If you plan to change the form of taxation, you can do so from the beginning of each year, at the latest by 20 January!
Depending on the chosen form of taxation a change requires to submit to the tax office one of the following documents:
- Declaration of chosen taxation in the form of a lump sum on registered income.
- Request for the application of taxation in the form of a tax card (PIT-16).
- Declaration of choosing flat rate taxation
- Notice of resignation from flat rate taxation (in this case the taxpayer will use taxation according to the tax rates).
Only in the case of a tax card it is possible to waive of this type of tax during the tax year. In this case, formalities must be completed within 14 days from the date of notification of the decision establishing or amending the level of tax card.
If you want to continue to make use of the existing forms of taxation, there is no need for submitting the declaration or application again.
The notification via the CEIDG
Natural persons engaged in individual business activities may notify the change of taxation form to the tax office via the CEIDG. In order to do so, one must fill in a request for modification of an entry and in case of selection of tax card attach PIT-16 form.
Notification may also be done by electronic means. Updating the entry in the CEIDG you can make here.
Remember that in order to have full online application, it is necessary to obtain or use a certified electronic signature or trusted profile (more on that in article E-service: ePK, electronic signature, trusted profile).
In the case of selection/changes in the form of taxation of activities other than one-person activity — subject to entry in the CEIDG, one can benefit from a general letter ePK and send notification to the competent tax office. Find out more about sending a general letter by means of Electronic Contact Point (ePK).
More information on the available forms of taxation can be found in the article on income tax and guide The choice of forms of taxation by entities starting economic activity.
A change in the manner of payment of advances on income tax
Please note that via the CEIDG you can also notify a change in the payment of advances (monthly, quarterly, in simplified form). Below you will find information on the timing and frequency of advance payments for each type of taxation.
TAXATION ACCORDING TO GENERAL RULES
If you settle tax according to general rules, you have to pay advance tax payments on a monthly basis by the 20th day of the month following the reference period.
Advance tax payments may also be paid on a quarterly basis, by the 20th day of the month following the quarter for which the advance tax is paid. This form may be used by small taxable persons and taxable persons starting up economic activity. Small taxable person is an entrepreneur whose income from activities along with tax on goods and services in the previous tax year did not exceed an amount in zloty equivalent to EUR 1 200 000. Conversion of amounts expressed in euro is made at the average euro exchange rate published by the National Bank of Poland on the first working day of October of the previous tax year.
In order to settle income tax on a quarterly basis, you must choose such form during the registration. If you fail to do this, but in the end you want to settle in this form, you can amend at the beginning of each new tax year (calendar year). Applications must be submitted to the tax office by 20th February of the tax year.
More on this form of taxation can be found here.
Flat rate tax
In the course of the year you must pay advance tax payments for monthly periods. As in the case of a settlement in accordance with general rules, if you are a small taxable person or a taxable person starting up economic activity, you can pay advance tax payments quarterly, by the 20th of the month following the quarter for which the advance is to be paid (this concerns only those taxpayers who receive income from an economic activity and not, for example, lease or rental). If you plan to pay advances quarterly, you are obliged to notify the head of the tax office on choosing that method until 20th February. If you start economic activity you should do so by the day of starting the activity, and not later than the date of the first income.
The notification shall be valid in the following years, unless you submit information on withdrawal from the quarterly method. More information on the flat rate tax can be found here.
Simplified advance tax payments
Taxable persons who in the preceding years settled personal income tax according to general rules or on flat rate tax, may pay the so-called simplified advance tax payments. In this case, advances shall be paid on a monthly basis by the 20th of each month for the previous month. The choice of this form (PIT payers) must be reported to the tax office by 20th February (for entities subject to corporation tax, the notification shall be submitted within a period of payment of the first advance tax payment for the tax year in which, for the first time they have opted for a simplified form of advance tax payments)
Taxable persons who have opted for the simplified method pay advance income tax payments in an amount equal to 1/12 of the amount arising from the annual tax return: 1. submitted in the year preceding the tax year, or 2. in the year preceding the tax year for 2 years (if in the year referred to in point 1 no output tax was shown ).
As far as settlements and reporting obligations are concerned taxable persons are required to pay output tax to the account of the tax office by the 20th day of the month following the month for which the lump sum is to be paid, and for the last quarter of the tax year statement. Taxable persons whose revenues in the preceding tax year did not exceed EUR 25 000 may calculate the tax and pay output tax on a quarterly basis. In this case, by 20th January the head of the tax office must be notified on the selection of this method of payment. Additional information on quarterly payment with regard to the lump sum can be found here.
To read more click here.
Upon receiving the PIT-16 notification, tax authority, by a decision, determine the amount of tax and the time limits for its payment in a given year. In the case of settlement in the form of a tax card, there is no possibility of quarterly contributions to income tax.
Income taxe in the form of paid after deduction of a contribution for health insurance, shall be paid to the account of the Tax Office not later than the seventh day of each month for the previous month, and for December by 28th December of the tax year.
The current rate of taxation of particular types of activities can be found in the notice of the Minister of Finance of 22nd October 2015 on the rates of tax card.
See information on the taxation in the form of card in the examples of activities:
- Retail trade of food products subject to taxation in the form of tax card
- Retail trade of non-food products subject to taxation in the form of tax card
- Catering services subject to taxation in the form of tax card
- Medical and veterinary services subject to taxation in the form of a tax card
- Transport services subject to taxation in the form of tax card
- Entertainment services subject to taxation in the form of tax card
- Tutoring taxed in the form of tax card
- Other services and manufacturing taxed in the form of tax card