Lump sum on registered revenues

What is lump-sum taxation on registered revenues?

This is one of the simplified forms of taxation with income tax. In the case of a lump sum on recorded income, the tax base is the income itself without costs. This method consists in keeping a record of revenues, which includes each sale related to the conducted activity.

Who can benefit from this form of taxation?

This form of taxation may be used by natural persons, an inherited enterprise, civil partnerships of natural persons and general partnerships of natural persons. An additional condition for using the lump sum is obtaining in the year preceding the tax year:

• revenues from activities conducted only independently, in the amount not exceeding PLN 1 093 350 (the equivalent of EUR 250,000),
• revenues only from activities conducted in the form of a company, in the amount of the partners’ revenues not exceeding PLN 1 093 350 (the equivalent of EUR 250,000),
• revenues from activities conducted independently or in the form of a company, taxed only in the form of a tax card or for part of the year in the form of a tax card and for part of the year on general terms, in a total amount not greater than PLN 1 093 350 (the equivalent of EUR 250,000)

The right to quarterly lump sum settlement is also available to taxpayers whose revenues from independent activities or the company’s revenues – in the year preceding the tax year – did not exceed the amount PLN 109 335.00 ( the equivalent of 25 thousand euro).

When can you switch to a flat rate?

You can switch to a lump sum if you are just starting a business in a given tax year, regardless of the amount of revenues by the end of this year (even if this year it exceeds 250,000 euro turnover).

If the activity is already carried out, the entrepreneur will be able to pay the lump sum if his revenues in the previous year did not exceed the equivalent of EUR 250,000 (according to the euro exchange rate announced by the National Bank of Poland on the first working day of October of the year preceding the tax year).

Lump sum application

The declaration on the choice of the lump sum should be submitted no later than on the 20th day of the month following the month in which the taxpayer receives the first income. If the first income took place in December, the lump sum declaration must be submitted by the end of the tax year. You only need to submit such a declaration once. There is no need to renew it in subsequent years of operation.

The declaration may be submitted directly to the tax office or via an application for entry in CEIDG.