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Unregistered activity. Revenue limits in 2024

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The revenue limit for unregistered activities from January to June 2024 is PLN 3,181.50, and from July it will be PLN 3,225. Pursuant to the Entrepreneurs’ Law, a taxpayer does not have to register his business if his monthly income is lower than 75 percent of the minimum wage.

Unregistered (unregistered) activity is small commercial activity of natural persons that does not require company registration. Conducting such a business does not require an entry in CEIDG, i.e. the Central Registration and Information on Economic Activity.

Unregistered activity – limits

As Piotr Juszczyk, chief tax advisor at inFakt, explains, unregistered activity is beneficial for the taxpayer because it is characterized by a minimum amount of formalities and no need to pay ZUS contributions.

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“It is taxed and settled in the annual return according to the tax scale. If the taxpayer earns income only from unregistered activities, he would not pay tax in 2023 because the tax-free amount is currently PLN 30,000,” he explains.

From January 2024, the minimum wage is PLN 4,242. From July 1, this amount will increase to PLN 4,300.

“This means that in the first half of the year, the monthly income from unregistered activities cannot exceed PLN 3,181.15. In the second half of the year, it cannot exceed PLN 3,225 a month. As a result, you will be able to earn up to PLN 38.4 thousand without registering your business. However, you should remember about monthly limits, which may be a barrier to running such a business,” the tax advisor notes.

Changes are coming

However, a project to change the 75% income limit is being prepared in the Sejm. minimum wage per month to an annual limit of nine times the minimum wage. This is the equivalent of twelve times the minimum wage and a factor of 75%.

“The proposed change is intended to introduce an annual, rather than monthly, amount of income, up to which it is possible to conduct so-called unrecorded activities. Such a change would be beneficial for taxpayers. Let’s imagine a person who produces products for a long time and then in a short time sells them. As a consequence, it may turn out that with today’s regulations, the monthly limit will be exceeded. However, if the limit were calculated annually, it would not be exceeded. Such a change would certainly contribute to increasing the activity of many people undertaking small-scale economic activities,” explains Juszczyk.

Main photo source: Shutterstock

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