Update: according to an accountant in Warsaw. This election is made in the annual tax filing for 2022 and the deadline is therefore the end of April 2023. Shows once again that you always should have an accountant.
The deadline for changing the form of taxation in the case of lump-sums who want to settle their taxes on general terms, ends today on Monday, 22 of August, 2022. The tax change will only apply in the current tax year.
The changes in the Polish Deal 2 of July 1, 2022 made it possible for entrepreneurs to change the form of taxation. Those who pay a flat tax rate and pay a flat tax will be able to switch to the tax scale. There was only one last day to complete the formalities.
Until when is the income tax for entrepreneurs?
The possibilities for changing taxation are limited. Lump sums who wish to switch to the tax scale can only do so until Monday, August 22. The change does not affect the previous tax half-year, but only the second and subsequent half of the tax year. The first one should then be accounted for as a flat-rate tax.
Taxation according to the tax scale has an income threshold of PLN 85,528. For income below this threshold, obtained during the year, the tax scale is 17%. the value of income, the tax should be reduced by the tax-free amount in the amount of PLN 30 thousand zloty. On the other hand, the amount of the flat-rate tax depends on the type of business and may range from 12 to 17 percent.
The change will allow you to save from several dozen to even several thousand zlotys, depending on the amount of income. “For PLN 200 thousand during the year (PLN 100 thousand in each six months) and at a flat rate of 17%, switching to the scale in the middle of the year gives a benefit of about PLN 3 thousand. the most popular rate for services – 8.5% and achieves PLN 130,000 in revenue per year (PLN 65,000 for every six months), then with a change in the middle of the year, it will gain about PLN 900 (excluding costs) “- writes the InFakt portal .pl.
How to change the form of taxation?
Changes to the form of tax settlement can be made through the Central Business Activity Register. In such a situation, the first month to be accounted for on the tax scale will be July. Therefore, all economic events from July 1 must be recorded in the tax revenue and expense ledger.