Thresholds update 2021
Thresholds for income tax purposes
The limit for 2021 for tax on registered income without deductible costs
Starting from 2021, the right to apply tax on registered income without deductible costs will have the taxpayers who in 2020:
- obtained revenues from sole proprietorship in the amount not exceeding PLN
9,030,600.00 (EUR 2,000,000 × PLN 4.5153/EUR), or
- obtained income exclusively from activities conducted as a civil law partnership
of natural persons or a general partnership of natural persons, provided that the total income of the partners of the partnership from these activities did not exceed PLN 9,030,600.00 (EUR 2,000,000 × PLN 4.5153/EUR).
The right to apply tax on registered income without deductible costs on a quarterly basis will be granted in 2021 to taxpayers whose revenues from business activity conducted independently or revenues of the partnership did not exceed in 2020 the amount of PLN 903,060 (i.e. EUR 200,000 × PLN 4.5153/EUR).
Small taxpayer status
A small taxpayer is a taxpayer whose sales revenue (along with the amount of VAT due) did not exceed in the previous tax year the equivalent of EUR 2,000,000 in Polish zlotys.
In 2021, a small taxpayer shall be a taxpayer whose sales revenue (including the amount of output VAT) does not exceed in 2020 the amount of PLN 9,031,000 (EUR 2,000,000 × PLN 4.5153/EUR, when rounded to PLN 1000).
It is worth mentioning that in 2021 taxpayers holding a small taxpayer status will
be able to:
- pay advances on income tax on a quarterly basis,
- if they are CIT taxpayers, 9% CIT rate shall apply, in case their revenues do not exceed EUR 2,000,000 in a given tax year, (PLN 9,097,000, exchange rate4.5485 PLN/EUR from the first working day of a given tax year),
- recognise one-off impairments
One-off depreciation limit for small taxpayers or entities commencing to trade
Small taxpayers and taxpayers commencing their business activity (in the year of its commencement) are entitled to one-off depreciation of fixed assets classified as group 3-8 KŚT (with the exception of passenger cars). A one-off impairments are being recognised in the tax year in which such assets are entered in a fixed asset register, up to an amount not exceeding the equivalent of EUR 50,000 of the total value of such depreciation write-offs in a tax year. The
limit for one-off impairments write offs in 2021 will be PLN 226,000.
One-off depreciation for all taxpayers in relation to acquisition of new fixed assets.
All taxpayers may benefit from one-off depreciation under the new rules in relation to new fixed assets - groups 3-6 and 8 of KŚT - up to the amount not exceeding PLN 100,000 in a tax year.
One-off impairment on fixed assets acquired for the purpose of manufacture of goods related to the COVID-19 countermeasures.
In 2021, taxpayers will be able to recognise one-off impairment write-offs on the initial value of fixed assets acquired for the manufacture of goods related to COVID-19 countermeasures and entered in the records of fixed assets and intangible assets during the period from 2020 to the end of the month in which the epidemic state declared due to COVID-19 was revoked.
Income thresholds for accounting purposes
Setting the bookkeeping obligation in 2021.
Accounting books must be kept by natural persons, civil law partnerships of natural persons, general partnerships of natural persons and partnerships, if their revenues for the previous tax year (fiscal year according to the Accounting Act) reached at least the equivalent in Polish currency of EUR 2,000,000 (cf. Art. 24a par. 4 of the PIT Act and Art. 2 par. 1 pt. 2 of the Accounting Act). After conversion of the amount of EUR 2,000,000 using the applicable exchange
rate (PLN 4.5153/EUR), this limit will equal PLN 9,030,600.
Income thresholds for VAT purposes
In 2021, a small taxpayer for VAT purposes shall be a taxpayer whose sales value (together with the tax amount) did not exceed in the previous tax year the PLN equivalent of EUR 1,200,000; this limit for 2021 amounts to PLN 5,418,000 (EUR 1,200,000 × PLN 4.5153/EUR, rounded up to PLN 1,000).
Small taxpayers can benefit from certain simplifications, i.e. they may settle VAT:
1) using a so-called cash method,
Taxpayers registered by a head of tax office as active VAT taxpayers - for a period of 12 months starting from the month of registration - are not entitled to settle VAT quarterly.