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Cash PIT. Who will be able to benefit. Conditions. Minister Maciej Berek translates

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The government is starting work on the so-called cash PIT, a solution that assumes that companies are obliged to pay income tax only after actually receiving funds from the invoice. – About 80 percent of small entrepreneurs will be able to use this solution – explained Minister Maciej Berek on TVN24 BiS.

Maciej Berek, member of the Council of Ministers and chairman of the Standing Committee of the Council of Ministers, talking about box office PITstated on TVN24 BiS that “this is a solution for those who will start their adventure with business activity, i.e. will start running a business and for those who already run this business and in the previous accounting year achieved revenues not exceeding the threshold of PLN 500,000 “.

– This may seem like a significant cut-off (threshold of PLN 500,000 – editor), but in practice, the analyzes of the Ministry of Finance indicate that about 80 percent of small entrepreneurs and small business operations will be able to use this solution – said Minister Berek.

Cash PIT for B2B

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He explained that cash PIT applies to relationships between entrepreneurs (B2B). – On the one hand, there is an entrepreneur who incurs some cost and will be able to count it as a tax expense when he incurs it – explained the TVN24 BiS guest.

– On the other hand, the person who issues an invoice and is to receive income from it will include it in tax calculations when this income is (actually) realized – said the minister.

When asked what will happen if the contractor does not pay the invoice, Maciej Berek reminded that “today, if an invoice is issued, it is the basis for immediate taxation.” – We are introducing a solution that says that this tax is to be paid on the paid invoice, but please remember that in the tax system, issuing an invoice determines the tax obligation – he noted.

He added that if the invoice has not been paid, the entrepreneur has no more than two years to clarify the situation, but the new regulations will not abolish the tax obligation itself.

Minister Berek also said that it will be possible to resign from cash PIT after one year, i.e. in the next tax year (in annual cycles).

Cash PIT in the list of government works

Work on a project to introduce the possibility of choosing the so-called cash PIT by entrepreneurs running a business on Monday, in a small size, they were included in the list of legislative and program works of the government – it was announced on the website of the Chancellery of the Prime Minister.

As explained, the purpose of the proposed regulation is to support entrepreneurs running small businesses in the area of ​​personal income tax (PIT). The Ministry of Finance is working on the regulation.

“The proposed solutions assume the introduction of the possibility of choosing the cash method of settling income and costs, the so-called cash PIT, by entrepreneurs running small businesses (optional settlement method). Thanks to these solutions, these entrepreneurs will pay personal income tax only after actually receiving payment. for the goods or services provided and deduct the costs of obtaining revenue on the date of payment for the goods or services provided.

It was added that after 2 years from the date of issuing an invoice, bill or concluding a contract, the taxpayer will have to include income from business activity, even if he does not receive payment from the contractor for the goods or services provided.

The introduction of cash PIT was promised by the Civic Coalition during the election campaign and it was included on the list of 100 items for the first 100 days of the government.

Main photo source: Shutterstock

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