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Income tax. But before moving on to the essence of taxation, it is necessary to clarify some terms that may cause confusion among readers:

Income (dochód) - this is how profit is called in Poland, i.e. material benefits received from the activities of a company minus expenses associated with this activity. Taxes, social and medical fees, and other necessary payments cannot be considered expenses. without taking into account expenses is called in Poland receipt (receipt, przychód), however, for legal entities only dochód is relevant, and przychód is not considered. There is the term “Corporate Income Tax” or CIT (from English, Corporate Income Tax We will consider this type of tax further, however, despite the name, this is not the only type of payments to budgets that legal entities must make. We will denote a specific type of tax by the usual term CIT.

PIT is a personal income tax. To all employees at the beginning of each year, employers PIT-11 document is distributed.

But not everyone knows what it is and what to do with it. Let's look into this issue!

Persons residing in Poland and receiving income in Poland have tax obligations. This means that they must payIn Poland there is a tax on the amount of all income received. The tax return must be filed betweenFebruary 1 and April 30.Even if you are already in Poland, you are still required to file a tax return for the previous year. Advance payments for the tax office.

      During the year, the employer himself makes deductions from your salary to the Polish tax service, health fund, and so on.

These taxes make up the difference in wages between gross and net. These deductions for the year are called advance payments. And they do not have to be accurate down to the penny.

It may be that during the year, the employer will pay a little more or a little less in taxes from your salary.</ p>

Total Compare this amount with what has already been paid during the year (the sum of all advance payments). At the end of the year, you are required to file a tax return, which will indicate your entire income for the year. All taxes that have already been paid during the year and possibly benefits that you have. Using simple calculations, you will get the amount of taxes you must pay for all income received last year.

What is PIT-11?

PIT-11 is a document with a table that contains data on your income for the year and taxes paid. If you work in Poland, your employer deducts income tax from your salary. By the end of February, the employer must send you Form PIT-11, that is, a document that contains information about your income that you received while working for him in the previous tax year, and information about paid deductions from wages for income tax. If you have worked in several places (different employers), obtain a PIT-11 from each employer. A PIT-11 is issued if the foreigner is a tax resident of Poland. It indicates the taxpayer’s place of residence in Poland. PIT-11 will be handed over to both the employee and the tax office at the employee’s place of residence in Poland. After receiving PIT-11, the employee must submit PIT-37 in the tax return.

What is PIT-37 ?

PIT-37 is the annual tax return that you must submit for the last year of work in Poland. If you do not carry out economic activities, then based on PIT-11, you should fill out PIT-37 and submit it to the appropriate tax administration department. 

< /p>

Deadlines

Declaration PIT-37 must be submitted by April 30 of the following year. For example, a 2023 PIT-37 return must be filed by April 30, 2024).

At the same time, you are required to pay the appropriate tax if, as a result of the final calculation, it turned out that the amount of deductions from your income was less than the tax that you must pay on the total amount of income. and you will see whether you have to pay something extra or you have already paid more than necessary, and you can get this difference back. The tax office will check all the data, and if it finds no errors, it will return your money. Or it will expect you to pay extra for the deficiency. 

       Methods of filing a tax return in Poland The declaration can be submitted either in paper form at one of the tax office offices at your place of residence, or the declaration can be submitted electronically via the Internet. Submitting a tax return online is the fastest and most convenient, eliminating the need to waste time going to the tax office in long lines. Another advantage of this method is that the program itself automatically carries out all the necessary calculations, minimizing the likelihood of any error. 

What happens if fail to pay taxes on time?

Often foreigners living in Poland, when getting a job abroad, hope that the tax office will not find out about their foreign income. However, this is far from the case.

Firstly, fiscal officials can obtain information about the availability of income from Ukrainian\foreign banks. For example, if a foreign employer transfers remuneration to an account in a Ukrainian bank, or if an officially unemployed person opens a deposit for a large amount.

Secondly, there is an exchange of tax information between Ukraine and many countries.

ZUS (Zakład Ubezpieczeń Społecznych or "Social Insurance Office")is the Polish government body responsible for health and pension insurance for citizens.

VAT is Value Added Tax (VAT\VAT\GST\DPH\MwST).

Standard rate is 23%.

VAT(ValueAddedTax) - tax on the purchase of local consumption goods, products , services, clothing.

As a rule, this tax is already automatically included in the price of the product or service (priceGROSSIf the price is indicated in NET -). this means that VAT is not added. 

There are different VAT tax rates in Poland. In turn, the rate depends on the type of product and service:

• 23% - standard VAT rate;

• 8% - some food products and fruits, fertilizers, newspapers and magazines, some books, certain pharmaceutical and medical products, transportation of passengers (buses and taxis), hotel services;

• 5% - not all fruits and nuts, spices, some books and publications;

• 3% - some food products, agricultural products, livestock and fisheries. 

• 0% - export goods, international transport services, computer equipment, digital data transmission devices.

The following are exempt from VAT tax:

health, social security, education and other government agencies.

A foreigner who has his own business in Poland is required to pay to the tax office VAT, which he adds to his clients on goods/services. </ p>

Taxpayers paying VAT monthly submit JPK V7M as in the declaration form, and in the registration partby the 25th dayof the month for the previous month.

Quarterly, taxpayers submit JPK V7M

registration - before the 25th day of the month following the month, for which the file is being submitted

declaration - by the 25th day of the month following the quarter for which the file is being submitted

VAT tax is paid to the tax office at the place of employment.

Sick leave sheetis a certificate issued by a doctor to an employee who is unable to work for a certain period of time (for example, due to illness). its absence is justified. Sick leave is colloquially referred to as"L4" (in the past this was a form of sick leave).

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According to the government website patient.gov.pl, from December 1, 2018, doctors and paramedics issue benefits only electronically form. So, we are talking about electronic dismissal (abbreviated: e-ZLA).

Umowa o Prace (UoP) Employment contractis a legal act consisting of the presentation by the employee and the employer of a joint expression of will confirming the employee’s obligation to perform a certain type of work for the employer and under his supervision, in a place and at a time specified by him. The employer, under the employment contract, undertakes to hire the employee for remuneration.

The employment contract must be concluded in writing. Otherwise, the employer must confirm the agreement in writing (the parties to the contract, type of contract, terms of the contract) no later than the employee’s start date.

Types of employment contracts

Provisions of the Labor Code determine the types of employment contracts that can be concluded with employees. An employment contract can be concluded:

• For a probationary period
• For a limited period.
• For an indefinite period ,

What is included in the employment contract

The employment contract specifies the parties to the contract, the type of contract , the date of its conclusion and working conditions and remuneration, in particular:

• Type of work;
• place of work or place of work or information that the employee himself determines the place of work ;
• remuneration corresponding to the type of work, indicating the components of remuneration;
• Working time;

Traditionally, an employment contract type of employment contract offers:

paid leave: 21-26 days (depending on length of service);

guarantee of social and health insurance ZUS/NFZ;

remuneration for overtime work (so-called overtime);

minimum wage.

We want It should be noted that the Ministry of Labor, Family and Social Policy is working on a project that will provide everyone with 26 days of vacation, regardless of length of service (time worked).

Also on on the basis of such an agreement - or rather, on the basis of the very fact of performing work for the employer - it will be possible to obtain a residence permit.

We remind you that if you are not exempt from the need to obtain a permit for a job (Polish citizen, Polish ID, student status, etc.), the employer will be obliged to issue the necessary documents for you, such as:

• "invitation to work" - application - oświadczenie;
• work permit - for work - zezwolenie;
• "market test" - opinion of the headman - opinia starosty.
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Termination of an employment contract

The employment contract is terminated:




• with the consent of the parties,
• after the announcement
• without warning,
• after the expiration of the period for which it was concluded,
• on completion of the work for which he was hired.




Document templates can be downloaded from our website for free.

Umowa o dziełois one of the simplest contracts concluded in Poland between the customer and the contractor.< /p>

This type of contract is used in areas where performing work for customers involves the creation of a specific specific project or work - the so-called dzieło (IMPORTANT: this must be one-time relationship, not permanent)

The agreement provides for:

< li>lower taxation - paying only income tax - PIT;
• more flexible working conditions;
• possibility of using a 20% / 50% rate on tax-free expenses;
• lack of compulsory health insurance - NFZ;
• lack of compulsory social insurance - ZUS;

Contract can be drawn up in free form, provided that it indicates:

• type and descriptions of the work performed*;
< li>time frame for completing the work;
• information about the contractor’s remuneration;

There are no restrictions for foreigners. Polish employers can use “umova o dzelo” both when working with EU citizens and with foreigners from third countries (Russia, Ukraine, Belarus, Kazakhstan, etc.).

< /p>

Provided that for a foreigner, the employer has registered the appropriate document allowing him to work:

• “work invitation” - oświadczenie,< /li>
• work permit - zezwolenie na pracę,
• “market test” - opinia starosty.

Unless a foreigner is exempt from such a need, for example, he has: permanent residence, an EU Resident Card, a Pole`s Card, a diploma from a Polish university, and in other cases.

Taxes under the agreement “umowa o dzieło”

As we have already indicated above, when using this agreement, there are no mandatory contributions to health and social insurance, therefore monthly tax expenses are significantly less.

Only advance payments for personal income tax - PIT are paid.

Expenses not taken into account for tax purposes are 20% or 50%, depending on whether you transfer copyright to the project (work) you created. The remaining amount is subject to the specified PIT tax of 17%.

Possibility of using such an agreement

</ p>

I would like to note once again that the use of such an agreement is associated with a number of more stringent requirements imposed by law.

The work done must have the features of the above dzieła, that is, a project. It is illegal to use this type of agreement for any type of activity related to the provision of services of a cyclical nature.

If government authorities identify facts of improper use of this type of agreement, in addition to re-registration of the relationship, the parties will be forced to pay all unpaid fees.

Examples when such an agreement can NOT be used

• providing consulting;
• online customer service;
• creation of software and its constant updating;

As we indicated above, a correctly drawn up contract with a client must contain detailed technical specifications - specyfikacja.

Attention: any work that has the features of constant and repetitive, which also does not have detailed and carefully set goals:

the work of a programmer on different projects, the work of a designer who receives a new task every day, conducting webinars, online classes - is equivalent to permanent work.

What is Umowa zlecenia - a contract of agency?

A contract of agency is a civil law contract regulated by the Civil Code. Due to the fact that the provisions of the Labor Code do not apply to this agreement, the person executing the order has only the rights arising directly from the content of the agreement.

Umowa zlecenia - hourly rate in 2024.

K Mandate contracts are also subject to a pre-determined minimum wage in the form of a minimum hourly rate. The hourly rate is closely linked to the minimum wage and will change as the wage changes.

In 2024, the minimum hourly rate in the first half of the year will be27 .70 PLN, in the second half of the year it will be 28.10 PLN per hour of work.

It is worth noting here that in connection with determining the minimum hourly rate the entrepreneur will have to take into account time worked by the contractor. Records must be kept in such a form that the regulatory authorities can check whether the requirements regarding the minimum hourly rate have been applied.

Binding agreement - contributions

When hiring a contractor on the basis of an agency agreement, the entrepreneur must remember that in the case of such an agreement, an obligation arises to calculate and pay social contributions to the ZUS. The client is only exempt from paying social security contributions for the contractor if the contractor has other insurance entitlements that equal or exceed the national minimum. In this case, only the health insurance contribution will be required.

If you hire a student under 26 years of age, the client is not required to report him to the insurance company ZUS

Applications for ZUS contributions must be submitted within 7 days of the commencement of the mandate contract using the ZUS ZUA application form.

The entrepreneur enrolls the contractor in all compulsory social insurance; only sickness insurance is voluntary.

</ p>

If the customer hires a contractor under an agency agreement and at the same time is bound by an employment contract, then the contractor is considered as an employee and is subject to all types of social and health insurance under the agency agreement.

Umowa zlecenia – what rights does the contractor have?

The agency agreement does not protect the interests of the employee. The employment contract includes specific notice periods, annual leave, sick pay, benefits and overtime pay that can be claimed in court. The Contractor does not have any of the above rights.

Umowa zlecenia does not count towards length of service and does not provide any guarantee of continuity of employment. From the point of view of the entrepreneur, this is more profitable for him, since he has practically no further obligations to the contractor and can quit his job overnight. However, the client must remember that this right also extends to the contractor, who can immediately leave the company if the contract does not regulate the notice period.

Agreement of assignment and labor relations

Moreover, the contractor must be careful not to be taken advantage of by the client. The main thing is to ensure that the order carried out by contractors does not actually meet the criteria of labor relations. These criteria are, first of all:

• permanent place and work schedule,
• performing work within organizational and official subordination,</ li>
• absolute requirement to perform work personally.

If the content of the contract of agency provides for the need to perform work in subordinate conditions personally and for remuneration, in a certain place and at a certain time, then the contract is actually an employment contract.

If the indicated signs are present in the contract of agency, the employer commits a violation of the rights of the employee. If checked by the National Labor Inspectorate, he may be fined. Moreover, if the inspector discovers a violation, he will oblige the employer to conclude an employment contractor retroactively and will be obliged to pay all amounts due under the employment relationship, vacation pay, overtime, as well as minimum wage compensation.

RODO can also be called „GDPR” and „Ogólnym Rozporządzeniem o Ochronie Danych”

C On May 25, 2018, legislation on the protection of personal data in Poland came into force. Individuals have the right to delete their personal data from any sources, and companies and government institutions must make a number of changes. 

GDPR principles

The General Data Protection Regulation must comply with the following principles:

• adequate protection of stored personal data,< /li>
• providing clients with information about the processing of their personal information, as well as permission to view their changes,
• obtaining consent to the use of personal information,
• keeping records of data processing,< /li>

introducing the principle of confidentiality by default - means introducing measures (technical and organizational) to ensure that only the data necessary for a specific operation is processed, reporting a data security breach to the supervisory authority, the so-called notification obligation, which must be fulfilled within 72 hours from the occurrence of the security event,

submission, upon request of the supervisory authority, of documentation confirming compliance with the law,

storage of documents confirming who consented to the processing of personal information, when and to what extent.

The provisions of the regulation provide for obligations that must be fulfilled by entrepreneurs and all companies processing and administering personal data.

What is personal data?

• first name, last name,
• PESEL,
• genetic data,
• health data,
• political opinions,
• racial data,
• biometric data.
• biometric data. li>

What needs to be done to comply with the GDPR rules in Poland?

Everyone who processes personal data must:

• determine what personal data is being processed
• identify the risk of violation of the rights of individuals associated with data processing</ li>
• choose appropriate measures to ensure the security of personal data.

RODO does not specify any specific measures for the protection of personal data. The GDPR says that these measures must be appropriate.

Fine for violation of the GDPR rules

In case of breach of duty referred to in the RODO, the Head of the Office for the Protection of Personal Data in Poland has the right to impose a financial (administrative) fine, the amount of which ranges from 10,000,000 euros or 2% of the turnover of a given entrepreneur, to 20,000,000 euros or 4% of the turnover of a given entrepreneur, depending on the severity of the violations.

What needs to be done after registering a company in Poland?

All these important points are always done by our accountants, but you are obliged to know this.

First you need to submit Declaration PCC-3 - income tax on civil contracts in the amount of 0.5% of the amount of the authorized capital of your company;

Declaration NIP-8 – registration of the company as a tax payer with the tax office.

it is also necessary, within 21 days from the date of registration, you must send the completed NIP-8 form to the tax office at the place of registration, which contains information about the company, its bank account and accounting firm. The same document is submitted in order to keep the accounts of your company were displayed in the so-called register (Biała Lista).

Registration in the CRBR

Required within 7 ( seven) working days from the date of registration, information about the ultimate beneficiaries (owners) of the Polish company must be submitted to a special register. This is an important issue, since the law provides for a fine (up to 1 million zlotys) for failure to fulfill the obligation. To submit information to the register of beneficiaries, the manager must produce a PESEL tax number and an EPUAP digital signature or obtain a qualified digital signature.

Other responsibilities

Every company needs to open a bank account. To do this, the manager must personally appear at the bank branch to complete the necessary documents and conclude an agreement. You must have a passport and an extract from the KRS of the newly formed society with you.

Make an EORI certificate

This is the number that assigned to enterprises for customs purposes upon registration in the Entrepreneur Registration and Identification System. The key goal of the EORI system is to speed up customs procedures for legal entities and individuals who are engaged in economic activities in the EU or participate in customs operations.  < /p>

VAT-R \VAT-EUdeclaration – for registration of a company as a payer for international trade and provision of services. But this process is not quick and requires your involvement in the inspector’s questions.

During the process of registering a company, KRS may request additional documents or information from you. Or discover an error in the submitted documents. In such cases, the registrar will send you a letter to your registration address. If you do not receive it on time, registration may be delayed.

Immediately after submitting documents for registration, you should enter into an agreement with a “virtual office” to ensure normal selection of correspondence from the new company . 

All these aspects and necessary actions, our specialists will help you do 

Types of taxes in Poland 2024

Friends, let`s look at the most basic and main taxes:

tax on goods and services (VAT) - VAT;

personal income tax - PIT;

corporate income tax - < strong>CIT,

VAT tax (VAT) in Poland

As in others countries of Europe, in Poland there is a tax on goods and services - Podatek od towarów i usług. That is, the so-called value added tax.

Standard rate VAT. - 23%, but Polish legislation provides for a number of exceptions when a preferential rate may be applied.

But for the export of goods to the territory of the European Union, the VAT rate is 0%

In Poland, preferential rates mean reduced rates of8%and 5%that apply to certain goods and services.

The 8% tariff applies to: 

• newspapers and magazines, with the exception of special thematic newspapers; 
• agricultural services; 
• medicines and pharmaceutical products; 
• tickets for cultural events; 
• construction industry. 
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5% rate is imposed on such goods as: 

• books; 
• special thematic newspapers, etc. 
< /ul>

From February 1, 2022, Poland lowered the VAT rate to 0% on food products, as well as on gas. The VAT rate on thermal energy fell from 8% to five, and the fuel rate was reduced from 23% to eight.




< strong>CIT tax

CIT - Polish corporate income tax - podatek dochodowy od osób prawnych.




Standard CIT rate - 19%, but Polish legislation provides for a preferential rate of 9% - the tax rate for small companies whose annual turnover was less than 1,200,000 €.




< em>Important: The 9% rate cannot be applied to companies that plan to provide financial services in Poland.




The tax base is in This situation is “income” - dochód. “Income” under Polish law is the difference between “receipts” (przychód) and “expenses of the company” (koszty). 

The choice of the type of settlement with the national treasury: monthly or quarterly, does not affect the CIT rate for the company. 

The obligation to pay taxes is determined based on whether the company’s management has a registered place of business in Poland. If there is one, then all income is taxed, regardless of where it is received, and if no - then only those that the company received in Poland.




PIT tax

PIT tax is traditional tax “on personal income” (NDFL). 




Attention: if you live in Poland for more than six months and are employed in a Polish company - you are required to pay taxes to the Polish treasury.

If you stay in Poland for more than 183 days a year, you automatically become a resident taxpayer. /strong>




The tax-free annual income of an individual has been increased in connection with the new “Polski Ład” reform and currently (February 2024) is30 000 PLN.




At a rate of 12% income up to 120,000 PLN is taxed (with the deduction of the so-called annual amount reducing tax - 3600 PLN).




Income over 120,000 PLN is taxed at a rate of 32%. If you received income above this amount, you will pay 12% of 120,000 PLN - and 32% of the amount exceeding 120,000 PLN. 




Please note that , in accordance with Polish law, you, as an individual, are required to report to the state treasury for the income received.




To do this, you need to submitbefore April 30 information about income received or loss incurred - annual PIT declaration. 




Responsibility for incorrectly calculated or incorrectly completed PIT lies with you.

< p>If you work in a Polish company, then, according to the standard procedure, you will receive form PIT-11 from the financial department, and you yourself undertake to send the completed form PIT-37.

Ryczałt -Accounting lump sum payment is one of the available forms of income taxation (along with scaled taxation, flat tax or tax card) When choosing a form of taxation, the interested party must take into account the planned profit of the company. , the tax burden (tax rates), as well as the costs incurred to achieve these incomes. The subject of business activity is also important. After a thorough analysis of the above factors, the choice of the form of taxation should not cause any problems. The choice of the form of taxation for a person starting a business is based on filing. CEIDG-1 application for admission to any city/municipal institution. The change in the tax form must be reported before the 20th day of the month following the month of receipt of the first income, in the application for changing the CEIDG-1 entry or in the declaration to the head of the tax service.</ p>

In case taxpayers start their activities during the year, we inform about the choice of taxation form by the date of application to join the CEIDG.

< br>

ATTENTION! If the taxpayer is late with this choice, it will be calculated according to the general rules according to the tax scale.

The registered lump sum payment can be used in the following situations:

• when receiving income from non-agricultural business activities (individual entrepreneurship, civil partnerships of individuals and general partnerships of individuals),
• when receiving income from individuals persons performing freelance professions, a strictly defined list of these professions (doctor, dentist, veterinarian, dental technician, midwife, nurse, translator, teacher providing educational services during school hours),
• when receiving income from rental agreements , sublease, lease and similar individuals, if these agreements are not concluded within the framework of business activity
• when the clergy receives income.

Taxes 12%-8.5% PKD codes for IT specialists 

Group of taxpayers With such a ratio of high income and low expenses is the IT industry, in particular testers and programmers. To avoid paying high taxes, it is worth knowing the form of taxation, which is a one-time tax. Let`s check how PKD codes in IT affect the flat rate!</ p>

Two fixed rates - 8.5% or 12%

Since 2022, the IT industry has been moving within two flat rates, i.e. 8.5% or 12%. These are much lower tax rates than the 12%/32% for the tax schedule or 19% for the flat tax. The lower flat rate compensates for the inability to include expenses when calculating the tax.</ p>

PKD codes in IT at a flat rate of 12%.

According to Art. 12 sec. 1 paragraph 2b of the Law on Income Tax with a fixed rate on certain income received by individuals (hereinafter: the Law on Lump-sum Payment), a rate of 12% applies incl. income received from the provision of services:

related to the issue:

The tax on general principles is the most popular and most widely available form of taxation in Poland. Its choice allows, among other things: to take advantage of all available tax benefits.< /p>

The form of taxation depends on the amount of income tax

The choice of the form of taxation is one of the main issues that should be taken into account at the stage of creating a company.

Entrepreneurs can choose: tax on general principles, single tax or lump-sum tax.

The decision is important because the form of taxation affects the method of calculating income tax and, therefore, its amount. It also affects the formalities that must be followed in connection with the calculation, determines the eligibility for benefits and deductions, and the type of annual assessment presented. forms.

tax on general terms has a number of advantages

Due to the greatest accessibility and a number of advantages, the most popular form of taxation is a tax on a general basis. The tax amount here is calculated as a percentage of income - income minus expenses.

There are two tax rates: 12% (for income up to PLN 120,000) < /strong>and32% (when income exceeds PLN 120,000). The main advantages of the general principles include:

• take advantage of all tax benefits,
• joint settlement with your spouse,
• tax-free amount.
• li>Entrepreneurs who have chosen a tax according to the general rules are required to maintain a Book of Income and Expenses.

This is a visual table that summarizes income and expenses. KPiR consists of several columns, including: dates (incurring expenses, receiving goods, receiving income, sales report), details of counterparties, descriptions of economic events, comments and remarks. In the Book, each event is assigned a serial number. KPiR also contains the amounts of all income and expenses for a certain period.

Calculation of advance income tax on general principles

An entrepreneur using the general rules is required to determine the tax base, which is income minus expenses. The advance payment is calculated cumulatively based on the income received since the beginning of the year. The entrepreneur should deduct the paid ZUS contributions and the costs of generating income from the income. After calculating the base, it must be rounded to whole zlotys.

The resulting amount is then multiplied by the appropriate rate (12% up to 120,000 zlotys) and reduced by the amount reducing the tax ( PLN 3,600). If your tax base exceeds PLN 120,000, then multiply the excess by the 32% rate and add PLN 10,800 (90,000 x 12%) to the result. Finally, the advance payment for a particular month is reduced by the amount of advance payments paid in previous billing periods. And again the amount received is rounded to whole zlotys.

When should advance payments be made?

Tax according to general rules paid monthly or quarterly. The entrepreneur must take care of this before the 20th day of the month following the billing period. Therefore, in the case of monthly payments, the tax, for example, for May, must be paid before June 20.

With a quarterly system, advance payments are paid to the tax office in the month following the given month. quarter, that is, advance payment for:

Q1 - until April 20,

Q2 - until July 20,

Podatek liniowy -The single tax allows you to tax all income from non-agricultural activities at a rate of 19%.

Disadvantages of the single tax

The tax calculation mechanism itself remains unchanged, since the tax base is income, i.e. the difference between income and the costs of obtaining it. Income and costs are determined on the basis of the K&R or accounting books (for example, in the case of companies with legal entities).

Unfortunately, in contrast from the tax scale, an entrepreneur calculated on the basis of a flat tax cannot take advantage of, among other things:

• tax benefits, for example, Internet tax benefits or tax benefits for children, if his only source of income is entrepreneurial activity,
• the possibility of a joint settlement with a spouse, in which the tax is calculated on half of the total joint income, and then the amount received is doubled.
• Also there is no tax-free amount, i.e. a set amount of income (in 2023 – PLN 30,000), on which the legislator decided not to levy tax. Linear taxation also creates the need to file a special declaration PIT-36L.

If, in addition to his business activities, he works full-time or works personally, for the annual calculation you will need to file two separate returns.

Single tax for whom?

There are certain requirements associated with the opportunity use of a single tax. The first limitation concerns the source of income that can be taxed using the straight-line method. According to the rules, only income from non-agricultural activities is taxed at a rate of 19%.

Income from other sources is generally subject to taxation according to the general rules. In addition, when choosing a flat tax, an entrepreneur cannot provide services to a former employer of the same nature as work performed for him on an ongoing basis in the same tax year.

As with any form of taxation, a flat tax can be chosen when starting a business or before January 20 of the new tax year. The choice is made by submitting a duly completed Form CEIDG-1.

An application submitted to the city or commune office will be automatically forwarded to the relevant tax office. Therefore, there is no need to notify the tax authority yourself.

What are the advantages of a flat tax?

However, a flat tax has certain advantages , which some entrepreneurs should pay attention to. It is supported primarily by:

• A single tax rate of 19%, which applies regardless of income received.
• Ease of calculation. The single tax excludes the possibility of using non-taxable benefits and tax benefits. The entrepreneur also does not have to remember about the tax scale and the two rates that arise. The absence of benefits for annual calculation means fewer complex applications, which in this case must be submitted along with the declaration.
• The mechanism for calculating income is identical to the scale. Thus, the entrepreneur has the opportunity to cover the costs incurred to obtain, ensure income or maintain their source in the future.

Today we will talk about how to put a company on pause without liquidation.

Polish enterprises that are temporarily not operating for one reason or another can take advantage of the opportunity provided by the Polish legislation and suspend business activities.

The suspension of activities can be carried out for a period of 1 to 24 months, provided that the company has no employees.

Documents that must be submitted to suspend the activities of the company:

• decision of the board;
• application for absence of employees at the company;
• duly completed and signed by the head of the company
• registration card.
• 
  

During the period of suspension, the company cannot carry out business activities and receive income from it. However, the enterprise has the right:

• to take actions necessary to preserve the sources of its income (maintaining an office, paying real estate taxes, etc. );
• receive income and pay money for obligations that arose before the suspension of activities;
• alienate your fixed assets.

In At the same time, a company suspended in activity has a number of important responsibilities:

• notify the tax service of the suspension of activity (within 7 days from the date of such suspension);
• continue to maintain your accounting records;
• convene and hold, in accordance with the memorandum of association, an annual regular general meeting;
• submit to the authorities tax service and register your annual financial statements with the KRS;
• take part in processes (judicial and administrative) related to the business activities of the company before the suspension;
• restore business activities at the end of the period for which it was suspended.

In addition, a suspended company, if necessary, can be subject to a tax audit on the same principles as an existing one.

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The main advantage of suspending a company`s activities is its release from the obligation to periodically submit VAT returns (VAT), as well as monthly payment of advance payments for income tax (CIT). In addition, if a member of the company paid social contributions (ZUS), then during the suspension he is also exempt from such obligation.

As we can see, the suspension of business activity is very  a useful step for a Polish company that is temporarily not operating. However, this does not automatically solve all its problems, since the board must continue to take steps to administer the enterprise.

Reasons for the liquidation of a limited liability company

The Code of Commercial Companies specifies the reasons for the liquidation of a company with limited liability. These include:

• reasons provided for in the articles of association;
• a decision of the shareholders to liquidate the company or to transfer the registered office of the company. abroad, confirmed by a notarized protocol;
• in the case of a company whose charter is concluded using a standard agreement, also a decision of shareholders on the liquidation of the company, signed by all participants with a qualified electronic signature, trusted signature or personal signature;
• declaration of bankruptcy of the company;
• other grounds provided for by law (for example, a situation where, at the time of signing the charter, the persons who signed this agreement did not have legal capacity).

Cash register – who is required to install it?

Taxpayers making sales to individuals those not engaged in entrepreneurial activities are required to register sales in cash registers. However, the Minister of Development and Finance, in a decree of December 20, 2017, on exemption from the obligation to keep records using cash registers, provided for several derogations from this obligation.

Exemption from the obligation to record sales using cash registers

Objective exceptions exempt from the obligation to register only strictly certain types of activities if the taxpayer receives income from. sales to individuals who do not carry out entrepreneurial activities only from activities exempt from registration, then there is no obligation to install a cash register.

However, if we are talking about exempt types of activities (listed in part I of the appendix to the Regulations) and those that are not exempt from tax, it should be remembered that the exemption from the need to record sales using cash register equipment applies provided that the share of turnover is the share received from exempt sales in the total turnover in the previous year exceeded 80%.

Dismissal due to an amount not exceeding PLN 20,000. turnover

The Decree of the Minister of Development and Finance also provides for an exemption from the amount of turnover. If in a given tax year the turnover from sales to individuals not engaged in entrepreneurial activities and one-time farmers does not exceed PLN 20,000. zlotys, the taxpayer is not required to install a cash register. Such an obligation arises after two months, counting from the first day of the month following the month in which the taxpayer exceeded the limit of PLN 20,000. zloty.

Taxpayers who benefit from VAT exemption because they are small entrepreneurs (mentioned in Article 113 of the VAT Law) should remember that VAT exemption does not mean , that they are also exempt from recording sales using cash registers! It may happen that they exceed the permissible turnover limit of PLN 20,000. PLN and will be required to use cash registers.

What actions must be recorded on the cash register?

§ 4 The above-mentioned provision on exemption from the obligation to keep records using cash registers defines the types of activities for which the presence of a cash register is absolutely necessary. These include:

1-delivery:

• liquid gas,
• engine parts (PKViU 28.11 .4),
• internal combustion engines used in vehicles (PKViU 29.10.1),
• car bodies (PKViU 29.20.1),
• trailers and semi-trailers; containers (PKViU 29.20.2),
• parts of trailers, semi-trailers and other vehicles without mechanical drive (PKViU 29.20.30.0),
• parts and accessories for cars (except motorcycles), not included in other headings (PKViU 29.32.30.0),
• piston internal combustion engines such as motorcycles (PKViU 30.91.3),
• radio, television and telecommunications equipment, with the exception electronic lamps and other electronic components and parts of equipment and sound and image control devices, antennas (PKViU ex 26 and ex 27.90),
• photographic equipment, except for parts and accessories for photographic equipment and accessories (PKViU ex 26.70.1) ,
• products made of precious metals or containing these metals, the supply of which cannot benefit from the tax exemption specified in Art. 113 section 1 and 9 of the Law of March 11, 2004 on Goods and Services Tax,
• recorded and unrecorded digital and analogue storage media,
• products intended for use, offered to sale or used as motor fuel or as additives or additives to motor fuels, regardless of the PKViU symbol
• tobacco products (PKViU 12.00), alcoholic beverages with an alcohol content of more than 1.2% and alcoholic beverages, representing a mixture of beer and soft drinks with an alcohol content of more than 0.5%, regardless of the PKViU symbol, with the exception of goods delivered on board an aircraft
• perfumery and eau de toilette (PKViU 20.42.11.0), for with the exception of goods delivered on board the aircraft.

2-provision of services: