🔹 Introduction

 When starting a business in Poland, an entrepreneur must choose one of the available forms of income or revenue taxation. This choice affects:

• the amount of taxes,
• the method of their settlement,
• the possibility of including costs, allowances, and also the way of keeping records.

🔸 1. What forms of taxation for individual entrepreneurs are available and what do we pay tax on?

• Tax scale (general rules) - Income - 12% up to PLN 120,000, then 32%
• Flat tax - Income - 19% regardless of income
• Registered lump-sum tax - Revenue - 2%–17% depending on the industry

 
📌 Income = revenue – costs of obtaining revenue
 

🔸 2. Tax scale (general rules)

✅ For whom?

• For individuals with lower income,
• For those who benefit from the tax-free allowance (PLN 30,000) and middle-class relief,
• For entrepreneurs who combine business with employment,
• For families – it is possible to settle jointly with a spouse or as a single parent.

✅ Rates for 2025:

• 12% up to an income of PLN 120,000,
• 32% on the excess above PLN 120,000.

📌 Possibility of applying family, rehabilitation, internet relief, etc.
 

🔸 3. Flat tax (19%)

✅ For whom?

• For those who achieve high income,
• For those who do not want to move into the second bracket of 32%,
• For individuals who do not use allowances and family settlements.

❌ Missing:

• tax-free allowance,
• joint settlement with a spouse,
• PIT reliefs (except for B+R, IP Box, thermal modernization, etc.).

📌 Typically profitable from about PLN 200,000 annual income and higher.
 

🔸 4. Registered lump-sum tax on revenue

✅ For whom?

• For individuals with low costs of running a business,
• For freelancers, IT services, creators, medical professionals, trade, gastronomy, rental, etc.
• Revenue must not exceed 2 million euros per year (limit for lump-sum taxation).

✅ Sample lump-sum rates for 2025:

Software services, IT, B2B - 12%
Rental of apartments (individuals) - 8.5% up to 100,000, then 12%
Educational, training services - 8.5% or 15%
Sale of goods (trade) - 3%
Free professions (doctors, lawyers) - 17%
 
📌 Costs cannot be settled, but health insurance can be deducted from the lump sum (partially).
 

🔸 5. Health insurance contribution and form of taxation

Since 2022, the amount of the health insurance contribution depends on the chosen form of taxation:

• Tax scale | 9% of income - ❌ Cannot be deducted
• Flat - 4.9% of income - ✅ Yes (up to the limit)
• Lump-sum - Fixed thresholds depending on annual revenue - ✅ Yes (partially)

 📌 Under the tax scale and flat tax, there is a minimum amount for the contribution; if your earnings make the percentage contribution lower than the minimum amount, you pay the minimum amount.

 

🔸 6. When and how to choose or change the form of taxation?

• When setting up an individual entrepreneur - choice in CEIDG (online or at the office),
• Changing the form of taxation:
   → by the 20th day of the month following the month of obtaining the first revenue of the year (usually by February 20 of that year).

📌 Changes are made through CEIDG or in writing to the tax office (in the form of a declaration).
📌 If you do not decide on the form of taxation within 7 days from the start date of business activities, the tax scale will be automatically chosen.
 

✏️ Summary – what is beneficial?

• You have low income, use allowances and settlements with your spouse - Tax scale
• You have high income and low costs - Flat tax
• You provide services and have no costs, work independently - Lump-sum

📚 Legal basis 

• PIT Act
• Act on Lump-Sum Income Tax
• Act on the Social Insurance System
• Regulations of the Ministry of Finance and Social Insurance Institution (current rates and forms)