Available forms of taxation
In 2026, the taxpayer has only three choices forms of taxation personal income tax. Until the end of 2021, the choice was broader, but the provisions of the Polish Deal made it impossible to choose the tax card. It is worth mentioning, however, that those who have used it in the past (without interruption) can still settle accounts with the tax office in this way.
General rules – PIT-36
Also known as the tax scale, the general rule is the most basic method of income taxation for entrepreneurs.
- Taxpayers with income of PLN 30,000 or less per year will not pay tax on it.
- Income between PLN 30,000 and PLN 120,000 entails a 12 percent PIT, from which the tax-reducing amount (PLN 3,600) is subtracted.
- Taxpayers whose income exceeds PLN 120,000 pay PLN 10,800 in tax and an additional 32% on the excess over PLN 120,000.
Every entrepreneur who settles using the tax scale also pays a 9% health contribution, which depends on income but – for several years – has been non-deductible.
Example:
Mr. Leszek runs a sole proprietorship, in which he earns a income amounting to about PLN 300,000 a year. If he were to pay tax on this amount, the general rules would be extremely unprofitable for him. However, Mr. Leszek’s company generates high costs – at PLN 190,000 in 2025.
This means that Mr. Leszek earned an income of PLN 110,000 – so he falls within the first tax threshold. In this situation, the choice of the tax scale as a form of taxation is justified.
Thus, the general rules are a good option for companies that generate large deductible expenses, making them unlikely to exceed the second tax threshold.
Flat tax
The 19% flat tax is reserved for companies that earn high income after deducting expenses, or that generate few of these expenses. The flat tax settlement does not depend on the amount of income earned – so the entrepreneur will always pay 19% – whether on PLN 200,000 or PLN 15,000,000.
Example:
Ms. Matilda runs a large company and incurs large deductible costs, but at the same time generates high revenue. In 2025, the company generated PLN 1,412,000 in revenue with PLN 900,000 in expenses. If Ms. Matilda had used the tax scale, she would have earned noticeably less, while the flat rate for her type of business (freelance) is not favorable either – it is 17%. Fortunately, the entrepreneur opted in advance for flat taxation.
When choosing a form of taxation, keep in mind that the flat tax, although it offers a fixed, predictable rate and gives you the opportunity to deduct expenses, also has several disadvantages. The downsides of a flat tax may be more or less pronounced, depending on the level of your business income. If you have a high income, you’ll also pay a high health premium, which is 4.9% on income. You also won’t settle with your spouse or take advantage of the many tax benefits available to general taxpayers.
Lump sum on registered income
In recent years, the lump sum has been gaining popularity. It is a form of taxation under which the taxpayer makes contributions on income, which means that he cannot deduct deduct deductible expenses. On the one hand, this means that purchases made for the company will not reduce taxes; on the other hand, entrepreneurs on a flat rate do not have to worry about recording business purchases.
Most significant, however, are the tax rates – lower than the flat tax, and in some cases even from the first threshold of the tax scale.
What’s more, flat-rate taxpayers pay a low, flat-rate health contribution – it remains attractive up to the level of PLN 300,000 in annual income, making flat-rate a very competitive form of taxation.
Example:
Mr. Norbert is engaged in manufacturing activities, which means he can apply a flat rate of 5.5%. In such a situation – even though he incurs costs – a lump sum from registered income is the most favorable option for his business.
Mr. Norbert’s company has revenues of no more than PLN 300,000, which means that the health contribution for it is PLN 769.43 per month (figures for 2025).
Important!
The health contribution for flat-rate taxpayers comes in three thresholds:
- for taxpayers with income of up to PLN 60,000 a year is 60% of the average monthly salary in the fourth quarter of the previous year,
- for taxpayers with income of PLN 60,000 – 300,000 per year is 100% of the average monthly salary from the fourth quarter of the previous year.
- for taxpayers whose income exceeded PLN 300,000 – 180% of the average monthly salary from the fourth quarter of the previous year.
As we write this article, the rates for 2026 are not yet known. In 2025, entrepreneurs paid respectively:
- PLN 461.66 per month at a threshold of up to PLN 60,000,
- PLN 769.43 per month at a threshold of up to PLN 300,000,
- PLN 1384.97 per month at a threshold of more than PLN 300,000 per year.
Whether a lump sum is profitable for your business depends largely on the lump sum rate. For a full directory and a broader discussion of the topic, see our article: Lump sum taxation – when does it pay off?
Choosing a form of taxation in 2026
As we mentioned at the beginning of the article, entrepreneurs who do business in 2026 will have three forms of taxation to choose from: general, flat tax and lump sum. If the company has so far used one of them, the next year will automatically start under the same rules.
If you are just starting your own business, you need to know that choosing a form of taxation is as important as it is difficult – especially at the beginning. Before you do so, prepare projections of your business income and expenses – these two elements are key to choosing a taxation method. In the previous chapters, we explained which forms of taxation are advantageous in the various situations a business may find itself in. Based on this, you can more easily choose the right form of taxation for your business.
Important!
While at first it may seem like a disadvantage to have a tax scale for income above the first tax threshold, also consider your personal situation.
Taxpayers settling on a flat tax or flat rate on income are not eligible for tax credits or a tax-free amount – these types of preferences are only available to taxpayers on a general basis.
How to change the form of taxation in 2026?
Every entrepreneur has the right to change the form of taxation – under certain conditions. First: the change is possible only once a year, and within a strict deadline.
You can change the form of taxation until the 20th of the month following the month in which you earn your first business income for the year. So if you get income in January, you can change the form of taxation until February 20.
Important!
What about new companies? A company established in April 2026 that generates its first revenue in the following month (i.e., May 2026) will be able to change its form of taxation until June 20, 2026.
What steps should be taken to change the form of taxation?
Make sure you want to change the form of taxation and it will benefit your business – if the new form of taxation proves too burdensome, you will only be able to change it the following year!
Submit a statement on the change of taxation form to the relevant tax office or online using the form available at https://biznes.gov.pl.
Sign and send the prepared application – while remembering that signing the document is not the same as sending it.
Make sure you receive confirmation that the application was sent to your email address and a UPO (available in your Entrepreneur Account).
Important!
No confirmation means that the application has not been sent. In such a situation, check the status of the application in CEIDG, in the My Company tab.
When the application for a change in the form of taxation is verified, you will receive information at the e-mail address provided. At this stage, the application may be accepted by CEIDG or rejected.
What to do if there are problems with the application?
If your application was rejected or you have doubts that you filled everything out correctly, you can check a few items where mistakes are common.
Log in to CEIDG, and under My Business find the application for change of taxation form. Download it, and then check it:
- the date of application (in most cases it should not exceed February 20 this year. – assuming that the company made its first revenue in January this year),
- the date on which the change occurred (if your company was already operating in the previous year, the date on which the change occurred should indicate January 1 of this year),
- the chosen form of taxation,
- Also check the correctness of the other data entered. CEIDG may reject an application if it detects incorrect information in it.
Important!
The postponement of any deadline, as specified in the tax law, is possible only with the condition of the deadline not being exceeded.
Once the deadline – for example, for choosing a form of taxation – has passed, it is absolutely impossible to postpone it. In a situation in which an entrepreneur submits a request for deferral after the deadline has passed, the office will likely respond with a refusal to initiate proceedings.
These rules work, of course, also in the other direction: the expired term cannot be shortened.
Can the deadline for choosing a form of taxation be postponed?
Finally, we come to the main topic of this article. Deferral of the deadline for choosing a form of taxation is possible, but subject to certain limitations. The basis for deferral is Art. 48. § 1 of the Tax Ordinance. It proclaims that:
The tax authority, at the request of the taxpayer, in cases justified by the important interest of the taxpayer or the public interest, may postpone the deadlines provided for in the tax law, except for the deadlines provided for in Articles 68-71, Article 77 § 1-3, Article 79 § 2, Article 80 § 1, Article 87 § 3 and 4, Article 88 § 1 and Article. 118.
The exceptions mentioned in the law are:
- statute of limitations,
- deadline for refunding the overpayment,
- The expiration date of the right to file an overpayment claim,
- The expiration date of the right to a tax overpayment refund,
- The deadline for issuing a bill and requesting a bill,
- The deadline for storing copies of bills,
- The statute of limitations on the right to issue a decision on the liability of a third party and the liability arising from that decision.
Conditions for deferral – substantive term
However, the subject of deferral of the deadline for choosing a form of taxation raises legitimate doubts among taxpayers (and authorities), and this is because the aforementioned Article 48 of the Tax Ordinance speaks of deferral of
Thus, it is crucial to first determine whether the deadline for choosing a form of taxation is substantive in nature. The answer to this doubt is in the affirmative – for the deadline of the 20th day of the month following the month in which the taxpayer obtained the first business income in a given year stems from the law (Article 9a(1) of the PIT Law, Article 9(1) of the Lump Sum Tax Law), and not from a tax decision.
Conditions for deferral – important interest (taxpayer or public)
Does this prejudge the possibility of postponement? Well, no. Let’s refer again to Article 48 of the Tax Ordinance. It speaks of deferral in cases justified by important interests of the taxpayer or the public interest. Both of these terms are vague, which opens up room for interpretation.
So is it enough that the taxpayer is convinced of the need to change the form of taxation for the premise of the taxpayer’s important interest to be met? Not necessarily – the office may not accept such an explanation. In order to be sure that the deferral will succeed, it is worthwhile to take care of stronger grounds that can be presented to the tax authorities.
A circumstance that may postpone the deadline, for example, is a serious illness of the taxpayer, who could not file the relevant documents because of it. However, if the deadline has already passed, deferral will not be granted.
Summary
Deferral of the deadline for choosing a form of taxation is possible in the sense that the regulations do not exclude it. However, in order to obtain a decision on deferral, it is not enough to apply on time. It is also necessary to meet the condition of an important interest – of the taxpayer or of the public. In other words: deferral on the grounds that the taxpayer forgot to do it earlier is unlikely to happen.
The authority issuing the decision will take into account the circumstances that prevented the entrepreneur from changing the form of taxation. These, in turn, should be described in detail and documented.
