Lower tax limits in 2026

Tax limits in Polish law are often specified in euros. The use of the common currency as a reference point is intended to ensure the harmonisation of national regulations with European Union legislation and the uniform treatment of businesses throughout the EU. Referring to the euro also makes it possible to decouple the value of the limits from fluctuations in the zloty exchange rate, which promotes greater stability of regulations from an international perspective. In addition, setting limits in euros facilitates the comparison of data on the size of businesses (e.g. small taxpayer status) between member states.

Calculating limits

In principle, tax and accounting limits in Polish regulations are specified in euros. In order to correctly verify whether a given taxpayer falls within a specific limit, it is necessary to convert its value into Polish zlotys. For most limits for a given tax year, the conversion is made according to the average euro exchange rate announced by the National Bank of Poland on the first working day of October of the previous year.

For 2026, the exchange rate of 1 October 2025, which was 4.2586 PLN/euro, applies. For comparison, in 2024 the exchange rate was 4.2846, and in 2023 – 4.6091.

The exchange rate used to calculate the limits for 2025 was significantly lower than in the previous year, which translated into a significant reduction in tax and accounting thresholds. As a result, fewer taxpayers were able to take advantage of the available simplifications. In the case of the limits for 2026, a further decline in the exchange rate was recorded, although less significant than in the previous year. However, the trend of lowering the limits continues, which means that in the coming year, the number of taxpayers eligible for simplified settlement rules may remain limited.

PIT and CIT small taxpayer limit

The status of a small taxpayer, in accordance with the provisions of the Personal Income Tax Act and the Corporate Income Tax Act, allows for preferential taxation rules. For both PIT and CIT purposes, a limit of EUR 2,000,000 in sales revenue (including VAT) for the previous tax year is applied. In 2025, this limit will be PLN 8,517,000 (rounded to PLN 1,000). For comparison, the limit applicable in 2025 is PLN 8,569,000.

An important preference from the point of view of a corporate income tax payer is the possibility of applying a reduced 9% CIT rate. However, in this case, it is also necessary to verify the second limit, which involves checking current revenues, as the 9% rate can be applied if the current net revenues (excluding VAT) in the tax year do not exceed EUR 2,000,000, converted at the exchange rate on the first working day of the tax year (in 2026, this will be 2 January). Once this limit is exceeded, the taxpayer must pay corporation tax at the basic rate of 19% starting from the following month. Therefore, a situation may arise where the limit set on the basis of the year preceding the tax year (small taxpayer) will allow for the application of a reduced rate, but due to exceeding the current revenue limit, the application of the 9% rate will not be possible (or continued).

The small taxpayer limit also determines the tax rate for the flat-rate tax on corporate income (Estonian CIT). Therefore, in order to benefit from the 10% rate in Estonian CIT, the limit of EUR 2,000,000 in sales revenue (including VAT) for the previous tax year must not be exceeded.

PIT and CIT taxpayers who have small taxpayer status can benefit from another preference, which is one-off depreciation of fixed assets up to EUR 50,000 per year. This entitlement applies only to fixed assets classified in groups 3-6 and 8. For 2026, the limit is PLN 213,000 (for 2025, PLN 214,000).

It is worth mentioning that taxpayers who started their business activity 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 to achieve net income from business activity for the year preceding the tax year not exceeding EUR 2,000,000. Therefore, the limit for 2026 will be PLN 8,517,200 (in the case of lump sum taxation, rounding to PLN 1,000 does not apply). The limit applicable in 2025 is PLN 8,569,200.

In addition, entities settling their accounts using a lump sum have the option of paying tax on a quarterly basis. However, not every taxpayer on a lump sum can take advantage of this form of settlement, as there is also a limit here – EUR 200,000. This limit also applies to net income for the year preceding the tax year and for 2026, converted into PLN, it is PLN 851,720. In 2025, the amount is PLN 856,920.

Small VAT taxpayer limit

According to the provisions of the Goods and Services Tax Act, a small taxpayer is an entrepreneur whose sales value, including tax, did not exceed the equivalent of EUR 2,000,000 in the previous tax year. This means that in 2026, for VAT purposes, a small taxpayer is an entity whose sales, including tax, do not exceed PLN 8,517,000 (rounded to PLN 1,000). The limit for 2025 is PLN 8,569,000.

For entrepreneurs who run, among other things, a brokerage or investment fund management company, a different limit is set – such an entrepreneur is a small taxpayer if their commission or other forms of remuneration (including tax) did not exceed the equivalent of EUR 45,000 in the previous tax year, calculated as of the first working day of October of the previous year. For such entrepreneurs, the limit in 2025 and 2026 is PLN 193,000 and PLN 192,000, respectively (rounded to PLN 1,000).

The privileges that small taxpayers can take advantage of in the context of VAT include the option of cash-based VAT settlements and quarterly VAT settlements. It is important to note that when choosing the cash-based method, quarterly settlements are automatically required. An exception is when a taxpayer is just registering for VAT – for the first 12 months from the date of VAT registration, they must make monthly VAT settlements. However, choosing quarterly settlements does not entail the use of the cash method.

A separate limit for quarterly settlements is set for companies taxed under the Estonian CIT. Here, the limit is EUR 4,000,000 in sales value (including tax) for the previous tax year, converted at the exchange rate of 1 October (i.e. in 2026, PLN 17,034,000 in sales value for 2025 – rounded to PLN 1,000). In 2025, the applicable limit for the above-mentioned companies is PLN 17,138,000.

Accounting ledgers

The Accounting Act enumerates entities that are required to keep full accounting records after meeting the relevant conditions.

Natural persons, civil law partnerships of natural persons, civil law partnerships of natural persons and enterprises in succession, general partnerships of natural persons, professional partnerships and enterprises in inheritance, 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 of EUR 2,500,000 in Polish currency.

In this case, the exchange rate of 1 October is also used for conversion. For 2026, this limit will be PLN 10,646,500, compared to PLN 10,711,500 in 2025.

Tax limits in 2025 and 2026

Limit (PLN)	2025 Y	2026 Y
Small taxpayer status for PIT and CIT	8 569 000	8 517 000
One-off depreciation of fixed assets	214 000	213 000
Lump sum on registered income	8 569 200	8 517 200
Quarterly lump sum payment	856 920	851 720
Small taxable person for VAT	8 569 000	8 517 000
Accounting ledgers	10 711 500	10 646 500

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