Poland's flat-rate tax distorts the system — government takes first step to fix it

Poland's lump-sum income tax, designed for small entrepreneurs, has become a loophole allowing high earners to avoid paying their fair share, according to a money.pl survey of economists. Rather than encouraging investment, it incentivises tax optimisation at the budget's expense. The government has now taken an initial step to reform the system. Economists warn that similar gaps exist elsewhere in Polish tax law.

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