Prawo.pl: MF – Cash PIT will be voluntary and for small companies
The Ministry of Finance wants to introduce cash-based PIT on a voluntary basis. It will be available to entrepreneurs whose revenues do not exceed the amount of PLN 500,000 and those starting their business. They will pay the tax when they themselves receive payment from a contractor. This form will be available to those settling according to the scale, a flat rate of 19 per cent and a lump sum on registered income. According to experts, the reform has disadvantages and the revenue limit should be increased, writes the Prawo.pl portal.
Adam Allen, tax adviser and partner at Thedy & Partners, views the change positively in terms of the very idea of dedicated support for budding entrepreneurs. On the other hand, in his opinion, the announced method of implementation is already negative.
Disadvantages of the idea
– Firstly, this support is connected with further complication of the PIT system for entrepreneurs: from the current 3 types of PIT – we will have 4 ways of PIT taxation of business activity (PIT according to the scale, flat-rate PIT, lump-sum PIT, cash PIT). Secondly, this will mean greater expenditure (of the entrepreneur’s time or the expense of an accountant) on business record-keeping, i.e. the need to monitor payments on the revenue and expense side, check the status of contractors for B2B, keep an eye on the low turnover limit. Thirdly, in addition to start-up entrepreneurs, this support will apply to a new category of ‘nano-entrepreneurs’. – because until now, the entrepreneurs’ law provided for the smallest category of entrepreneur as a micro-entrepreneur with a turnover of up to EUR 2 million, explains Adam Allen for Prawo.pl.
At the same time, he adds, the changes could formally be introduced this year, but due to the complications indicated and the associated expected headaches for entrepreneurs – a vacatio legis at least until the beginning of next year would certainly be recommended.
A different route could be taken
– The effect of ‘cash PIT’ from business activity could also be achieved by introducing further simplifications within the framework of the solutions that already exist today – extending the periods of PIT settlements (from quarterly to semi-annual or annual) and / or easier access to the allowance for payment congestion, e.g. for micro-entrepreneurs,” believes Adam Allen.
According to him, the announced project is yet another example of complicating tax legislation by adding new special regulations – even if with a positive intention – instead of simplifying or improving existing regulations.
The entire article is available at this link: PIT kasowy będzie dobrowolny i dla małych firm (prawo.pl)