◾What do you need to know?
What is a tax card?
A tax deduction card is a form of taxation that includes the payment of a fixed amount of tax, regardless of the amount of income actually received. This form of taxation is especially useful for small companies that have few employees or are organized in small cities. Remember that the amount of the tax card increases as employment increases and the size of the city in which you work. Card taxation is available only to certain entrepreneurs and is available only upon your request.
Who can choose a tax card?
If you manage production / services, food, transport, entertainment, sell food at home, work freelance, provide medical services, home care for children and patients or educational services consisting in giving lessons by the hour, then you can apply for taxation in the form of a tax card. Remember that in carrying out entrepreneurial activities you cannot use the services of persons not hired by you under an employment contract and the services of other enterprises if they are not specialized. You do not have the right to engage in any other non-agricultural activity other than the type of activity indicated in the application, or to produce goods subject to excise duty. In addition, your spouse cannot conduct business in the same way as you. The economic activities specified in the application should be carried out only in Poland.
Tax card rates are indicated by the Minister of Finance in the notification of tax card rates and are announced for each tax year.
◾When should you do this?
Until January 20 of the tax year, and if you start a business – before it starts.
◾Where can you do this?
The service can be performed by tax authorities.
◾What to do step by step?
1. Submit an application in the form of PIT-16
Apply for a tax card in the form of PIT-16 and send it to the tax office.
You can also attach the form:
• to CEIDG-1 application (upon registration of a business)
• in CEIDG-1 update application (when changing data)
Important! If you have a civil partnership, it is enough for one of the partners to apply for a tax card.
1. Application for the application of taxation in the form of a tax card (PIT-16)
You can send an application for a tax card by mail or personally deliver it to the tax office. You can also send an application in electronic form through the online form available on the tax portal. You can sign the form:
• electronic signature of the user on the tax portal
• qualified electronic signature.
Attention! You do not have the right to sign the application with a trusted profile and send it through the ePUAP platform.
You are allowed to send the CEIDG-1 form by mail or personally deliver it to the city or municipal office. If you have a trusted profile or qualified signature, you can send the CEIDG-1 form electronically.
Until January 20 of the tax year, and if you start a business – before its launch.
2. You will receive a decision from the tax office
In the decision, the office will determine the amount of tax that you will pay. If you work as a company, the office will list all partners in the solution.
If the office finds that you do not meet the conditions for using the tax card, it will take a negative decision.
In this case, you must pay:
1) a lump sum allowance for registered income, or
2) income tax on general principles.
You can refuse taxation in the form of a tax card. You have 14 days from the day you receive the decision determining the amount of the tax card, or the decision to change the amount of this tax.
Attention! If you submit data incompatible with the facts in the application, and these data affect the provision of taxation in the form of a tax card or lead to an underestimation of the amount of this tax, the tax service will determine the validity period of the decision on the tax card.
1. The decision to determine the amount of income tax in the form of a tax card
If you have an account on the tax portal, and you agreed to deliver electronic documents through this portal, you will receive a decision about your account.
You will receive a decision within a month.
◾How much will you pay?
The service is free. You can pay additional fees only if you provide this service through a lawyer (information about the power of attorney).
◾How long will you wait?
You will receive a decision within a month.
◾How can you appeal?
You can appeal the decision within 14 days with the director of the tax office. On the appeal, describe what you disagree with, what you expect, and what evidence you have.
◾It is worth knowing
You need to report changes to the tax office:
• which leads to a loss of conditions for using a tax card (for example, your spouse will start working in the same business area)
• impact on the amount of income tax in the form of a tax card (for example, number of employees, place of work)
Be sure to inform the office about the liquidation of your business.
Do this in the form of PIT-16Z / PIT-16ZS or electronically through the online form available on the tax portal.
Continued tax card taxation
You can still use your tax card if by January 20 of the following tax year:
• you do not report liquidation of the business
• you will not choose another form of taxation
• you do not notify the head of the tax office in writing of the dismissal in a tax form in the form of a tax card
You can reduce the income tax in the form of a tax card by the amount of the insurance premium. After the tax year expires, until January 31, file an annual declaration (PIT-16A) with the tax office on the amount of the health insurance premium paid and deducted from the tax card in certain months.
When to pay tax?
Make tax payments monthly until the 7th day of each month for the previous month and for the period from December to December 28 of this year.
Your rights and obligations
You are exempted from bookkeeping, filing tax returns, and making advance payments. Instead, you should issue invoices and invoices at the request of the client indicating the sale of the product, product or service and keep copies of these invoices in numbering for five tax years from the end of the year in which you issue the invoice or invoice.