Audit of financial statements in Poland - check tax thresholds

Badanie sprawozdania finansowego - sprawdź progi

A reminder to check the thresholds that, if exceeded, trigger the obligation to audit the financial statements. And as for the financial statement audit itself – what thresholds qualify for this obligation in Poland? This article will detail the threshold amounts, as well as information in terms of which report to pull data from in order to verify potential overruns. 

Audit of financial statements-who is subject to audit?

The audit for 2022 – in light of Article 64 (1) of the Polish Accounting Act – shall apply to the annual consolidated financial statements of capital groups and the annual financial statements of – continuing operations:

  • domestic banks, branches of credit institutions, branches of foreign banks, insurance companies, reinsurance companies, main branches and branches of insurance companies, main branches and branches of reinsurance companies, and branches foreign investment companies,
  • cooperative savings and loan associations,
  • entities operating under the regulations on securities trading, regulations on the provision of crowdfunding services to business ventures, and regulations on investment funds and the management of alternative investment funds, and entities referred to in Article 2 (2b) of the Accounting Act,
  • entities operating under the regulations on the organization and operation of pension funds,
  • domestic payment institutions and electronic money institutions,
  • joint stock companies, with the exception of companies that are in organization as of the balance sheet date,
  • other entities (primarily limited liability companies, general partnerships, partnerships, limited partnerships, civil partnerships and enterprises of natural persons), which in the preceding fiscal year for which financial statements are prepared (for 2022 statements, 2021 data are included), met at least two of the following conditions:
Amounts specified in Article 64 (1) point 4
of the Accounting Act
Data for 2021 converted at the average exchange rate of the National Bank of Poland as of December 31, 2021. (1 EUR = 4.5994 PLN/euro)

average annual FTE employment was
at least 50 persons
total assets of the balance sheet at the end of the financial year were the equivalent in the Polish currency of at least EUR 2,500,000EUR 2,500,000 × 4.5994 PLN/EUR
= PLN 11,498,500*
net income from sales of goods and products and financial operations for the financial year was the equivalent in the Polish currency of at least EUR 5,000,000EUR 5.000.000 × 4.5994 PLN/EUR
= PLN 22.997.000*
*The amounts expressed in EUR were converted into Polish currency at the average exchange rate announced by the National Bank of Poland as of the balance sheet date.

The audit also applies to the financial statements of the acquiring companies and newly formed companies, prepared for the fiscal year in which the merger took place. The mandatory audit of financial statements also applies to the annual financial statements of entities prepared in accordance with IAS, the annual combined financial statements of investment funds with segregated sub-funds, and the individualannual statements of sub-funds (see Article 64 (3) and (4) of the Polish Accounting Act).

It is also mandatory for those ledger entities that have chosen the balance sheet method of determining exchange differences for tax purposes to have their financial statements audited.

Author: Agnieszka Piętak, Manager of the Accounting area, accounting office in Warsaw MDDP Outsourcing.

Legal basis:

1) aArticle 64 (1) of the Accounting Act of September 29, 1994 (Journal of Laws 2021, item 217, as amended),

2) Article 14b(2) of the Personal Income Tax Act of July 26, 1991 (Journal  of Laws 2021, item 1128, as amended),

3) Article 9b(1) point 2 of the Corporate Income Tax Act of February 15, 1992 (Journal of Laws of 2021, item 1800, as amended).

See more:

Obligation to audit financial statements by an expert auditor

Signing and submitting financial statements in XML to the National Court Register

Audit of 2021 financial statements. – selection of auditor