• Introduction of an optional cash accounting method for sole proprietors, allowing income tax to be paid upon receipt of payment.
• Eligible taxpayers include those with annual revenue below PLN 1 million in the preceding year, not maintaining full bookkeeping, and using tax scales, flat tax, or lump-sum taxation.

• Exclusion of fixed asset sale proceeds/costs from the contribution base (voluntary inclusion permitted if beneficial).
• Reduction of the minimum contribution base to 75% of the minimum wage (down from 100%), lowering the monthly minimum contribution to PLN 314.96 (a 25% decrease).
• Applies to entrepreneurs taxed under general rules, flat tax, or tax card regimes

More information about social insurance system in Poland.

• New legal definitions for terms such as building, structure, construction object, construction works, and permanent connection to the ground under the Local Taxes and Fees Act, replacing references to the Construction Law.
• Potential reclassification of assets (e.g., wind farms, industrial furnaces) may affect tax rates.
• Updated declarations (form IN-1) must be filed by 14 January 2025 for sole proprietors. Legal entities must submit DN-1 declarations by 31 January 2025, with an optional extension to 31 March 2025 if notified by 31 January.

More about the taxation of immovable property in Poland.

• Mandatory electronic submission of accounting records in standardized SAF-T formats (JPK_KR_PD and JPK_ST) for CIT taxpayers with annual revenue exceeding EUR 50 million, effective for fiscal years starting after 31 December 2024.
• Phased implementation – 2026: Taxpayers required to submit JPK_VAT; 2027: All remaining CIT taxpayers.

• 10% minimum corporate income tax applies to companies reporting operational losses or profitability below 2%.
• Tax base excludes certain costs (e.g., depreciation, leasing, energy expenses, and 20% of wage costs).

Overview of corporate income tax in Poland.

• As of 1 January 2025, the global minimum tax, also known as the compensatory tax (implementation of the Global Minimum Tax (GLOBE) under the so-called Pillar II implemented based on Council Directive (EU) 2022/2523), is effective in Poland.
• The tax covers component units of international and domestic groups operating in Poland, which have reported revenues of at least EUR 750 million in the consolidated financial statements of the ultimate parent company in at least two of the four tax years immediately preceding the tax year under review.
• Regulations stipulate a minimum effective tax rate of 15%.

• Small businesses operating cross-border in the EU can claim VAT exemption in member states without local registration, provided:
  • Annual EU-wide turnover does not exceed EUR 100,000.
  • Country-specific thresholds (e.g., Poland’s PLN 200,000) are not exceeded.
• Polish businesses must submit quarterly turnover reports to the tax office.

• The revenue threshold mandating full accounting rises from EUR 2 million to EUR 2.5 million for sole proprietors, civil partnerships, and professional partnerships.
• Effective for fiscal years starting after 31 December 2024.