As a rule, tax and accounting limits are set in euro. In order to correctly apply them for the purposes of verifying whether a given taxpayer is within a particular limit, it is necessary to convert the euro value of a given limit into a value expressed in PLN. The above, in the case of most limits for a tax year, is determined on the basis of the average euro exchange rate announced by the National Bank of Poland on the first working day of October of the previous tax year. Thus, for the determination of the limit for 2025, it will be the exchange rate as at 1 October 2024, which was 4.2846. For 2023 and 2022, the exchange rate on the first working day of October was 4.6091 and 4.8272, respectively.
The rate set for calculating the limit for 2025 is lower compared to last year, clearly indicating a reduction in tax and accounting limits, while causing fewer taxpayers to apply simplifications to their activities.
PIT and CIT small taxpayer limit
The status of a small taxpayer, according to the provisions of the Personal Income Tax Act and the Corporate Income Tax Act, allows one to benefit from preferential taxation rules. For both PIT and CIT purposes, a limit of €2,000,000 of sales revenue (including VAT) for the previous tax year applies. In 2025, this limit will be PLN 8,569,000 (rounded up to PLN 1,000). For comparison, the limit applicable in 2024 is PLN 9,218,000.
An important preference from the point of view of a corporate income taxpayer is the possibility to apply a reduced CIT rate of 9 per cent. However, in this case, additionally, the second limit consisting in the control of current revenues must be verified at the same time – the 9 per cent rate may be used if the current net revenues (excluding VAT), in the tax year, do not exceed the amount of EUR 2,000,000 translated at the exchange rate as at the first working day of the tax year (in 2025, this will be 2 January). Once this limit is exceeded, the taxpayer must, starting from the following month, pay corporate income tax at the basic rate of 19%. Therefore, a situation may arise where the limit set on the basis of the year preceding the tax year (small taxpayer) will allow the application of the reduced rate, however, as a result of exceeding the current income limit, the application of the 9% rate will not be possible (or will continue).
The small taxpayer limit also determines the tax rate for lump-sum taxation on company income (Estonian CIT). Thus, in order to benefit from the 10 per cent rate in Estonian CIT, the limit of €2,000,000 of sales revenue (including VAT) for the previous tax year must not be exceeded.
PIT and CIT taxpayers who have the status of a small taxpayer can benefit from another preference, which is the one-off depreciation of fixed assets up to the amount of EUR 50,000 per year. This entitlement applies only to those fixed assets that are indicated in groups 3-6 and 8 in the classification of fixed assets. For 2025, the limit is PLN 214,000 (for 2024 it is PLN 230,000).
Incidentally, it is worth mentioning that taxpayers who have started a business in a given year can also benefit from one-off depreciation or reduced rates of 9% and 10% .
Lump sum on registered income
The condition for benefiting from lump-sum taxation is that the net income from business activities for the year preceding the tax year does not exceed €2,000,000. Therefore, the limit for 2025 will be PLN 8,569,200 (in the case of the lump sum, rounding to PLN 1,000 does not apply). The limit applicable in 2024 is PLN 9,218,200 .
In addition, flat-rate taxpayers have the option of paying tax quarterly. However, not every flat-rate taxpayer can use this form of settlement, as a limit of EUR 200,000 applies here as well. This limit also relates to the net income for the year preceding the tax year and for 2025, converted into PLN, is PLN 856,920. In 2024, the amount of PLN 921,820 applies.
Small VAT taxpayer limit
Pursuant to the provisions of the Value Added Tax Act, a small taxpayer is an entrepreneur in which the value of sales, including the amount of tax, did not exceed the equivalent of EUR 2,000,000 in the previous tax year. This means that in 2025, for VAT purposes, a small taxpayer is an entity for which the aforementioned limit will not exceed PLN 8,569,000 (rounded up to PLN 1,000). The limit for 2024 is PLN 9 218 000.
For entrepreneurs who run, inter alia, a brokerage firm or an investment fund management company, a different limit is set – such an entrepreneur is a small taxpayer if the amount of his or her commission or other forms of remuneration (including the amount of tax) did not exceed in the previous tax year the equivalent of EUR 45,000, calculated on the first working day of October of the previous year. For such entrepreneurs, the limit is, in 2024 and 2025, PLN 207,000 and PLN 193,000 respectively (rounded up to PLN 1,000).
The privileges that small taxpayers can enjoy in the context of VAT are the possibility to settle VAT on a cash basis and to settle VAT quarterly. It is important to note that when opting for the cash accounting method, quarterly settlements automatically follow. The exception is the situation when a taxpayer just registers for VAT – for the first 12 months from the date of registration for VAT, he must settle VAT on a monthly basis. On the other hand, the choice of quarterly settlements does not imply the necessity to use the cash accounting method.
A separate limit for quarterly settlements is set for companies subject to Estonian CIT. Here, the limit is EUR 4,000,000 of sales value (including tax) for the previous tax year, converted at the exchange rate of 1 October (i.e. in 2025, PLN 17,138,000 of sales value for 2024 – rounded up to PLN 1,000). In 2024, the applicable limit for the above companies is PLN 18,436,000.
Accounting ledgers
The Accounting Act enumerates enumeratively the entities obliged to keep full accounts once the relevant conditions are met. Natural persons, civil partnerships of natural persons, civil partnerships of natural persons and inherited enterprises, general partnerships of natural persons, partnerships and inherited enterprises are obliged to keep full books of account if the net revenues from the sale of goods, products and financial operations of these entities for the previous financial year amounted to at least the equivalent in Polish currency of EUR 2,000,000. In this case, the exchange rate of 1 October is also used for conversion. The limit indicated above is the limit currently in force. From 2025, according to the draft amendment to the Accounting Act, this limit is to increase by 25%, i.e. to €2,500,000.
Thus, in the case of bookkeeping, there are two possible solutions to be considered for the time being (one of them will be adopted in 2025, depending on whether the amendment to the legislation will enter into force on the planned date):
– the bill will enter into force and the limit of EUR 2,500,000 (PLN 10,711,500) will apply,
– the bill will not enter into force and the limit of EUR 2,000,000 (PLN 8,569,200) will apply.
Tax limits in 2024 and 2025
|
Limit (PLN) |
2024 Y |
2025 Y |
|
Small taxpayer status for PIT and CIT |
9 218 000 |
8 569 200 |
|
One-off depreciation of fixed assets |
230 000 |
214 000 |
|
Lump sum on registered income |
9 218 000 |
8 569 200 |
|
Quarterly lump sum payment |
921 820 |
856 920 |
|
Small taxable person for VAT |
9 218 000 |
8 569 200 |
|
Accounting ledgers |
9 218 000 |
8 569 200 |
