The Polish Council of Ministers approved a draft law allowing small-scale entrepreneurs to use cash-based settlement of revenues and costs on Tuesday, 13 August 2024.
This option, referred to as “Cash PIT” will be available to independent entrepreneurs whose income in the previous year did not exceed EUR 250,000, as well as to those who are just starting their businesses.
Cash PIT will be a voluntary form of settlement, which the taxpayer will choose by submitting a declaration to the head of the tax office. Under the new regulations, entrepreneurs will pay personal income tax only after actually receiving payment for the goods delivered or the services provided, and will deduct the costs of obtaining revenues after making payment for the goods received or the services provided.
After two years from the date of invoice issue, entrepreneurs will have to recognise income from business activities, even if they do not receive payment from contractors for the goods delivered or services provided.
The new regulations will enter into force on 1 January, 2025.
