2025 brought one of the biggest tax system overhauls for entrepreneurs in Poland in years: cash-basis PIT, a higher full-accounting threshold, the first stage of JPK-CIT reporting, and a temporarily lower health contribution. Below is what actually took effect in 2025, along with a note on which of these changes still apply in 2026 and which have changed since.
- Cash-basis PIT: a new way to settle income tax
- Higher full-accounting threshold: EUR 2.5 million
- JPK-CIT: the first rollout stage
- VAT changes: the exemption threshold and the SME procedure
- Lower health contribution: a 75% base instead of 100%
- A new definition of building and structure
- Minimum wage in 2025
- What has changed since 2026
Cash-basis PIT: a new way to settle income tax
Since 1 January 2025, the act of 27 September 2024 amending the Personal Income Tax Act and certain other acts (Journal of Laws 2024, item 1593) has been in force, introducing new Article 14c of the PIT Act. Cash-basis PIT is a voluntary method of settling income tax under which revenue arises only when payment is actually received from the client, not when the invoice is issued or the service is performed.
– revenue from sole proprietorship activity in the previous year did not exceed PLN 1,000,000
– the taxpayer does not keep full accounting books (only a tax revenue and expense ledger)
– a written statement choosing this method was filed with the tax office by 20 February of the tax year
The method applies to both revenue and deductible costs, but has one important limit: if the client never pays, revenue still arises at the latest 2 years after the invoice was issued, or on the day the business is closed (Article 14c(2) of the PIT Act).
Higher full-accounting threshold: EUR 2.5 million
Since 1 January 2025, the net revenue threshold above which a company must keep full accounting books (instead of a simplified tax revenue and expense ledger) rose from EUR 2 million to EUR 2.5 million a year, roughly PLN 10.71 million at the NBP exchange rate announced on the first business day of October of the preceding financial year. This lets more small companies stay on simplified bookkeeping.
JPK-CIT: the first rollout stage
Since 1 January 2025, the JPK-CIT reporting obligation started, an extension of the Standard Audit File that now also covers accounting books and fixed-asset records for CIT taxpayers. It is being rolled out in stages:
2026: applies to remaining CIT/PIT taxpayers on full accounting books who are active VAT payers filing monthly (JPK_V7M)
2027: applies to all remaining CIT/PIT taxpayers on full accounting books, including those filing quarterly (JPK_V7K)
For the largest taxpayers, the deadline for the first submission of JPK_KR_PD and JPK_ST_KR files for 2025 was moved to 31 July 2026.
VAT changes: the exemption threshold and the SME procedure
The VAT exemption threshold itself stayed at PLN 200,000 of annual sales in 2025, but how it is calculated changed: since 1 January 2025, intra-EU supply of goods and reinsurance services (unless ancillary) are included in the threshold calculation, whereas previously they were not.
The SME procedure was also introduced, an EU-wide facility for small businesses: since 2025, a Polish entrepreneur can use the VAT exemption not only in Poland but also in other EU countries, subject to the local threshold in each country and an overall EU-wide limit of EUR 100,000 in total sales across all EU countries.
Lower health contribution: a 75% base instead of 100%
Under the act of 6 December 2024 amending the Act on Healthcare Services Financed from Public Funds (Journal of Laws 2024, item 1915), the minimum base for the health contribution for entrepreneurs on the tax scale, the flat-rate 19% tax, and the tax card was lowered from 100% to 75% of the minimum wage. This was, however, a temporary solution that applied only for the contribution year from 1 February 2025 to 31 January 2026.
| Period | Health contribution base | Minimum monthly amount |
|---|---|---|
| January 2025 | 100% of minimum wage (PLN 4,242) | PLN 381.78 |
| February 2025 – January 2026 | 75% of minimum wage (PLN 4,666) | PLN 314.96 |
A new definition of building and structure
Since 1 January 2025, an amendment to the Act on Local Taxes and Fees (Journal of Laws 2024, item 1757) has been in force, introducing autonomous definitions of a “building” and a “structure” for real estate tax purposes, independent of the Construction Law. The change implements a ruling of the Constitutional Tribunal of 4 July 2023 (ref. SK 14/21), which found the previous reliance on the Construction Law unconstitutional.
The new act contains a closed list of 28 categories of objects classified as structures (Annex 4 to the act), plus a rule that a storage facility whose main technical parameter is capacity is not a building (such objects are taxed as structures, usually at a higher rate). Because of these changes, the deadline for filing the 2025 real estate tax return was moved from 31 January to 31 March 2025.
Minimum wage in 2025
Under the Council of Ministers’ regulation on the minimum wage and minimum hourly rate for 2025 (Journal of Laws 2024, item 1362), a single rate applied throughout 2025: PLN 4,666 gross per month, with no mid-year increase. The minimum hourly rate for certain civil-law contracts was PLN 30.50 gross.
What has changed since 2026
2026 did not bring as many new tax laws as 2025, but several things described above did change: the VAT exemption threshold rose to PLN 240,000, the cash-basis PIT threshold rose to PLN 2 million, and the health contribution base went back up. On top of that came an entirely new, systemic change: mandatory National e-Invoice System (KSeF), plus a law giving the National Labour Inspectorate the power to administratively reclassify B2B contracts as employment contracts. You’ll find the full, up-to-date overview in our guide to the 2026 tax changes.
FAQ
Did choosing cash-basis PIT in 2025 only apply until the end of that year? No. Choosing the cash method also applies to following years, unless the taxpayer files a written withdrawal by 20 February of the next tax year.
Does the lower health contribution from 2025 still apply? No. The reduced 75%-of-minimum-wage base only applied until 31 January 2026. From February 2026, the base reverted to 100% of the minimum wage.
Does the new building/structure definition also apply to small businesses? Yes. It applies to every real estate tax payer, regardless of company size, who owns buildings, structures or land used for business activity.
Sources and legal basis
- Act of 27 September 2024 amending the Personal Income Tax Act and certain other acts (Journal of Laws 2024, item 1593) — cash-basis PIT.
- Act of 6 December 2024 amending the Act on Healthcare Services Financed from Public Funds (Journal of Laws 2024, item 1915) — health contribution base.
- Act of 29 November 2024 amending the Act on Local Taxes and Fees (Journal of Laws 2024, item 1757) — building and structure definitions.
- Council of Ministers regulation of 2024 on the minimum wage and minimum hourly rate for 2025 (Journal of Laws 2024, item 1362).
- Act of 11 March 2004 on Goods and Services Tax (Journal of Laws 2004, No. 54, item 535), Article 113 — exemption threshold and SME procedure.
Author: MojaFirma Team.
This article is for informational purposes only and does not constitute legal advice. Every situation depends on the specific contract and individual circumstances. If anything about your situation isn’t fully clear, feel free to book a free consultation with our team.
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