Poland: Bill introducing option for small enterprises to elect cash method

The bill is expected to be passed by the Council of Ministers in Q2.

The bill is expected to be passed by the Council of Ministers in Q2.

The Council of Ministers will consider a bill introducing the option for businesses with revenue in the previous tax year not in excess of PLN 500k to elect the cash method in accounting for costs and revenues (referred to as “cash PIT”).

Taxpayers adopting cash PIT only pay tax when they are actually paid for the goods delivered or services performed and deduct costs on the date of payment for goods received or services performed. After two years, counting from the date of issuing an invoice, making a receipt, or entering into an agreement, a taxpayer is required to recognize revenue from business activity, even if they are not paid by their contractor for the goods delivered or services performed. This method of making settlements will apply only to business-to-business (B2B) transactions.

The bill is expected to be passed by the Council of Ministers in Q2 2024.

Read a March 2024 report prepared by the KPMG member firm in Poland



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