Tax limits for 2021
Tax limits for 2021 determine the status of a small taxpayer for the purposes of CIT / PIT and VAT.
| TAX LIMITS IN 2021 | SMALL TAXPAYER STATUS FOR CIT / PIT PURPOSES In 2021 | SMALL TAXPAYER STATUS FOR VAT PURPOSES IN 2021 |
|---|---|---|
| VALUE OF SALE INCOME WITH VAT IN 2020 (exchange rate from October 1, 2020 in round to PLN 1.000) | up to EUR 2.000.000 (PLN 9.031.000) | up to EUR 1.200.000 (PLN 5.418.000) * |
| ONE-OFF CUSHIONING (exchange rate from October 1, 2020 in roundabouts to PLN 1.000) | up to EUR 50.000 (PLN 226.000) | - |
| CIT RATE | 9% | - |
| *) The taxpayer running a brokerage enterprise, managing investment funds, being an agent, contractor or other person providing services of a similar nature (except for a commission) will obtain the status of a small taxpayer when amount of commission with VAT (or other form of gross remuneration) for services rendered in 2020. will not exceed EUR 45.000 (exchange rate from October 1, 2020, rounded up to PLN 1.000 -> 203.000 PLN). |
Tax limits - the status of a small taxpayer for CIT / PIT purposes entitles you to:
- one-off depreciation of fixed assets included in the group 3-8 KŚT, excluding passenger cars. A one-off depreciation write-off is made in the tax year in which these assets were entered into the fixed assets register. The total value of one-off depreciation charges may not exceed the limit of PLN 2021 in 226.000,00,
- preferential application CIT rates = 9% for revenues other than from capital gains for months or quarters in which the sum of net sales revenues (excluding VAT) and capital revenues generated since the beginning of the current year did not exceed the limit of PLN 9.097.000 (EUR 2.000.000 * exchange rate from the first business day of the current year) the tax year rounded to PLN 1.000).
Tax limits - psmall taxpayer's daddy for VAT purposes entitles to:
- cash accounting method of VAT, where the tax obligation arises on receipt of all or part of the payment for the delivery of goods / services. The cash method can be applied after a written notification to the head of the Tax Office by the end of the month preceding the period for which the taxpayer will use the cash method.
- submitting quarterly VAT declarations and settlements, except:
- "New VAT taxpayers", i.e. taxpayers registered by the head of the Tax Office as active taxpayers for a period of 12 months from the month in which the registration was made,
- taxpayers who made it in a given quarter or the four preceding quarters delivery of goods from Annex 15 to the VAT Act, unless the total value of these deliveries, excluding VAT, did not exceed the amount of PLN 50.000,00 in any month of these periods,
- taxpayers who in a given quarter will import goods settled through a VAT declaration.
Balance sheet limits for 2021
The obligation to keep accounting books applies to:
- entities obliged to keep accounting books due to their legal form,
- natural persons, civil law partnerships of natural persons, civil law partnerships of natural persons and enterprises in decline, partnerships of natural persons, partner companies, enterprises in decline - which have achieved or exceeded the limit of revenues in the previous financial year.
| LIMITS | OBLIGATION TO MAKE ACCOUNT BOOKS IN 2021 |
|---|---|
| REVENUE IN 2020 ** (course from October 1, 2020) | at least EUR 2.000.000 (PLN 9.030.600,00) |
| **) - for taxpayers conducting the KPiRR in 2020 - the value should be assumed revenues from business activities in accordance with Article 14 of the PDOF Act, - for taxpayers operating in 2020. accounting books - one of the higher values should be used operating income established in accordance with the Act on PDOF and/ or revenues from the sale of products and goods and revenues from financial operations established according to UoR (without other operating income). |
The obligation to audit financial statements applies to:
- entities literally listed in Art. 64 section 1 of the Act,
- other entities (mainly limited liability companies, general partnerships, partnerships, limited partnerships, civil partnerships and enterprises of natural persons), which for the previous financial yearfor which the report has been prepared have met at least two of the following conditions:
- net revenues from the sale of goods and products and financial operations for the financial year ≥ EUR 5.000.000,
- total assets at the end of the financial year ≥ 500.000 euros,
- average annual employment in full-time employment ≥ 50 people.
| FINANCIAL STATEMENTS | REVENUE FROM NET SALE | SUM OF BALANCE SHEET ASSETS | MEDIUM YEAR EMPLOYMENT FULL-TIMES |
|---|---|---|---|
| 2020 YEAR (course from December 31, 2019) | AT LEAST 21.292.500 PLN | AT LEAST 10.646.250 PLN | AT LEAST 50 PEOPLE |
| 2021 YEAR (course from December 31, 2020) | AT LEAST 23.074.000 PLN | AT LEAST 11.537.000 PLN | AT LEAST 50 PEOPLE |
Simplifications in bookkeeping relate to:
- entities that for the previous financial yearfor which the report has been prepared have met at least two of the following conditions:
- net revenues from the sale of goods and products for the financial year <PLN 51.000.000,
- total assets of the balance sheet at the end of the financial year <PLN 25.500.000,
- average annual employment in full time jobs <50 people.
| Type of simplification: • non-compliance with regulations Art. 3 clause 4 and 5 of the Act, i.e. classification of lease contracts according to the principles set out in tax regulations (Art. 3 clause 6 UoR), • simplified rules for calculating the cost of product manufacture, ie determining the cost of product manufacture without taking into account the level of capacity utilization (the cost of production determined in this way cannot be higher than the net realizable price)Art. 28 section 4a of the Act), • non-application of the provisions of the Regulation of the Minister of Finance of December 12, 2001. on detailed recognition principles, valuation methods, scope of disclosure and presentation of financial instruments (Art. 28b paragraph 1 UoR), • refraining from determining deferred tax assets and reserves (Art. 37 clause 10 UoR). |
- micro units, small units, non-governmental organizations (including foundations and associations) within established limits entitling them to use simplifications in bookkeeping, EXCEPT: limited companies, limited joint-stock partnerships, general partnerships or limited partnerships, whose all partners incur unlimiteddpowiedzialność are capital companies, limited joint-stock partnerships or companies from other countries with a similar legal form to these companies
| Type of simplification: • abandoning the creation of provisions for liabilities and write-downs of assets (Art. 7 item 2b of the Act), • applying tax regulations for balance sheet purposes in the area of depreciation of fixed assets and CCI (Art. 32 section 7 and Art. 33 clause 1 UoR), • units' failure to make accruals regarding future employee benefits, including retirement benefits (Art. 39 clause 6 UoR). |
The micro units are:
- commercial companies, civil law partnerships and branches of foreign entrepreneurs, which in the financial yearfor which the financial statement is prepared and in the year preceding this financial year have met at least two of the following three conditions:
- net revenues from the sale of goods and products for the financial year <PLN 3.000.000,
- total assets of the balance sheet at the end of the financial year <PLN 1.500.000,
- average annual employment in full time jobs <10 people.
- entities obliged to keep accounting books as a result of achieving or exceeding the limit of revenues in the previous reporting year, which in last financial year generated revenues from the sale of products and goods as well as financial operations in the range of 2.000.000 - 3.000.000 eur (course from 31.12.2020 -> 9.229.600 - 13.844.400 PLN)
- entities voluntarily keeping accounting books,
- trade unions, employers 'organizations, chambers of commerce, representative offices of foreign entrepreneurs, socio-professional organizations of farmers, professional self-government organizations, craft self-government organizations and the Polish Motor Insurers' Bureau,
- enterprises in decline operating if they were micro entities on the day preceding the opening day of the estate.
Small units are:
- commercial companies, civil law partnerships and branches of foreign entrepreneurs, which in the financial yearfor which the financial statement is prepared and in the year preceding this financial year have met at least two of the following three conditions:
- net revenues from the sale of goods and products for the financial year <PLN 51.000.000,
- total assets of the balance sheet at the end of the financial year <PLN 25.500.000,
- average annual employment in full time jobs <50 people.
- entities voluntarily keeping accounting books,
- enterprises in succession operating if they were small entities on the day preceding the opening day of the inheritance.
ATTENTION!! In order to obtain the status of a micro / small entity, the head of the entity must make a decision by way of a resolution on the preparation of a simplified financial statement according to Annex 4 or 5 of the Act. The resolution may be written down in conditional terms, i.e. the entity will prepare annual financial statements using simplifications for micro / small entities, provided that the conditions specified in art. 3 clause 1a or art. 3 section 1c of the Act. Adoption of a resolution in this form in the current financial year will be binding on the entity with respect to the financial statements for the current year and subsequent years. Simplifications can only be used if they do not have a negative impact on the presentation of the property and financial situation and the financial result in a fair and clear manner. An entity will lose its status of a micro / small entity if it exceeds the thresholds for micro or small entities two years in a row.