PIT in respect of activitity (tax scale, flat-rate tax, lump sum on registered income, tax card)
PIT (personal income tax) is known to you. Every year you submit an annual tax return in which you state your revenues, including those from the employment relationship, civil-law contracts and others.
Personal income tax is a personal tax which means that a tax payer is any natural person obtaining income, including a natural person obtaining revenue from business activities.
Which entrepreneurs pay PIT
You will pay the PIT on the principles specified for entrepreneurs if you run a sole trader's business or if you are a partner in a partnership: civil law partnership, registered partnership, professional partnership, limited partnership.
In which office do I settle PIT
You settle your PIT in the tax office competent for your place of residence.
An exception to this rule is the tax card. If you choose this form of taxation, the office where you settle will determine the location of the organized establishment (as specified in the CEIDG application).
Subject matter of taxation
All kinds of entrepreneurial income from activity are subject to taxation (with some exceptions specified in tax regulations, such as compensation).
In the case of activity, it is important to distinguish between revenue, costs and income:
- revenue is the net profit, e.g. from the sale of goods, provision of services (also in case when they have not been actually received), but also from the sale of the company's assets or interest on company deposits
- tax-deductible costs are, in general, your business expenses.
- income is the surplus of revenues from such activity over the costs of their acquisition achieved in the tax year. The income (after deducting social security contributions and other deductions) is subject to the following taxation
Registration of the taxpayer (NIP)
Each entrepreneur uses a NIP number in his tax returns. If you are self-employed, you do not have to file an application for a tax identification number (NIP) with the tax office separately. This notification is submitted as part of the application for entry in the Central Register and Information on Economic Activity at the time of registration of the company.
If you are a partner in a registered partnership, a limited partnership, a professional partnership, a limited joint-stock partnership, but you have not registered as an entrepreneur with CEIDG, you must file your application for NIP at the tax office (on NIP-7 form) on your own. The shareholders of a registered partnership, limited partnership, limited joint-stock partnership, according to the insurance regulations, are the payers of insurance contributions, and the payers should use the NIP.
How does an entrepreneur's PIT differ from other natural persons?
If you are an entrepreneur:
- you will be able to settle taxes yourself - i.e. calculate income, deductible expenses and tax
- you will also calculate and pay (monthly or quarterly) tax advances yourself
- you can choose between several forms of taxation:
- general rules, i.e. taxation according to the tax scale or flat-rate tax
- lump-sum on registered income
- tax card
- you can take advantage of benefits for entrepreneurs - e.g. tax reliefs for research and development
- you can settle the loss and pay less tax
- you can depreciate your fixed assets
What you should be aware of before you start settling PIT
Choose the right form of taxation for you and report it
The basic form of taxation is the so-called tax scale, but (depending on the type of activity, income) you can choose other types of taxation. Choose one that is most profitable for you. The form of taxation is reported upon registration of the company. You should also choose how often you want to pay the advance payment/tax (monthly/quarterly).
If you do not receive a NIP upon registration, apply for NIP.
In the case of sole trader activity, you do not have to submit any additional documents for NIP assignment - just fill in the application for company registration and you will receive the NIP automatically. However, if you are e.g. a partner in a partnership, you will not receive a NIP when registering the partnership (only the partnership will receive its NIP). You should submit the NIP-7 form to the tax office yourself.
Make use of National Tax Information
If you have questions concerning tax issues
- 22 330 03 30 (from landline)
- 801 055 055 (from mobile phone)
- +48 22 330 03 30 (from abroad)
Monday to Friday from 7 a.m. to 6 p.m.
On the Tax Portal page you will find a lot of useful information on tax settlements and tax forms.
e-Deklaracje system allows you to submit your tax return online.
In addition, the biznes.gov.pl Help Centre is at your disposal. Seek the help of our tax consultants