New Tax Limits and Changes in 2025 – What Entrepreneurs Need to Know?

In 2025, significant changes affecting Polish entrepreneurs will come into effect. These include adjustments to the minimum wage, cash PIT, health insurance contributions, and modifications in VAT, CIT, and PIT regulations. Below is a comprehensive guide to these changes and their potential impact on business operations.

Minimum Wage and Hourly Rate in 2025

From 2025, the minimum wage in Poland will rise to 4,666 PLN gross per month, with an hourly rate of 30.50 PLN gross. This increase will significantly impact labor costs for businesses employing workers under employment contracts or civil law agreements.

Changes in VAT Limits

According to Article 2, point 25 of the VAT Act, the following changes in VAT limits will apply from 2025:

  • Intermediary taxpayers (e.g., brokers, investment fund managers, agents): The service fee limit (including VAT) has been reduced from 207,000 PLN to 193,000 PLN for services rendered in 2024.
  • Other taxpayers: The sales value limit (including VAT) 2024 must not exceed 8,569,000 PLN (previously 9,218,000 PLN).

For many businesses, this change will result in losing their small taxpayer status for VAT from January 1, 2025. This will consequently lead to the loss of eligibility for:

  • Cash accounting method
  • Quarterly VAT settlements (except for taxpayers using Estonian CIT, where the sales value limit in 2024 is 17,138,000 PLN).

CIT and PIT Limits for 2025

The status of a small taxpayer for CIT and PIT, which allows access to a preferential 9% CIT rate, will apply if:

  • Revenue for 2024 does not exceed 8,569,000 PLN (including VAT) – based on the exchange rate as of October 1, 2024.
  • Current revenue in 2025 does not exceed 2 million EUR (excluding VAT) – based on the exchange rate as of January 2, 2025.

Depreciation Changes

Small CIT and PIT taxpayers can use one-time depreciation for fixed assets (brand-new) up to 100,000 PLN. Alternatively, they can opt for preferential depreciation up to 50,000 EUR. The one-time depreciation limit for 2025 will be set at 214,000 PLN.

Quarterly lump-sum tax settlements will be available for businesses with revenues up to 856,920 PLN 2025.

Changes in Fiscal Cash Registers

As of 2025, the mandatory integration of payment terminals with cash registers, initially planned under the Polish Deal, has been abolished.

New fiscal cash register exemption rules:

  • The turnover limit for exemption remains at 20,000 PLN.
  • The list of transactions excluded from exemption has been expanded, including:
    • Delivery of CN2404 and 8543 40 classified products (e.g., smokable hemp products).
    • Sale of ethyl alcohol-containing products over 50% strength (e.g., solvents, disinfectants).
    • Sale of solid fuels (coal, briquettes) for heating purposes.
    • Vending machine sales (from 2026).

From 2026, cash register registration will also be required for:

  • Parking services.
  • Services are dispensed through automated systems (e.g., vending machine tickets).

Cash PIT – New Opportunities for Entrepreneurs

Starting January 1, 2025, entrepreneurs will be allowed to settle PIT using the cash method. This means taxes will only be paid upon receiving payment from a client, significantly improving business liquidity. This method applies only to transactions documented by invoices.

Who can benefit from cash PIT?

  • Entrepreneurs starting a sole proprietorship.
  • Sole proprietors whose previous year’s revenue did not exceed 1 million PLN.

Health Insurance Contribution Changes

New health insurance contribution rules will apply from 2025, with further modifications planned for 2026.

Changes in 2025:

  • The annual contribution base cannot be lower than 75% of the minimum wage multiplied by the number of insured months.
  • For taxpayers using a tax card, the contribution base is 75% of the minimum wage on January 1 of the given year.
  • Revenue from the sale of fixed assets will no longer be included in the health contribution base.

Planned Changes for 2026:

  • For tax scale and flat taxpayers: A fixed contribution of 9% of 75% of the minimum wage will apply for entrepreneurs with income up to 1.5 times the average salary in Q4 of the previous year.
  • Entrepreneurs exceeding this income will pay an additional contribution of 4.9% on the excess.
  • For flat taxpayers, paid health contributions will no longer be deductible from income tax.
  • For lump-sum taxpayers: A fixed contribution of 9% of 75% of the minimum wage will apply for those earning up to three times the average salary in Q4 of the previous year.
  • Those exceeding this revenue will be subject to an additional contribution of 3.5% on the excess.
  • Health contributions will no longer be deductible from revenue for tax purposes.
  • For tax card users and cooperating individuals: A 9% contribution on 75% of the minimum wage will apply. This contribution will not be deductible from the tax card.

Conclusion

The tax and regulatory changes taking effect in 2025 will significantly impact businesses in Poland. The increase in the minimum wage will raise labor costs, VAT and CIT threshold adjustments may necessitate changes in tax reporting methods, and new fiscal cash register regulations will require compliance with new obligations. Proper financial planning and adaptation to these regulations will help businesses navigate these challenges effectively in the coming year.

Let’s start
cooperating

Send us a message whether you are thinking about a career change, looking for exceptional talent, or wanting to learn more about running a company in Poland. 

Related Posts