On Aug. 13, POL GVT adopted draft law for entrepreneurs.
POL GVT Council of Ministers has adopted a draft act enabling the choice of cash settlement of revenues and costs of obtaining revenues, the so-called cash PIT.
Adopted Law
Cash PIT will be available to entrepreneurs conducting business activity independently.
If their revenue from this activity in the previous tax year did not exceed the amount corresponding to the equivalent of EUR 250,000.
Solution will also apply to entrepreneurs who start running a business activity.
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.
The new regulations mean 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 2 years from date of invoice, entrepreneurs must recognize income from business activities, even if they do not receive payment from contractors for goods or services.
Effectiveness
Planned date of entry into force of the new regulations is Jan. 1, 2025.
Sep. 2024 Update on Law
On Sep. 27, 2024, POL GVT stated that the POL PRL adopted a law enabling the choice of cash settlement of revenues and tax-deductible costs, the so-called cash PIT.
Applies to entrepreneurs whose revenues did not exceed PLN1mn in the previous year.
The planned date of entry into force of the new regulations is Jan. 1, 2025.
Oct. 2024 Official Gazette
On Oct. 30, 2024, POL GVT issued act of Sep. 27 amending personal income tax act.
The Act shall enter into force on Jan. 1, 2025; art 1, points 3 and 9; art 2 point 2 letter a, art 4 and art 6, paragraphs 1 and 2, enter into force on Oct. 30, 2024.
