At the beginning of the year 2017 the number of persons entitled to account in the form of lump sums increased from recorded revenue. This is the result of changes to the flat-rate income tax Act on certain revenues generated by individuals.
The lump sum on recorded revenue is a simplified form of taxation which may be applied by entrepreneurs operating individually or in the form of a company. The specificity is that the tax rate relates to revenue not reduced by the cost of obtaining income. For this reason, the calculation of the income tax due is much easier than for general accounting. However, not all are entitled to choose such a form. It cannot be used by taxpayers who conduct economic activities in the field of:
- • trade activities in parts and accessories for motor vehicles
- • foreign exchange acquisition and sale activities (cantor activities)
- • mortgage lending activities (lombard activities)
- • most of the so-called free professions
Another restriction concerns revenue volumes. Overshooting the annual revenue limit expressed in Euro excludes the possibility of choosing a lump sum from the revenues recorded in the following year. To the end 2016 the maximum amount was 150,000 EUR, beginning 2017 limit increased to 250,000 EUR. This means increasing the number of entrepreneurs entitled to take advantage of this option.
The choice of this form of taxation requires a written statement to the head of the tax office. The notification shall be made by the day preceding the commencement date.
Author:
Paweł Kula
From 2016 related to Russell Bedford Poland. Graduate of law studies, Tax Advisor No. 12969. Specializes in excise duties and transfer pricing documentation. Author of tax-related articles published on industry websites.