Choosing the Taxation System for 2025

As the year ends, entrepreneurs are faced with the question: should they change their taxation system? We remind you that this can be done by 20.02.2025, but it is better not to delay. This day is not only the final deadline for submitting the application but also the last day for paying taxes for January under the new system.

Let’s analyze the available taxation systems, their features, advantages, and disadvantages to help you make an informed decision.

Available Taxation Systems

 There are three taxation systems in Poland:

1. Taxation under general rules (zasady ogólne, skala podatkowa)
2. Flat-rate tax (podatek liniowy)
3. Lump-sum tax (ryczałt od przychodów ewidencjonowanych)

1. Taxation under general rules (zasady ogólne, skala podatkowa)

 Calculation method:

The standard form of taxation used by most taxpayers. The tax is calculated based on income (after deducting expenses).

Tax Rates for 2025:

Advantages:

• Possibility of using tax reliefs:
• Joint filing with a spouse (wspólne rozliczenie z małżonkiem).
• IP Box relief.
• Child relief (ulga na dzieci), and others.

Health Insurance Contribution (składka zdrowotna):

• Rate: 9% of income, but not less than 9% of the minimum wage.
• Minimum contribution: 419.94 zł in 2025 (based on the minimum wage of 4666 zł).

Social Contributions (składki społeczne, ZUS):

1. For Preferencyjny ZUS:

• Without accident insurance: 408.60 zł.
• Including accident insurance: 442.90 zł.
• Total minimum: 828.54 zł.

2. For Duży ZUS:

• Without accident insurance: 1646.47 zł.
• Including accident insurance: 1773.96 zł.
• Total minimum: 2066.41 zł.

2. Flat-rate Tax (podatek liniowy)

 The flat tax provides a fixed tax rate of 19%, regardless of income amount. Business-related expenses can be deducted.

Restrictions:

• Cannot use reliefs: wspólne rozliczenie z małżonkiem, IP Box, ulga na dzieci, and others.

 Health Insurance Contribution (składka zdrowotna):

• Rate: 4.9% of income, but not less than 419.94 zł (similar to zasady ogólne).

Social Contributions (składki społeczne, ZUS):

• ZUS amounts remain the same as for zasady ogólne.

This system is suitable for entrepreneurs with high income where expenses also play a significant role.

3. Lump-Sum Tax (ryczałt od przychodów ewidencjonowanych)

The most popular taxation form among SMAR POLAND clients.

Features:

• Tax is calculated based on revenue, without considering expenses.
• Suitable for activities with low costs (e.g., programmers, bloggers, trainers).
• Tax rates depend on the type of activity: 17%, 15%, 14%, 12.5%, 12%, 10%, 8.5%, 5.5%, 3%.

Restrictions:

• Cannot use wspólne rozliczenie z małżonkiem, IP Box, or ulga na dzieci.
• If income exceeds 2,000,000 EUR, the entrepreneur must switch to zasady ogólne and maintain pełna księgowość.

Health Insurance Contribution (składka zdrowotna):

Calculated based on the average salary in Poland.

ZUS amounts for Preferencyjny ZUS and Duży ZUS remain the same as under zasady ogólne. The minimum ZUS amount for income up to 60,000 zł is 854.78 zł.

We hope this information helps you choose the taxation system for 2025.

Example Calculations

An entrepreneur has monthly revenue of 15,000 zł and expenses of 1,000 zł. The ryczałt tax rate is 12%.

Let’s consider General Principles (zasady ogólne) for an entrepreneur on Preferencyjny ZUS:

Let’s consider the Flat Tax Method (podatek liniowy) for an entrepreneur on Preferencyjny ZUS:

Let’s consider Lump Sum Taxation (ryczałt) for an entrepreneur on Preferencyjny ZUS:

Conclusion:

The most advantageous system for this entrepreneur is ryczałt.

If you’re considering changing your taxation system or are unsure which to choose, contact us. We’ll help you calculate and find the optimal solution for your business.

Deadline for switching systems: February 20, 2025!