Starting January 1, 2025, sole proprietors in Poland can take advantage of the cash PIT method (Kasowy PIT). The essence of this method is that entrepreneurs pay the PIT tax only after receiving payment from the counterparty for goods or services, not immediately after issuing the invoice. This will improve business liquidity by reducing the tax burden during the waiting period for client payments.
The Kasowy PIT method will apply not only to income but also to expenses. This means that as long as you haven’t paid an expense invoice, you won’t be able to classify it as a business expense.
Kasowy PIT will be available for entrepreneurs who:
- Have a turnover of no more than 1 million PLN in the previous tax year or are just starting their business.
- Do not keep accounting books (ksiąg rachunkowych).
This method also applies to the following forms of taxation:
- Tax scale (Skala podatkowa).
- Flat tax (Podatek liniowy).
- Lump sum tax on registered income (Ryczałt).
- IP BOX rules.
To use the cash accounting method, you must submit a declaration (oświadczenie o wyborze metody kasowej) to the tax office (Urząd Skarbowy) by February 20 of the current tax year. If the business starts during the year, the declaration should be submitted by the 20th of the month following the registration month.
Important: Transition to Kasowy PIT is voluntary. You decide if this method of calculation is beneficial for your business.
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