Change in tax limits in 2025 – what does this mean for companies?

Due to the lower value of the euro, from the new year the revenue limits entitling to certain tax reliefs will be reduced. This is because each year the tax limits for the year are determined on the basis of the average euro exchange rate announced by the National Bank of Poland on 1 October. Due to the decrease in this exchange rate from PLN 4.6091 to PLN 4.2846, the revenue limits entitling to benefit from tax preferences in 2025 will be lower.

Small VAT taxpayer - who will keep the status?

From the new year, new limits for small VAT taxpayers apply. In order to continue to benefit from simplified settlement rules, such as the cash accounting method or quarterly VAT settlements, the company will have to generate lower revenues than at present. If the new threshold is exceeded, the company will have to switch to more complicated settlement procedures.

Small taxpayer for VAT - limits

Small PIT and CIT taxpayers - what changes?

To benefit from the 9% CIT rate in 2025, companies must meet two criteria:

1. Revenue for 2024, including applicable VAT, may not exceed PLN 8,569,000,
2. Current revenues in 2025 excluding VAT due may not exceed the equivalent of EUR 2 million.

Moreover, new companies and small CIT and PIT taxpayers can benefit from the tax relief of writing off the value of investments more quickly. They have two options to choose from in 2025:

• Preferential depreciation of fixed assets in groups 3-8 of the classification of fixed assets up to the limit of EUR 50,000 (PLN 214,000), or
• One-off depreciation of brand new machinery and equipment up to a limit of PLN 100 000.

Lump sum from registered revenue - limits in 2025

A lump-sum settlement is available if the entrepreneur generated revenues in the previous tax year that do not exceed:

• EUR 2 000 000 - from a sole proprietorship,
• EUR 2,000,000 - the sum of the revenue of the company's partners from activities carried out as a company.

Taking into account the above and the euro exchange rate, the revenue limit that will determine the possibility of using the lump-sum tax on registered revenue in 2025 will amount to PLN 8,569,200 (in 2024, for comparison, the amount is PLN 9,218,200).

The right to quarterly lump-sum settlement will be acquired by taxpayers who generate revenues in 2024 in an amount not exceeding EUR 200,000, i.e. PLN 856,920 in conversion.

An entrepreneur who exceeds the above limits during 2025 will lose the right to lump-sum taxation and the quarterly lump-sum settlement during the year.

Full accounting - when is it compulsory to keep accounting books in 2025?

There will be changes to the obligation to keep accounting books from 2025. From 1 January 2025, the threshold for the obligation to have full accounting will be raised to €2.5 million. The increase in the threshold is set out in the Government Bill to amend the Accounting Act, the Act on Statutory Auditors, Audit Firms and Public Supervision and certain other acts.

At present, entrepreneurs are required to maintain full bookkeeping if their annual revenue exceeds the equivalent of €2 million.

The increase in the threshold is good news for companies, as more of them will be able to use simplified forms of accounting, such as revenue and expense ledgers. The aim of the change is to reduce the administrative burden for smaller companies. By raising the threshold, more entrepreneurs will be exempt from the obligation to keep full accounts, which may translate into time and money savings.

Important! The new provisions on the limit for bookkeeping are due to come into force on 1 January 2025 and are to apply to the financial year beginning after 31 December 2024.

On 15 October 2024, the bill was referred to the Public Finance Committee for its first reading.

Tax and accountancy - how can we help?

As part of our tax advisory services, we provide clients with both ongoing support in the areas of CIT, PIT and VAT, as well as assistance in areas selected by the company. Learn more, check out our services: Tax Advisory in Poland 

We also provide professional accounting services for companies with the highest standards of security. No matter whether your company is just starting up (start-up) or already operating in the market and regardless of its controlling and reporting structure, our accounting services are always tailored to individual needs and provided with commitment.

Check out our services: Accounting services in Poland