“The main purpose of the 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” – it was reported in statement Chancellery of the President. The document also contains detailed provisions specifying the principles and conditions of tax settlement using the cash method.
Cash PIT with the president's signature. The conditions for using this settlement method have been established
The cash method “involves the possibility of determining the date of creation of income from business activity and deducting costs of obtaining income after settling the receivable”. Importantly, it will be available to taxpayers who start running a business, generate income from their own business and meet other conditions specified in the Act.
- The first of them is related to the size of the independently run business activity – “the solution will be available to entrepreneurs whose revenues from their independently run business activity in the year immediately preceding the tax year did not exceed PLN 1 million. In the case of an enterprise, inheritance will also include revenues income from business activities run independently by the deceased entrepreneur.
- The second condition is related to not keeping accounting books – “a taxpayer who meets the remaining conditions for the use of cash PIT will be able to choose the cash method, resigning from keeping accounting books in favor of a tax book of income and expenses.”
- The third condition concerns formal issues – “it consists in submitting to the competent head of the tax office a written declaration on the choice of the cash method by February 20 of the tax year, and in the case of a taxpayer starting a business during the tax year, by the 20th day of the month following after one month of starting a business.
The cash accounting method will come into force on January 1, 2025. The most important details are provided
Cash PIT will apply “only to revenues resulting from transactions between the taxpayer and the entrepreneur […] and are documented with invoices.” Importantly, the cash method has been called an optional solution. “If selected, the taxpayer will be obliged to use it throughout the entire tax year. Taxpayers will also be obliged to keep records of invoices documenting revenues settled using the cash method. In the event of the taxpayer's death, the inherited enterprise will be obliged to continue keeping records of invoices,” the Chancellery of the President said in a statement.