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English translation: flat-rate taxation based on documented revenues
| 17:33 Apr 16, 2023 |
| Polish to English translations [PRO] Law/Patents - Law: Taxation & Customs / | |||||||
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|  Selected response from: Gregory Chapman Poland Local time: 13:12 | ||||||
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| Summary of answers provided | ||||
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| 5 | flat-rate taxation based on documented revenues |
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| 3 | Lump sum tax on recorded/registered revenue |
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Answers
1 hr confidence: 
Lump sum tax on recorded/registered revenue Explanation: Ryczałt od przychodów ewidencjonowanych biznes.gov.pl https://www.biznes.gov.pl › portal Ryczałt od przychodów ewidencjonowanych jest uproszczoną formą opodatkowania działalności gospodarczej. When setting up our own business activity, we must indicate the form of income taxation of business activity, during registration (for the Central Register and Information on Economic Activity). The choice is up to the entrepreneur, who in this matter should be guided not only by the economic calculation, but also by the type of activity he/she intends to conduct. If you are a partner or have a self-employment business, you have to pay personal income tax. Then, the Polish law allows you four possible variants to choose from: 1. Tax scale (general rules) 2. Flat rate tax It is a form of taxing the income with a single tax rate of 19% regardless of the amount of that income. 3. Lump sum on registered income It is form of taxation in which the entrepreneur cannot reduce revenues by the costs incurred. Depending on the type of activity performed, different lump sum rates also apply here. The amount limits on the revenues earned mean that not every entrepreneur can use this form of taxation. Additionally, art.8 of the Lump sum Income Tax Act is a catalogue of activities that are absolutely excluded from this form of taxation. Advances for the tax return should be paid monthly/quarterly by the 20th day of month following the settlement period to the micro-account of a competent tax office. However the advances for December can be paid by the taxpayer before the deadline for submitting the PIT-28 tax return, i.e. by the end of February of the following year to which the tax relates. 4. Tax card (fixed amount tax) https://pl.vgd.eu/en/newsroom/4-forms-of-income-taxation-for... Lump sum tax on recorded revenue is a simplified form of taxation of your business. The changes introduced by the Polish Deal [Polski Ład] have made more and more entrepreneurs consider switching to this form of settlement. This results, among others, from the reduction of the lump-sum tax rate for certain services and changes in the calculation of health insurance contributions. For whom? The lump sum on recorded revenue may be used by the majority of persons conducting business activity as sole entrepreneurs or in the form of a civil-law partnership or general partnership of natural persons, whose revenue in the previous tax year did not exceed the limit of EUR 2 million (which rule does not apply to persons commencing their business activity). It is worth remembering that the choice of a lump sum regime for 2022 will not be possible if the entrepreneur provides services to a current or former employer, and the nature of those services correspond to the activities performed under an employment contract in 2021 or 2022. https://www.mddp.pl/lump-sum-tax-on-recorded-revenue/ |
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1 hr confidence:
flat-rate taxation based on documented revenues Explanation: In this form of taxation, you pay a flat rate of your documented revenue - not your profit. This is simpler in terms of accounting and is advantageous in certain industries. The rates depend on the type of business. |
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