Tax card is a lump sum form of taxation. This means that the amount of tax paid does not in any way reflect the income earned by the entity. The amount is fixed and results from a decision of the Head of the Tax Office. This tax solution is addressed only to those entrepreneurs who conduct the type of business activity specified in Article 23 paragraph 1 of the Lump Sum Income Tax Act. It exempts from the obligation to keep accounting books and tax books of income and expenses. Please note that the tax card does not allow joint settlements with a spouse. It is also not possible to settle as a single parent.
What conditions must be met?
Tax card taxation is available to entrepreneurs who meet all of the following conditions:
- they file an application for applying for taxation in a form of a tax card
- they conduct business activity in the territory of Poland
- they conduct one of the types of business activity subject to taxation in the form of a tax card
- do not conduct any other business activity apart from one type of activity indicated in the application to the tax authority
- do not use services of persons not employed on the basis of an employment contract, as well as services of other enterprises or plants, unless these are specialized services, i.e. activities and works
- the spouse of the taxpayer does not conduct business activity in the same scope, the income (revenue) from which is subject to a separate income tax on general principles or a lump sum on registered income
- do not manufacture products subject to excise duty
It should be remembered that a breach by a businessman of any of the above conditions results in the loss of the right to pay lump-sum income tax in the form of a tax card.
Tax card – What does the rate of tax card depend on?
The amount of the calculated tax rate depends on several factors. The most important of these include the type and scope of business activity and the number of employees. In addition, the size of the city (number of inhabitants) in which you run your business plays an important role. The Head of the Tax Office determines the amount of income tax under the tax card for a given year. If you do not like the amount of income tax set, you may resign from this form of taxation.