The most important tax changes in 2025 for entrepreneurs in Poland

2025 brings significant changes that will directly impact business operations. The new regulations introduce both benefits, such as the possibility of accounting for income tax using the cash method, and challenges, such as the obligation for large companies to submit accounting records in JPK-CIT format.

In this article, we present the key tax changes that every entrepreneur should be aware of to effectively adapt their business to the new regulations.

Cash PIT

From 1 January 2025, entrepreneurs can account for income tax using the cash method, meaning that tax is charged only when payment is actually received from the contractor, rather than when the invoice is issued.

Who can use the cash-based PIT method?

This method is available to sole proprietors taxed under the progressive scale, flat tax, IP BOX rules, or a lump-sum tax on registered revenues, provided that they:

Did not exceed PLN 1,000,000 in revenue in the previous year,
Do not maintain full accounting records,
Submit a relevant declaration to the head of the tax office.

Health insurance contribution

The amendment simplifies how health insurance contributions are calculated for entrepreneurs. One of the key changes is the exclusion of revenue from the sale of fixed assets and intangible assets from the contribution base. This aims to simplify tax obligations and reduce financial burdens for businesses.

How will the health insurance contribution change for entrepreneurs in 2025?

According to the new regulations, the contribution base:

Cannot be lower than 75% of the minimum wage applicable on the first day of the contribution year, or
Cannot be lower than the product of the number of months the entrepreneur was subject to health insurance in the calendar year and 75% of the minimum wage applicable on the first day of the contribution year.

JPK-CIT

From 1 January 2025, corporate income taxpayers with revenues exceeding €50 million must maintain accounting records exclusively in electronic form and submit them to the tax office after the tax year in JPK-CIT format, within the deadline for filing the CIT-8 tax return.

CIT taxpayers' obligations regarding JPK-CIT

The new obligations will be implemented gradually, following the Ministry of Finance’s schedule:

From the tax or financial year starting after 31 December 2024 – applies to tax capital groups and CIT taxpayers whose revenue in the previous tax year (or financial year for non-corporate entities) exceeded €50 million.
From the tax or financial year starting after 31 December 2025 – applies to CIT taxpayers (non-corporate entities) required to submit JPK_VAT.
From the tax or financial year starting after 31 December 2026 – applies to all other CIT taxpayers and non-corporate entities.

Accounting books – new threshold for full accounting

From 1 January 2025, the revenue threshold requiring full accounting has increased. Sole proprietors, partners in civil partnerships, general partnerships of individuals, and professional partnerships must maintain accounting records if their revenue equals or exceeds €2.5 million.

Until the end of 2024, this threshold was €2 million.

Benefits of increasing the full accounting threshold

Raising the threshold is beneficial for businesses, as more companies will be able to use simplified accounting methods, such as revenue and expense ledgers. The primary goal of this change is to reduce administrative burdens for smaller businesses, saving them time and money.

Notably, the new regulations came into effect on 1 January 2025 and apply to financial years starting after 31 December 2024.

Changes in property tax

In 2025, amendments to property tax regulations clarify key definitions such as "building" and "structure." As a result, entrepreneurs were given the option to extend the deadline for filing the DN-1 declaration until 31 March 2025.

Property tax – how to extend the declaration deadline?

To gain additional time for submitting the declaration, a written notification had to be submitted to the mayor or city president by the end of January 2025. If the notification was submitted, the taxpayer calculates and pays property tax instalments for Q1 2025 based on the average monthly tax amount for 2024:

January – by 31 January 2025
February – by 15 February 2025
March – by 15 March 2025

VAT exemption for small businesses operating in the EU

From 1 January 2025, small businesses can benefit from VAT exemptions in other EU countries. Polish companies operating in other EU member states will have this option under local conditions, while foreign companies operating in Poland must comply with Polish regulations.

Conditions for obtaining VAT exemption in EU countries

To qualify for the exemption, businesses must:

Register for exemption in their home country,
Not exceed €100,000 in annual turnover across the EU,
Ensure their sales in a given country do not exceed that country’s VAT exemption threshold (in Poland, PLN 200,000).

Small businesses will submit quarterly reports to the tax administration of their home country.

Once any of these limits are exceeded, the business loses the exemption.