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Polish tax law is undoubtedly complex. Businesses must navigate many forms of taxation and possible interpretations. One option is the lump-sum tax on recorded revenue, with different rates for different activities: some pay 15%, others 12% or 5.5%. Which services can be taxed at the 8.5% rate? Find out more.
How does the 8.5% lump-sum tax work?
The lump-sum tax on recorded revenue is a simplified form of taxation. Tax is paid on revenue, rather than profit as under alternatives such as general rules. A business cannot deduct recorded business expenses. The 8.5% rate may thus suit people with low operating costs.
Another important aspect is the obligation to keep revenue records. Businesses must document them carefully to calculate tax due. This is less challenging than full accounting but still requires accuracy and regularity.
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Which services can be taxed at 8.5%?
Several types of services may qualify. The right applies to businesses in these areas:
- Rental, subletting, leasing or similar agreements concerning property, machinery or vehicles, provided such services are not directly related to the nature of business activity.
- Accommodation services, including traditional hotels and people renting guest rooms or apartments.
- Food services, primarily bars, clubs and restaurants selling drinks containing at least 1.5% alcohol.
- Educational services, including training and vocational courses.
- Fire protection and maintenance of firefighting equipment.
- IT services, including consulting, software testing, technical support, analysis and creating digital solutions.
The 8.5% lump sum: tax progression
The 8.5% rate can either have a revenue threshold or have no such condition, depending on the activity. For rental, subletting or leasing, it becomes progressive. The first PLN 100,000 of revenue is taxed at 8.5%; revenue above that is taxed at 12.5%.
An example illustrates the rule.
Ms Marzena rents property and earns PLN 100,000, so pays PLN 8,500 of tax. If rental revenue were PLN 200,000, the first PLN 100,000 would be taxed at 8.5% and the second half at 12.5%. Total tax would therefore be PLN 21,000.
A special rule concerns spouses jointly renting property. They can settle private rental together at 8.5% on PLN 200,000, provided they have no separate-property regime and the rental property is jointly owned. To use the preference for a property rented before marriage, a spouse would need to transfer it into joint property.
8.5% lump-sum tax in online marketing
Online marketing uses diverse forms of taxation. Many specialists choose flat tax or general rules, allowing business costs to be deducted from revenue.
More specialists are nevertheless turning to lump-sum tax for its simplicity and potential savings. Online marketing services are usually subject to the 15% rate, although some use 12% or even 8.5%.
Take website search engine optimisation. The work is often highly technical and involves analysis, website optimisation and professional advice. Some SEO specialists therefore try to classify their work as IT, potentially obtaining the more favourable 8.5% rate.
Do not make this choice alone. Eligibility requires a detailed analysis of services. Before a final decision, ask tax advisers for an opinion and individual interpretation. If they determine that your services qualify for 8.5%, you can move to that taxation method.
However, this is not standard for online marketing. A tax inspection remains possible even after a favourable professional assessment. An inspection does not necessarily mean a penalty: provide the required documents and arguments to show your interpretation complies with the law.
Which business forms can use the 8.5% lump sum?
The 8.5% recorded-revenue lump sum is available to various legal forms. Sole proprietorships, Poland's simplest and most popular business form, can use it. It may be attractive for freelancers, consultants and self-employed specialists.
Civil and general partnerships also qualify, subject to a condition: each partner must individually settle their share of the partnership's revenue.
An enterprise in succession can also use it. This legal form continues a business after its owner's death. The lump sum may simplify management for heirs without business experience.
General limits on the 8.5% lump sum
Regardless of the rate, recorded-revenue lump-sum tax has limits. The main one is revenue in the preceding tax year: it must not exceed the equivalent of EUR 2 million, or PLN 8,569,200 in 2025.
This high threshold allows microbusinesses as well as small and medium firms with significant turnover to use the regime. It applies to the previous, not current, tax year. Exceeding it during the year does not prevent continued use until year-end; changing taxation becomes necessary only the next year. Fast-growing firms should therefore plan tax strategy in advance.
For whom is 8.5% worthwhile?
The 8.5% rate appeals to many businesses, especially those with low operating costs. Simplicity, predictable tax burdens and a relatively low rate also favour it.
The best settlement method is the one that lets a business retain the greatest share of profit in its circumstances. No solution is universally best: the optimal terms for one person may be worse for another.
If you found this article interesting, explore our tax advisory services and read how we can help you:
Summary
Choosing a tax form should always follow careful analysis of the business, cost structure and planned revenue. Consider consulting a tax adviser to make the right choice. When in doubt, requesting an individual tax interpretation can also help.
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