Poland

Cash personal income tax (PIT)

Starting from 2025, a new cash-based PIT method is available to certain entrepreneurs in Poland, upon prior submission of a written statement to the tax office. Under this regime, PIT is paid only after actual receipt of payment for goods or services invoiced to contractors, rather than at the time of issuing the invoice. Eligible entrepreneurs generally include sole proprietors who do not keep full accounting books, who use the tax scale or flat-rate tax (including Innovation Box), or lump-sum tax on recorded revenues, as well as new sole proprietors and those with annual revenues not exceeding 1 million Polish zloty (PLN) (raised to PLN 2 million from 2026). 

Advance payments or partial payments received trigger the PIT obligation. Related costs are deductible when the corresponding invoice payment is made.

This method applies only to transactions with unrelated entrepreneurs; sales of fixed or intangible assets are excluded. If payment for an invoice is not received, revenue recognition and PIT payment are required within two years from the invoice date.

Change in tax reliefs

Preferential annual tax reconciliation of a single parent with a child 

Considering the preferential annual tax reconciliation of a single parent, the annual limit of income earned by an adult child in education increased. The limit is 12 times the social pension value for December of a given year. For December 2025, it amounts to PLN 22,546.92 (limit applicable for the 2025 tax year). For the 2026 tax year, this limit is set at PLN 23,741.88 (12 x 1,978.49).