The Council of Ministers has approved a draft amendment to the Personal Income Tax Act (PIT) that will increase the flat tax rate on winnings from 10% to 15%. The change will apply to winnings obtained from:
- contests and games organized by entities operating in the gambling market,
- betting activities,
- commercial competitions,
- prize sales and promotional programs.
First Change Since 2001
The 10% rate, in place since 2001, has never been updated despite rising incomes and significant shifts in the structure of the gaming and commercial promotion markets. The government justifies the increase as necessary to align taxation levels with current economic and social realities.
According to the explanatory memorandum, winnings are typically incidental income that do not represent a taxpayer’s primary source of livelihood and are not related to activities that the state should support with tax reliefs or preferences. The government argues that maintaining a low 10% rate “has no axiological justification,” particularly given the broader accessibility and popularity of modern gaming and promotional activities.
Fiscal Context
The tax hike also serves a fiscal purpose, forming part of a broader government strategy to increase public revenue while reducing symbolic or non-market tax reliefs. In practice, the change will primarily affect individuals who win promotional lotteries, number games, or media and retail competitions.
Although such revenues account for only a small share of overall tax income, the government claims the new rate will “bring them in line” with other forms of flat taxation, such as capital gains, which are taxed at 19%.
Effective from January 1, 2026
The new regulations are scheduled to take effect on January 1, 2026, meaning that from next year onward, winnings obtained after this date will be subject to the higher 15% tax rate.
Source: CEO.com.pl – “Rząd podnosi podatek od wygranych w grach i konkursach”
