Tax limits up in 2023

The conversion of most limits expressed in euro is made according to the average euro exchange rate announced by the National Bank of Poland on the first working day of October of the previous tax year, rounded up to PLN 1,000. This year, the first working day of October was 3 October. According to the National Bank of Poland exchange rate table No. 191/A/NBP/2022, the euro exchange rate on that day was PLN 4.8272 (last year it was PLN 4.5941). This means that all tax limits expressed in euro will increase.

Small taxpayer

Let us start with the limit for small taxpayers. A small taxpayer under income tax laws (PIT, CIT) is one in which the value of sales revenue (including VAT) did not exceed in the previous tax year an amount expressed in PLN equivalent to the equivalent of EUR 2 million. In 2023, this will be the limit at PLN 9,654,000. Currently, it is PLN 9 188 200.

It is also worth mentioning the VAT limits. Here, too, we have a small taxpayer, if the value of sales (including VAT) does not exceed in 2022. EUR 1.2 million, that is, in 2023 it will be PLN 5 793 000. Currently, it is PLN 5,513,000. However, remember that under the SLIM VAT 3 package, this limit can be raised to €2 million.

One-off depreciation

Another limit relates to one-off depreciation. It follows from the regulations that a small taxpayer may take advantage of one-off depreciation under de minimis aid, i.e. the direct inclusion in tax deductible costs of expenditure on the acquisition (or manufacture) of fixed assets from groups 3-8 of the KŚT (excluding passenger cars). The total amount of non-recurring depreciation cannot exceed the equivalent of €50,000. In 2023, this will be PLN 241 000. Currently, it is PLN 230 000.

Cash method

In income tax, we still have a limit for cash method settlements. Small taxpayers who have chosen the cash accounting method submit quarterly declarations to the tax office by the 25th day of the month following each consecutive quarter. Quarterly declarations may also be submitted by: small taxpayers who have not chosen the cash method; taxpayers subject to lump-sum taxation on corporate income, if the value of sales (including the amount of tax) of such taxpayers in the previous tax year did not exceed the amount expressed in PLN equivalent to EUR 4 million, i.e. in 2023 it will be PLN 19,309,000. Today, the limit is PLN 18,376,000.

Lump sum

The next limit is the one giving the option of taxation on a lump-sum basis on registered income. Individuals, civil partnerships and general partnerships of individuals will be able to benefit from lump-sum taxation on registered income in 2023, if their revenue from business activity for 2022 does not exceed EUR 2 million, i.e. PLN 9,654,000. Today, it is PLN 9 188 200.

Full books

One more limit that entrepreneurs must bear in mind is that of keeping full books. From 2023, entities indicated in the Accounting Act, whose revenues for 2022 amounted to at least EUR 2 million, i.e. PLN 9 654 000, will be obliged to keep full books of account. Today, it is PLN 9 188 200. This applies to natural persons, civil partnerships of natural persons, general partnerships of natural persons, partnerships, inherited enterprises and civil partnerships of natural persons and inherited enterprises.