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The start of a year is undoubtedly a time of change and of adapting to a new reality… This article therefore describes changes in tax regulations that affect Polish businesses. Among the most important are cash-basis PIT, JPK_CIT, the global minimum tax and the SME procedure.
Cash-basis PIT: a voluntary option for small businesses
Cash-basis PIT, which came into force on 1 January 2025, is a voluntary method of settling income tax under which businesses may recognise costs and revenues at the time of payment rather than, as previously, when goods are delivered or a service is performed.
It is available only to business owners who do not keep full accounts and whose annual revenues do not exceed PLN 1 million. This means it applies only to smaller businesses using simplified accounting.
To use cash-basis PIT this year, a written declaration must be submitted to the competent head of the tax office by 20 February 2025 at the latest.
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JPK_CIT: a new obligation for CIT taxpayers
2025 is also the first year of the JPK_CIT rules in Poland. These rules constitute a major reform of business records and impose a new obligation on companies paying CIT.
JPK_CIT, the Standard Audit File comprising structured corporate income tax data, will in practice consist of two files:
- JPK_KR_PD concerning accounting books and income tax;
- JPK_ST_KR corresponding to the register of fixed assets and intangible assets.
From 1 January 2025, however, the obligation to keep records in a way that allows the appropriate data to be gathered and subsequently included in the JPK file applies only to capital groups and CIT taxpayers whose previous year's revenue exceeded EUR 50 million.
For the first year under the new rules (beginning after 31 December 2024), these entities will have to send the tax authorities only a limited JPK_KR_PD file by the end of March 2026.
From 2026, however, this will be the full JPK_CIT file, and the obligation will also cover another group: taxpayers required to submit JPK_VAT files.
Global minimum tax
On 1 January this year, rules implementing the EU provisions on the global minimum tax in Polish law also came into force.
This tax covers international and domestic corporations with consolidated revenues of at least EUR 750 million a year in at least two of the four years preceding the given tax year.
The global minimum tax for such entities is 15%. This means that if the effective tax rate in the period under review was below that threshold, the company must pay an additional top-up tax.
SME procedure: an EU VAT exemption for small businesses
The SME procedure began operating at the start of 2025 and enables a company to use a VAT exemption not only in its country of establishment but also in other EU member states.
To use the exemption, the total annual value of goods and services sold in the tax year must not exceed the limit:
- Established and applicable in the specific EU member state where the exemption is sought;
- Applicable throughout the EU (EUR 100,000).
To use the foreign VAT exemption, notify the competent head of the tax office, who will then grant a unique identification number.
Changes to the VAT margin scheme
On 1 January 2025, the rules for applying the VAT margin scheme also changed. From that date, taxpayers trading in works of art, collectors' items and antiques (purchasing them from their creators, successors or taxpayers not using the VAT margin scheme) may continue to use the margin scheme only if a reduced VAT rate was not applied to the import or supply.
Property tax
The new year also brought changes to property tax. The Local Taxes and Charges Act now defines terms relating to this tax, including:
- a structure,
- a building,
- a construction object,
- construction work.
In view of these changes and the possibility that owned assets will be classified differently than before, it is necessary to review property and submit new declarations. Businesses have an extended deadline until the end of March this year.
Other important changes in 2025
Other tax and contribution changes in 2025 include:
- An obligation to pay the minimum CIT tax introduced last year;
- Higher tax rates on means of transport, including trucks and buses;
- Changes in excise duty rates;
- Changes to social insurance contributions;
- Changes in health insurance contributions, including the removal of contributions on fixed assets and a reduction in the minimum contribution for businesses;
- A new PIT and CIT relief for businesses employing soldiers in the active reserve and Territorial Defence Forces;
- An increase in the minimum wage and the associated rise in employment costs;
- A change to the revenue threshold for exemption from keeping accounting books.
If you found this article interesting, explore our tax advisory services and read how we can help you:
Summary
There are thus many tax changes in 2025. All require appropriate preparation and adaptation by businesses. An experienced tax adviser can help you navigate the new rules smoothly. Do not wait: contact TaxCoach accounting firm today!
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