to include other forms of investment, including securities.

According to the current regulations – as calculated by Forsal.pl – there is a 19% flat-rate tax on income from monetary capital:

• interest on loans,
• interest on securities,
• interest on savings and bank accounts (excluding funds related to business activity),
• dividends and other income from participation in the profits of legal persons,
• income from capital funds,
• income from life or endowment insurance contracts,
• funds paid to persons indicated by deceased OFE members,
• income of members of an employee pension fund from the transfer of shares to the fund's assets,
• income from the liquidation of a partnership, the withdrawal of a partner or a reduction of the capital share, as a result of which Poland loses the right to tax the future sale of assets.

In turn, the 19% income tax applies to income obtained from, among others:

• the sale of securities or derivative financial instruments against payment and the exercise of rights arising therefrom,
• sale of shares (stocks) for consideration,
• sale of shares in a cooperative against payment,
• redemption, repurchase, purchase or other extinction of units in capital funds.

The portal emphasizes that there are many arguments for eliminating this tax, because it negatively affects the possibilities of saving and building capital within households. Many Poles perceive the tax as a "punishment" for saving - Forsal.pl lists.

There have been numerous attempts to abolish the Belka tax, but to no avail. According to Forsal.pl, the reason for the fiasco may be the changes that the Ministry of Finance is preparing. In response to an interpellation by MP Wojciech Michał, the ministry informed that the changes would consist of introducing two key solutions to the Personal Income Tax Act:

• exemption from taxation of income (revenue) from long-term savings – i.e. those held for at least one year, and
• introducing a tax-free amount for income from capital investments, up to certain annual limits.

The Ministry of Finance explains that the draft amendments to the Personal Income Tax Act have already been completed.

Importantly, Karol Nawrocki announced changes to the Belka tax during the campaign. According to him, on August 6, the first day in office, he will submit a bill "eliminating the Belka tax" - explains Forsal.pl. The proposal assumes exemption from taxation of capital gains up to PLN 140,000 of income per year.

On his first day in office, Karol Nawrocki also plans to submit key bills announced in his program. However, as the portal reminds us, both the president's proposals and the ongoing legislative work in the Ministry of Finance will ultimately confront each other in the Sejm. The final shape of the Belka tax reform will depend on the ruling coalition.

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