Joanna Goryca | In Principle

Compared to other forms of professional activity of an individual (for example working under an employment contract or contract of mandate), individual business activity allows the individual to benefit from a range of forms of income taxation. Thus, before generating their first business revenue in Poland, individuals they should examine their activity to find the most appropriate form of taxation. Below we present the available forms of taxation for business income, with their main advantages and disadvantages.

Employment contract, contract of mandate, or sole proprietorship (individual business activity): these are the most common forms of cooperation with individuals in Poland. In this article, we explain the tax and social insurance burdens for individuals working under an employment contract and contract of mandate. In the next article, we will discuss different forms of business income taxation.

The set of parties who can benefit from inheritance and gift tax exemptions will expand. The exemption will now apply to persons who are or have been in a foster family, a family-style children’s home, a care and educational institution, or a regional care and therapeutic institution, as well as persons forming a foster family, running a family-style children’s home, or working with children in a care and educational institution or a regional care and therapeutic institution.

At the end of August 2018, the Ministry of Finance announced future significant changes in the most important tax acts. These changes are to enter into force at the beginning of 2019. We wrote about some of these here last week. Now we present further changes proposed by the Ministry of Finance, as published in the draft act of 24 August 2018 amending the Personal Income Tax Act, the Corporate Income Tax Act, the Tax Ordinance and other acts, which might be particularly important for taxpayers conducting business activity.

The right to claim higher tax costs at 50% has recently been one of the most problematic issues in the relationship between tax authorities and taxpayers. At the beginning of the year this limit was raised twice, but the list of persons entitled to claim such costs was narrowed. Moreover, the tax authorities are consistently doing everything they can to stop taxpayers from taking advantage of this rate. So who is the 50% write-off intended for, and what are the criteria for eligibility?

The latest amendment to the Gambling Act enters into force on 1 April 2017. The effective date may be a joke, but the changes are no laughing matter. Will they achieve the intended results?

The obligation to conduct energy efficiency audits was supposed to be implemented into Polish law in 2015, but it hasn’t happened yet.