If in the settlements with counterparties  in the framework of business activity you use cash and not a bank account, you should know that from 1 January 2017 the limit on transactions which may be carried out without using the bank account will be reduced from the current EUR 15 000 to PLN 15 000

This means that any transaction above this limit (regardless of the number of payments made in the framework of this transaction), must be made through your account.  This will also apply to foreign currency transactions.  They will be converted into PLN at the average foreign exchange rate published by the National Bank of Poland on the last working day preceding the date of the transaction.

Sanctions for exceeding the threshold of PLN 15 000

Entrepreneurs who contrary to provisions make transactions above PLN 15 000 in cash rather than via bank account, will not be able to include this amount as tax deductible expenses (in the event of failure to reduce the costs of obtaining the revenue —  they will have to increase revenues).

An act introducing relevant changes in the regulations on the freedom of economic activity and the income tax of natural persons and legal persons was signed on 30 May 2016 by the President of the Republic of Poland.  Draft of amendment act can be found here.

What kind of obligations do the provisions concern

Importantly, the tax rules refer to the concept of ‘payment', resulting from the transaction, and therefore only cover the  manner of settling liabilities, by making payment.  These rules do not apply to other forms of regulation (expiring) commitments that do not involve payments and are not linked to the payment account. These forms of settling liabilities such as, inter alia, the compensation (deduction), barters  are not covered by the provisions concerning quota (the contracting parties do not make "payments"). 

See ruling (2461-IBPB-1-2.4510.881.2016.1.JP) regulating the commitments above PLN 15 000 by means other than the payment. 

In the case of payments, which take place by means of a payment instruments, linked to the payment accounts, including payment cards as well as payments made through intermediary systems such as PayPal PayU, etc., the requirement to carry them through a payment account will be fulfilled .

Legal basis

The Act of 13 April 2016 amends the provisions of the Act of 26 July 1991 on income tax for natural persons and the Act of 15 February 1992 on taxation of the income of legal persons

Since 2017, the amended Article 22 of the Freedom of Economic Activity Act shall read as follows: "making or receiving payments related to business activity are made through a payment account of entrepreneur, in any case where:

1. the party to the transaction, to which the payment is related, is another entrepreneur and
2. the one-off value of the transaction, regardless of the number of the resulting payments, exceeds the equivalent of PLN 15 000, while transactions in foreign currencies shall be converted into PLN at the average foreign exchange rate published by the Polish National Bank on the last working day preceding the day of the transaction."

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