The so-called cash PIT
As she informed Chancellery of the President of the Republic of Polandthe main purpose of the signed act is to introduce the possibility for entrepreneurs to choose the cash method of settling income and tax-deductible costs, i.e. the so-called cash PIT. She explained that in accordance with the cash method, an entrepreneur may determine the date of generating income from business activity and deducting tax-deductible costs after settling the receivable.
Who can benefit from the new solution?
They will be able to use the new solution taxpayers, including taxpayers starting a business, who generate income from independently run business activities and meet other conditions specified in the Act.
“The first condition is related to the size of the independently run business activity. This solution will be available to entrepreneurs whose revenues from independently run business activity in the year immediately preceding the tax year did not exceed PLN 1 million. (…) The second condition for using the method is cash is not keeping accounting books,” informed the Chancellery of the President of the Republic of Poland.
The third condition is formal and concerns submitting a declaration on the choice of the cash method to the competent head of the tax office within a specified period. (PAP)
