06
May

Unregistered business activity in Poland.

Good news for those who earn in the unregistered activity. The Ministry of Finance confirms that it will reduce to the minimum the paperwork – for us and the contractors with whom we cooperate.

Person conducting an unregistered business activity in Poland does not have to pay advances for personal income tax. He just counts incomes to so-called other sources, he shows in his annual statement and after calculating his income he pays tax according to the scale (18 or 32 percent).

Considering that unregistered activity is one in which in a month we earn no more than PLN 1,050, the tax will be low at the end of the year, and if we only worked occasionally it may not be at all – the tax-free amount will save us.

As it appears from the declarations submitted by the Ministry of Finance, the companies with whom the undeclared activities cooperate will also benefit. They do not have to perform the duties of the payer, i.e. deduct advances on PIT, pay them to the office or issue PIT-11. They will be able to include expenses incurred for tax costs.

The possibility of conducting non-reverse business is an element of the business constitution, i.e. the facilitation package for entrepreneurs – it came into force at the end of April. Those who earn up to PLN 1,050 a month on their activities do not have to report it at all.

Only after exceeding this threshold, you must submit an application to the Central Register and Information on Economic Activity.

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