The accumulation of work related to preparation for the conclusion of the accounting and tax year, as well as the need to adapt to new rules means that the end of the year will be a stressful time for many taxpayers, – said Anna Zieloni, an additional employee. consultant from MDDP law firm. Find out which tax changes will take effect in 2025.
– Significant and in some cases even revolutionary changes that will be introduced to the tax legislation from 2025 require taxpayers to carefully prepare for their correct implementation. Special attention should be paid to reviewing the records of fixed assets included in real estate tax returns and adapting their classification to the new definitions, said Anna Zieloni.
He added that taxpayers should also adapt their tax and accounting systems to file JPK CIT. Large taxpayers must submit this file for 2025.
He also stated that some changes may have a negative impact on the situation of companies in Poland. – Global minimum tax provisions, introduced for good reasons, can have a negative impact on Poland's investment attractiveness and cause investors to leave. From this point of view, the government's actions seem necessary to prevent the negative consequences of the increase in the tax burden, especially since until 2024 taxpayers will also have to additionally calculate the minimum income tax, he said.
The tax adviser admitted that changes such as cash PIT, reduction of health insurance contributions, increase of book keeping limit or VAT exemption are beneficial for taxpayers and may reduce their tax burden and financial solvency. But most of them are voluntary and mainly aimed at small businesses. Moreover, preparing for these changes requires a lot of effort from taxpayers.
– The absence of the announced 6-month holiday law, the backlog of tax year-end preparation and accounting and the need to adjust records to the new regulations means that the end of the year will be a very busy time. for many taxpayers. Zieloni said that in addition to increasing the tax burden, taxpayers will have to spend additional costs to provide the tax office with the necessary information to conduct tax audits.
The most important changes in taxes in 2025
A very important change that businesses expect to take effect in January 2025 is cash. Taxpayers who take advantage of this opportunity do not have to pay tax when providing services, delivering goods or issuing invoices.
Tax liability based on cash rules arises only when the customer pays the invoice. The same principle applies when including purchase invoices from contractors as tax-deductible expenses, that is, they are included in tax-deductible expenses only when payment is made for the goods or services purchased.
Individual entrepreneurs can use the cash settlement method:
– according to the tax table, with a single tax, according to the IP BOX rules, a lump sum is taxed from the registered income, – if the income from the activity in the year before the tax year does not exceed PLN 1,000,000, – if they are taxed. do not keep an accounting book – if they submit a written statement to the competent head of the office about the choice of cash method.
The cash PIT option is optional. It is the entrepreneur who decides whether this method of tax calculation is useful for him or not.
In 2025, the first part of the changes in the payment of health insurance contributions by businesses will come into force. There are:
– exclusion of income and expenses related to the sale of fixed assets from the contributory base. This is an optional solution, entrepreneurs can independently decide whether, taking into account the income from the sale of fixed assets and thus the costs related to its purchase, in the part that is not included in the tax-deductible costs (not amortized) ), based on the calculation it will be more beneficial for them to pay for medical insurance. If so, they can take them into account, otherwise, they should not include the income from the sale of the underlying funds in the contribution base.
– reducing the minimum rate for calculating health insurance contributions. Businesses taxed under general principles or with a single tax pay a health contribution of 9 percent or 4.9 percent of income, provided that their contribution does not exceed 9 percent of the minimum wage. Starting from 2025, the minimum injuries for medical insurance for entrepreneurs who are taxed according to general bases, single tax and tax card will be 9% of 75% of the minimum monthly salary.
This means a 25 percent reduction in the minimum health insurance premium paid by businesses.
After the change, the minimum health insurance contribution will be PLN 314.96 per month. Entrepreneurs with the lowest income and those with losses will receive PLN 104.98 per month.
Property tax
From January 1, 2025, changes in the real estate tax, which are important for entrepreneurs, will come into force.
Their essence in the Law of the Republic of Tajikistan “On Local Taxes and Payments” is to define concepts such as buildings, structures, construction works, construction works, permanent connection of the object to the ground.
Until now, in order to determine that we are dealing with specific objects, it was necessary to check the Construction Law. From January 1, 2025, all objects for real estate taxation will be defined in the Law on Local Taxes and Fees.
It is assumed that the purpose of new definitions and concepts is not to expand the scope of taxation of businessmen's assets. However, there are cases when the building, structure, construction equipment or technical equipment is classified in a different way than before, which can lead to a change in the tax burden.
“If you have an individual business and decide that the introduction of new definitions of buildings or structures will affect the way your company pays real estate taxes, by January 14, 2025, you must submit new information on real estate and construction objects (IN-1 “). – on websites we read government.
The head of the commune, the mayor or the mayor, who is responsible for your company, will take the information into account when deciding on the amount of real estate tax for 2025.
In turn, if we operate in the form of a company with a legal entity (for example, a limited liability company or a joint-stock company), an organizational unit or a company without a legal entity, we are obliged to submit a property tax return. for the year 2025 until January 31, 2025, taking into account changes resulting from new definitions of buildings and structures and changes effective from January 1, 2025, for example, changes in real estate tax rates determined by the municipality or city council .
Due to the importance of changes in regulations, we can file property tax returns for 2025 by March 31, 2025. To exercise this right, you must provide notice to the mayor, mayor or mayor of the city by January 31, 2025 to use the longer period to file the return. At the same time, we have to calculate and pay tax installments in January, February and March 2025 based on the tax amount for 2024.
“From April, you will pay tax according to the DN-1 declaration. If the payments for the months of January-March are too low, you should compensate the difference according to the amount of tax for 2025. The deadline for submitting the declaration for the current year, that is, until March 31, 2025 “, we read on the government website.
From January 1, 2025, the largest taxpayers of income tax with an income of more than 50 million euros are obliged to keep accounting books only in electronic form and send them to the tax office without a request after the end of the tax year (JPK-CIT), in the deadline for submitting the CIT-8 tax return (effectively until March 31, 2026).
Taxpayers with new obligations must complete their accounting books with the new information required by the tax authorities in the logical structure JPK_KR_PD (income tax) and JPK_ST (fixed assets) – JPK CIT.
Proper data collection and transmission to tax authorities requires updating and sometimes significant restructuring of accounting systems.
From January 1, 2026, this obligation will also apply to other CIT taxpayers who are obliged to send JPK_VAT records, and from January 1, 2027 – to all other CIT taxpayers.
VAT exemption for small companies operating in the EU
Currently, a major obstacle for smaller companies is the need to register for VAT in the country where they sell.
From January 1, 2025, regulations will come into force that allow small businesses to benefit from VAT exemptions in various EU countries.
Companies located in another EU member state may be exempt from VAT in Poland. However, Polish companies operating in other EU member states can benefit from this benefit based on the conditions stipulated in these countries.
To benefit from the exemption in various EU member states, companies must meet certain conditions:
– register for exemption in the company's country of residence, – their annual turnover in all EU member states in the previous or current year does not exceed PLN 100,000. euro, – their sales in this country will not exceed the VAT exemption limit in this country (in Poland it is PLN 200,000).
Limitation of keeping accounting books
From January 1, 2025, the income limit beyond which entrepreneurs must keep accounting books will increase.
Individuals, partners of civil partnerships, full partnerships of individuals and professional companies are obliged to keep accounting records if they have an income equal to 2.5 million euros or more.
By the end of 2024, this limit will be 2 million euros.
The new restrictions apply to fiscal years beginning after December 31, 2024.
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