Poland’s parliament approved a new “Cash PIT” regime aimed at individual entrepreneurs who operate their businesses independently and whose revenue did not surpass the PLN 1 million (EUR 250,000) threshold in the previous tax year.
The scheme permits entrepreneurs starting a business to use cash basis accounting, enabling them to pay personal income tax only upon receiving payments for the products and services rendered and deduct tax-deductible expenses after payment is made. In addition, entrepreneurs must recognise income within two years of the invoice date, regardless of payment status.
Earlier, on 13 August 2024, the Polish Council of Ministers approved a draft law permitting small-scale entrepreneurs to use the Cash PIT scheme if their income did not exceed PLN 1 million in the previous year.
The Cash PIT scheme will take effect on 1 January 2025.
