New tax limits in Poland in 2025

Starting from 1 January 2025, new tax limits will apply. With the lower EUR exchange rate compared to the last year, the tax limits converted to PLN will be decreased. As a result, less taxpayers will be able to use the preferential solutions.

The provisions of tax regulations (i.e., on CIT, PIT, flat-rate income tax, VAT) and the Accounting Act specify the limits that determine the possible use of various simplifications and preferences or impose specific obligations. The said limits are expressed in EUR and they must be converted to PLN according to the average EUR exchange rate announced by the National Bank of Poland on the first working day in October of the previous fiscal/financial year.

The most important regulations that refer to the said conversion rate:

• De minimis amortization
• Status of small taxpayer
• Right to pay lump-sum on registered revenue
• Obligation to keep accounting ledgers

When determining the limits applicable in 2025, it is necessary to take into consideration the average exchange rate of the National Bank of Poland as of 1 October 2024 which amounted PLN 4.2846 (table no. 191/A/NBP/2024). For comparison, the average exchange rate of the National Bank of Poland as of 2 October 2023 amounted PLN 4.6091 (table no. 190/A/NBP/2023).

Comparison of limits applicable in 2024 and 2025

Limit of de minimis amortization in 2025

Business owners with the status of small taxpayer as well as those who started their business activity in the year in question can use utilize one-off amortization as part of de minimis aid. Depreciation write-offs can be carried out on an individual basis up to the limit of EUR 50,000 according to the average exchange rate of the National Bank of Poland on the first working day of October in the year preceding the fiscal year in question, rounded to PLN 1,000. The said limit only refers to tangible assets classified as group 3-8 of the Classification of Tangible Assets, except for passenger cars (assets with a value not exceeding PLN 10,000.00 are not included towards the limit).

Status of small CIT, PIT and VAT payer in 2025

The status of small taxpayer brings many advantages and facilitations:

• Possibility of paying quarterly tax advance payments (CIT, PIT).
• Use of one-off amortization (de minimis aid).
• Lowered CIT rate (additional conditions).
• Quarterly VAT settlements and cash accounting (VAT).

If the entity’s revenue on sales along with the payable VAT do not exceed the equivalent of EUR 2,000,000 in the previous fiscal year, calculated based on the exchange rate on the first working day of October, the entity is considered as a small taxpayer. In 2025, this will apply to business owners for whom the gross sales value in 2024 amounted less than PLN 8,569,000.00.

CIT 9% preferential rate for small taxpayers in 2025

CIT payers with the status of small taxpayer may apply the preferential CIT rate of 9% if their revenue in 2025 does not exceed the equivalent of EUR 2,000,000 calculated based on the exchange rate of the National Bank of Poland as of 1 January 2025.

Flat-rate personal income tax

The lump-sum on registered revenue in 2025 can be utilized by taxpayers whose revenue in 2024 does not exceed EUR 2,000,000 calculated based on the exchange rate as of 1 October 2024. Quarterly lump-sum settlements in 2025 will be available for those who generated a revenue of up to PLN 856,920.00 in 2024.

Tax limits for comprehensive accounting

The revenue and expense ledger can be kept by a taxpayer that meets the following conditions:

• They settle the tax under general rules according to the tax scale or on a linear basis.
• They conduct business activity individually or in form of a company (civil law partnership, general partnership, professional partnership).
• Their net revenue on sales of goods, products and financial operations did not exceed EUR 2,000,000 in the previous fiscal year, calculated based on the exchange rate after 1 October.

Business owners whose revenue in 2024 exceeds PLN 8,569,200.00 will be entitled to simplified accounting in 2025. When the limit is exceeded, comprehensive accounting will be required. There is a plan to increase the limit to EUR 2,500,000, which may come into force on 1 January 2025, increasing the limit to PLN 10,711,500.

Sources:

• Acts, exchange rates of the National Bank of Poland
• Gazeta Prawna – Tax limits for 2025
• * This change is still the subject of legislative works in the Polish Sejm

Autor: Anna Piotrowska Biuro MDDP Outsourcing w Warszawie