PIT-16Z form with CEIDG application

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The PIT-16Z declaration can already be attached to the CEIDG application - it will be a convenience for people who settle with a tax card, who report liquidation of business activity or changes contained in the PIT-16 application.

Tax card - settlement rules and forms

PIT-16 and PIT-16Z declarations apply only to taxpayers using (reporting) a tax card as a form of taxation. Taxation in the form of a tax card is a preference for a small group of entrepreneurs running the types of economic activity specified in the regulations, such as:

  • selling home meals;
  • giving lessons by the hour;
  • home care for children and the sick;
  • veterinary and medical services.

For all types of activity, specific tax rates are assigned, announced for each tax year and specified in amount by the Minister of Finance in the notice on tax card rates.

When using a tax card, you may not use the services of people who are not employed by yourself under an employment contract or the services of other enterprises and plants, with the exception of specialist services. The activity must be conducted only in the territory of Poland, the spouse cannot have a similar activity, and the entrepreneur himself cannot conduct other non-agricultural economic activity or produce goods subject to excise duty.

The application for a tax card should be submitted on the PIT-16 form and submitted to the tax office or attached to the CEIDG-1 application when registering a business.

PIT-16Z declaration - what does it concern?

The PIT-16Z declaration is information about changes in the application for the application of a tax card or liquidation of business activity.

An entrepreneur using a tax card as a form of taxation should report the following changes to the tax office:

  • resulting in the loss of the right to the settlement conditions under the tax card;
  • affecting the amount of income tax in the form of a tax card.

The taxpayer is also required to notify the tax office of the liquidation of business activity.

Any changes affecting the amount of income tax paid on the basis of a tax card and the decision to liquidate the company should be reported using the PIT-16Z declaration or in electronic form via the online form, which was posted on the Tax Portal.

The loss of the right to use a tax card as a form of taxation of revenues obtained from business activity may occur, for example, as a result of:
registration of other business activity by an entrepreneur;

  • registration of business activity by the spouse to the same extent as the taxpayer settling accounts under the tax card;
  • exceeding the employment limit.

The factors influencing the amount of tax payable by entrepreneurs using a tax card as a form of taxation include:

  • number of people employed;
  • place of business.

The PIT-16Z form should be submitted within seven days from the occurrence of the circumstances causing the changes.

PIT-16Z form with CEIDG application - changes

Pursuant to the Act on Amending Certain Acts, in order to reduce regulatory burdens (amendment carried out under the so-called Friendly Law Package), taxpayers may attach the PIT-16Z declaration to the CEIDG-1 application submitted when updating the data affecting the change in the amount of income tax or liquidation of the business.

Previously, a person who settled a business activity on the basis of a tax card, in which there were changes significant from the point of view of the amount of income tax, or who decided to terminate the business, had to submit the CEIDG-1 application and the PIT-16Z declaration separately.

The purpose of the introduced changes is to reduce formalities and facilitate the process of submitting changes to the application for the application of a tax card or liquidation of business activity. Start a free 30-day trial period with no strings attached!

Example 1.

Ms Regina runs a hairdressing salon in the form of a sole proprietorship and settles accounts on the basis of a tax card. At the end of 2020, she decided to liquidate the company and work in another plant under an employment contract. What declarations should Ms Regina make in order to liquidate her business?

When liquidating a sole proprietorship, Ms Regina is obliged to complete and submit the CEIDG-1 application to the city or commune office. Thanks to the introduced changes limiting the formalities of entrepreneurs, Ms Regina can attach the PIT-16Z declaration to the CEIDG-1 application - there is no need to submit it separately.

Summary

The possibility of attaching the PIT-16Z declaration - information about changes in the application for the application of a tax card or liquidation of business activity to the CEIDG application - is good news for entrepreneurs who settle accounts on the basis of a tax card. The changes limiting the number of formalities are positive for taxpayers. The fewer documents they are required to draw up and submit to appropriate institutions, the more time they have to run their business.