In 2022, due to numerous changes introduced by the provisions of the Polish Order, more entrepreneurs will change the form of taxation than in previous years. When deciding to take such a step, it is worth remembering about the statutory deadlines. If they are exceeded, it will be impossible to change the form of taxation by the end of 2022.
On January 1, 2022, revolutionary changes to the law came into force, introduced by the so-called the Polish Deal Act. Due to, inter alia, to changes in the rules for determining the health insurance contribution and the inability to deduct it from tax, many entrepreneurs will be forced to change the form of taxation in order to reduce the amount of losses achieved in 2022. However, a change in the form of taxation is possible only within the statutory deadlines. Until when can entrepreneurs submit a declaration of a change in the form of taxation?
Change in the form of taxation in 2022 – binding deadlines
Pursuant to the provisions of the PIT Act, each taxpayer may change the form of taxation of his company. In the event of a change in the form of taxation to a flat or lump sum tax the entrepreneur may change the form of taxation by the 20th day of the month following the month in which the taxpayer achieved the first income in the tax year or until the end of the tax year, if the first such income was achieved in December of the tax year.
This means that if the entrepreneur first generated income in the tax year in January, the time to change the form of taxation is only until February 20.
They are in a slightly different situation entrepreneurs who want to change the form of taxation from a tax card to another. The declaration on the change of the form of taxation in their case must be submitted by 20 January of the tax year at the latest.
In 2021, the entrepreneur conducted activities taxed on the basis of a tax card and in 2021 he wants to resign from this form of taxation. This entrepreneur has time to submit an application for resignation from the tax card and choose a different form of taxation only until January 20, 2022.
The entrepreneur wants to change the form of taxation from a tax scale to a lump sum. The first revenue in the year was obtained in mid-January. In order to change the form of taxation, the entrepreneur must submit a declaration by February 20, 2022 at the latest.
Keeping the above deadlines is extremely important. If they are exceeded and not submitted a declaration of willingness to apply a new form of taxation in 2022, the entrepreneur will be forced to settle accounts under the current rules throughout 2022.
It is not possible to use a tax card
The provisions of the Polish Governance will make it impossible for entrepreneurs change of the tax form to a tax card in 2022. From 2022, only taxpayers who were taxed in this form before 2022 and continue to tax in the form of a tax card can use it. More on this subject in the article “Polish Order: Limitations in the use of the tax card from January 2022”.
Where to submit a declaration on changing the form of taxation in 2022
The declaration of resignation from a given form of taxation may be submitted by the entrepreneur both directly to the tax office and via CEIDG. However, it is worth bearing in mind the recent changes to the Central Register and Information on Economic Activity, which entered into force on December 13, 2021. More on this subject in the article “Changes in CEIDG from December 13, 2021”.
Forms of taxation Polish Order