Changes in Health Insurance Contributions for Entrepreneurs

Starting in 2025, entrepreneurs taxed under the progressive tax scale or flat-rate PIT will benefit from a reduced minimum health insurance contribution. Instead of being calculated on the full minimum wage, the contribution will be based on 75% of the minimum wage, resulting in a monthly payment of 314.96 PLN.

Additionally, income from the sale of fixed assets will no longer be included in the health insurance contribution calculation.

The proposed legislation is still awaiting approval by the Senate and the President’s signature. If passed, the new rules will take effect on January 1, 2025.

Cash-Based PIT

From 2025, some entrepreneurs will have the option to settle their PIT taxes using the cash method. This means that revenue from business activities will only be recognized when the entrepreneur actually receives payment from the client, potentially delaying the tax liability.

Eligible for cash-based PIT are:

• Sole proprietors (excluding civil and general partnerships) with annual revenue not exceeding 1 million PLN in the previous tax year.
• Entrepreneurs starting a new business.

This method will only apply to business-to-business (B2B) transactions.

However, if a client fails to pay, the entrepreneur will still have to recognize the income after two years from the invoice issuance date or upon business liquidation, whichever comes first.

The new regulations will take effect on January 1, 2025.

VAT Exemption for Small Enterprises Based in Another EU Country

From 2025, small businesses based in other EU member states will be eligible for VAT exemption in Poland if their annual sales do not exceed 200,000 PLN. To qualify, businesses must submit quarterly reports on their turnover in each EU country where they operate.

Entrepreneurs can also opt for voluntary VAT taxation.

These changes are intended to align Polish law with EU regulations, ensuring similar treatment for Polish businesses operating in other EU countries.

The new rules will take effect on January 1, 2025.

Increase in Minimum Wage

Starting in 2025, the minimum gross monthly wage will increase to 4,666 PLN. The minimum hourly rate for civil law contracts will rise to 30.50 PLN gross.

Other employment-related benefits, such as night shift allowances and pay for standby time, will also be adjusted proportionally.

The new rates will be in effect throughout 2025.

Mandatory Electronic Accounting for CIT Taxpayers

From 2025, CIT taxpayers will be required to maintain their accounting records electronically and report financial data to tax authorities using the JPK_CIT structure.

Initially, this obligation will apply to CIT taxpayers whose annual revenue exceeds 50 million EUR, as well as tax capital groups. Certain exceptions will apply, including for businesses using simplified revenue and expense records.

Taxpayers covered by the new regulations will have to submit their 2025 financial data by the end of March 2026 if their fiscal year aligns with the calendar year.

The new rules take effect on January 1, 2025.

Mandatory E-Deliveries from January 2025

As part of the phased introduction of mandatory electronic deliveries, which serve as the digital equivalent of registered mail with acknowledgment of receipt, from January 2025, this requirement will apply to:

• Public trust professionals (lawyers, legal advisers, tax advisors, restructuring advisors, patent attorneys, notaries).
• Entrepreneurs (excluding public entities) registering in the National Court Register (KRS) or the Central Register and Information on Economic Activity (CEIDG).

The obligation takes effect on January 1, 2025.

Mandatory E-Deliveries from April 2025

From April 2025, the e-delivery obligation will be extended to private entities registered in the National Court Register (KRS) before January 1, 2025.

The requirement takes effect on April 1, 2025.

Additional Maternity Leave for Parents of Premature Babies

A new amendment to the Labor Code grants additional maternity leave of up to 8 or 15 weeks for parents of premature babies, depending on the hospitalization period and the gestational week or birth weight of the child.

The law is awaiting the President’s signature. Notably, the maternity benefit for this additional leave will be 100% of the standard benefit base.

The new rules will come into effect three months after the law is officially published.

Christmas Eve Declared a Public Holiday

From 2025, Christmas Eve (December 24) will be officially recognized as a public holiday in Poland.

Other EU countries that recognize Christmas Eve as a public holiday include Bulgaria, Cyprus, Denmark, Estonia, Finland, Ireland, and Lithuania.

The law is awaiting the President’s signature. If approved, the regulation will take effect on February 1, 2025.

Increase in the Full Accounting Obligation Threshold

Starting in 2025, the revenue threshold requiring entrepreneurs to maintain full accounting records will be raised.

Under the new regulations, individuals, partners in civil and general partnerships, and professional partnerships must maintain full accounting records if their net revenue exceeds 2.5 million EUR. The current threshold is 2 million EUR.

This new threshold will apply to fiscal years beginning after December 31, 2024, pending the President’s signature.

The new rules take effect in January 2025.