Taxation on the general rules

Taxpayers taxed according to general rules pay tax according to the tax scale. When determining the amount of tax according to the tax scale, you take into account the amount reducing the tax. Since 2022, this amount has been PLN 5,100

Check how much the tax will be for a specific basis:

The basis for calculating tax in PLN	The tax is
to PLN 120 000	12% minus PLN 5 100
over PLN 120 000	PLN 15 300 + 32% surplus over PLN 120,000

Taxation under general rules entitles you to many tax reliefs and deductions.They are, in particular:

• - child relief
• - relief for employees or taxpayers earning income from non-agricultural economic activity, i.e. relief for the middle social class
• - deduction for social security contributions
• - relief for employing innovative employees
• - prototype relief
• - relief for robotization
• - relief for expansion or development
• - consolidation relief
• - relief for the purchase of a payment terminal
• - relief for research and development activities
• - IP BOX relief
• - deduction of payments to the Individual Retirement Security Account
• - deduction of donations for religious worship and sports and cultural activities, supporting higher education and science
• - rehabilitation relief
• - Internet relief
• - thermomodernization relief
• - relief for activities in a special investment zone
• - relief for blood donation.

Important! If you settle income taxes on general terms (according to the tax scale) or with a flat rate, and your income in a given month is lower than the minimum wage applicable in a given year, the amount of the health insurance contribution in that month will be 9% of the minimum wage.

The minimum wage in 2022 was PLN 3,010 gross. This means that the minimum health insurance premium in 2022 amounted to PLN 270.90, in the period from January to June 2023 - PLN 314.10, in the period from July to December 2023 - PLN 324.00           

• - In the case of the flat rate (19%), the subject of taxation is income.
• - In the case of a lump sum on registered income, the subject of taxation is the achieved income.

Important! Income is revenue less tax deductible costs, i.e. costs of running a business

INCOME = REVENUE - COSTS

The tax scale (taxation according to general rules) is the basic form of taxation of income from business activity, if you do not decide to choose another form of taxation, you will automatically be taxed according to general rules.

Check if you will be a VAT payer - if you need to register as a VAT payer, you will have to set up a company bank account.

As a rule, all entrepreneurs should register as VAT payers, but you do not have to do it if:

• - sales do not exceed the limit of 200,000 PLN per year (subjective exemption)
• - sales concern only goods and services exempt from VAT

According to Art. 43 sec. 1 point 19 of the VAT Act the exemption applies to medical care services for prevention, preservation, rescue, restoration and improvement of health, provided by the following professions:

• - doctor and dentist,
• - nurse and midwife,
• - medical professions, referred to in art. 2 sec. 1 point 2 of the Act on Medical Activity,
• - psychologist

Specify your business account. Entrepreneurs not registered as VAT payers may use a company account or their private account in business activity - however, it must be an account that has only one holder.

• - Determine the place for storing accounting documents (invoices, bills, documents confirming incurring expenses).
• - Think about whether you want to take advantage of ZUS exemptions and in what form (loss relief, preferential ZUS)

VAT is a tax levied at every stage of trade in goods or services. Its value is added to each transaction.
You pay VAT regardless of PIT and whether you settle PIT on general terms - according to the tax scale, according to the flat rate, as a lump sum on registered income or on the basis of a tax card.