In 2024 Fewer businesses will benefit from tax simplifications due to a fall in the average euro rate. This is due to the fact that for the calculation of tax and accounting limits per year 2024, take account of the euro rate announced by the NBP first working day of October 2023, which on date 2 October the current year was 4.6091 PLN for euro. This means that it is lower than the one in force last year (4.8272 PLN).
Small taxpayer
From 1 July 2023 the revenue limit to qualify for the status of small VAT payer increased from 1,200,000 EUR to 2,000,000 EUR. This limit is converted to first the working day of October of the previous year (also for PIT and CIT taxpayers). This means that the income limit that will determine the status of a small taxpayer in 2024, is 9,218,000 PLN (after rounding). For comparison, in second half of this year, this limit was 9,654,000 PLN, a first mid-year 5,793,000 PLN.
Having the status of a small taxpayer is also one of the conditions necessary to be met to benefit from 9% CIT rates. In the year 2024 the possibility of applying a reduced tax rate will be given to taxpayers whose revenues per year 2023 will not exceed 9,218,000 PLN gross, corresponding 2 one million euro at the rate with 1 October 2023 and whose current revenue in 2024 will not exceed 2,000,000 EUR net, i.e. no VAT due but at the rate with 2 January 2024.
Quarterly VAT clearance
As already indicated above, as a result of a change in the revenue limit allowing the qualification of a small VAT taxable person 1.2 to 2,000,000 EUR, year 2024 This status will be granted to entities whose total sales per year 2023 does not exceed the amount 9,218,000 PLN (rounded).
However, the increase in the limit does not apply to brokerage taxable persons, trust fund managers and agents, since for them VAT legislation provides for a different level of limit of 45,000 EUR. This means that in the year 2024 taxable persons carrying out these activities will be classified as a small entrepreneur if the sum of the commission or other forms of remuneration (including the amount of VAT) does not exceed 207,000 PLN. In 2023 This limit was 217,000 PLN.
The same exchange rate criterion shall also apply to the calculation of the value of sales in companies that apply a flat rate on company income (the so-called Estonian CIT) if they intend to settle VAT quarterly.
It is worth noting that this possibility applies only to taxable persons in whom the value of the sale (including the amount of VAT) has not exceeded the equivalent 4,000,000 EUR in the previous tax year.
In other words, in a year 2024 quarterly VAT settlements will also be available to Estonian CIT taxable persons whose sales in the year 2023 not exceeded 18,436,000 PLN (after rounding). Currently this limit is 19,309,000 PLN.
De minimis depreciation
Taxable persons starting business in a given tax year and entities having a small taxpayer status may make one depreciation deductions from the initial value of fixed assets included in the group 3-8 Classification of fixed assets, excluding passenger cars up to a value not exceeding the amount in the tax year 50,000 EUR the total value of these depreciation write-offs.
Conversion of the amount of the limit to gold shall be made on the basis of the average euro rate announced by the NBP to first the working day of October of the year preceding the tax year in question. For 2024 that threshold 50,000 EUR will be higher 230,000 PLN (currently 241,000 PLN).
keeping accounts
Same limit 2,000,000 EUR determines the need to keep accounts for natural persons, members of civil, public and partnerships, as well as companies in decline.
In this case, the amount of the limit is not rounded up and thus in the year 2024 the need to keep accounts does not apply to taxable persons whose income generated in 2023 have not exceeded the quota 9,218,200 PLN. This limit will be lower by 436,200 PLN compared to the limit in force in the year 2023 (was 9,654,400 PLN).
Flat rate on recorded revenue
Limit 2,000,000 EUR also applies to the lump sum on recorded revenue. In the year 2024 This method of settlement will be available to individuals, civil companies and public natural persons and enterprises in decline which in 2023 revenue not exceeding amounts 9,218,200 PLN (in this case, no rounding shall be carried out either). Currently, this limit is 9,654,400 PLN.
The limit for lump sums wishing to benefit from quarterly settlement is 200,000 EUR. That means in a year 2024, Every quarter, taxpayers will be able to account under this system, whose income in the year 2023 shall not exceed the amount 921,820 PLN (the current limit is 965,440 PLN).
Important!
In line with the changes provided for in the draft law on the reduction of bureaucracy and legal barriers, prepared by the Parliamentary Commission Extraordinary for Deregulation, which in July 2023 Involved in the Sejm (elementary printing) 3502, the revenue limit authorising entrepreneurs to use the registered lump sum is to increase from 2 to 3,000,000 EUR In 2024 If the project is adopted, the limit for the lump sum shall be: 3,000,000 EUR x 4.6091 PLN = 13,827,300 PLN.