Economic activity - the most important information


Economic activity has been generally defined in the Polish legal system. Apart from that, however, many acts contain an indication of what forms of economic activity may be included in it.

Economic activity - what is it?

According to Art. 3 of the Entrepreneurs' Law Act, we can define economic activity as an organized gainful activity, performed on our own behalf and on a continuous basis. The activity performed by a natural person, whose income due from this activity does not exceed 50% of the minimum wage in any month and who has not performed any economic activity in the last 60 months, is not an economic activity.

This concept is explained slightly differently by the Personal Income Tax Act. According to Art. 5a point 6 of this legal act, economic activity is gainful activity - manufacturing, construction and service activities, as well as activity consisting in searching for, identifying and extracting minerals from deposits. The use of intangible things and assets is also taken into account. Moreover, it should be conducted in a continuous and organized manner, on its own behalf, no matter what the results.

In art. 15 sec. 2 of the Value Added Tax Act, we can find a provision that economic activity is all activities of producers, service providers, traders, farmers and entities acquiring natural resources. It also includes the activities of freelance professionals, also when they were undertaken once, although they were intended to be performed at a constant frequency. In this approach, it is also important to define the activity to use goods, intangible assets on a continuous basis in order to make a profit.

Economic activity is also defined in the tax ordinance, specifically in art. 3 point 9. It says that an economic activity is defined as an activity defined in this way in the Act on the freedom of economic activity (Entrepreneurs' rights), liberal professions and other gainful activities performed on one's own behalf and on one's own or someone else's account, even if the definitions contained in other acts do not classify such activities as conducting business activity.

The act on the social insurance system also defines economic activity. According to Art. 8 sec. 6 a person who conducts business activity is considered to be:

  • an entity that conducts business within the meaning of the Entrepreneurs' Law,

  • artist and creator,

  • an entity operating in a liberal profession,

  • an entity running non-public schools or schools on the basis of the Act on the Education System,

  • a partner in a partnership, limited partnership, general partnership or sole proprietorships

Business objectives

The goals of economic activity can be divided into internal and external goals. The latter are primarily activities related to running a business and its maintenance and imposed on entrepreneurs, such as:

  • payment of taxes and other public levies,

  • payment of insurance premiums to ZUS,

  • creating GDP.

Internal goals, on the other hand, are closely related to the specifics of the business and the industry and are individually defined by the entrepreneur.

Economic activity and PKD codes

Setting up a business involves selecting PKD codes for it, i.e. a designation indicating what the enterprise does exactly. They are included in the Polish Classification of Activities, and the entrepreneur is obliged to indicate the appropriate code on the CEIDG-1 form.

One application contains 9 boxes for entering the marking, but if this is not enough, you can include additional codes in the CEIDG-RD Annex. Polish law does not provide for limits on the codes reported on the form, which leaves entrepreneurs a lot of freedom in indicating the industries in which they will operate. However, it is worth paying attention to the first code entered - it indicates the basic area of ​​the company's activities. To more accurately match the designation, you can use the PKD code search engine.

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