Peculiarities of taxation in Poland for individual entrepreneurs

Entrepreneurs in Poland have the opportunity to choose one of three taxation systems:

• «na zasadach ogolnych» (general taxation system),
• «liniowy»,
• «ryczałt».

1. «Na zasadach ogolnych» (general taxation system).

This taxation system applies if you did not choose any of the three types of taxation during registration.

Peculiarities:

• income is taxed (that is, expenses are taken into account),
• tax rate 12% or 32%,
• there is a tax-free quota (at the time of preparation of information this is PLN 30,000),
• a joint settlement with the spouse is possible at the end of the year,

The contribution rate to ZUS («składka zdrowotna») is 9% of income, but there is a minimum amount.

2. «Liniowy»

Peculiarities:

• income is taxed (that is, expenses are taken into account),
• tax rate 19%,
• The contribution rate to ZUS («składka zdrowotna») is 4.9% of income, but a minimum amount also applies.

3. «Ryczałt».

It is not possible to apply this taxation system for all types of activities (for example, when selling auto parts).

Peculiarities:

• revenue is taxed (costs are not taken into account),
• tax rates depend on the type of activity and range from 2 to 17%,
• The amount of contributions to ZUS («składka zdrowotna») is set in fixed amounts and depends on revenue.

The entrepreneur himself chooses the taxation system, which can be changed once a year.

If you are not sure which system is best suited for your type of activity and will be the most optimal, contact us, we will calculate everything for you.