Tax card

Service-Tax

Settlement on the basis of a "tax card" exempts you from the obligation to keep accounting books, make advance payments for income tax and submit tax returns.

What exactly is a "tax deduction card" and when can I use it?

The condition for the taxpayer to be taxed in the form of a tax card is, first of all, the submission of an appropriate application to the competent tax office - no later than January 20 of the current year - and an indication of the intention to conduct a type of business activity included in one of the categories indicated in the table of monthly income tax rates. , constituting "Annex to the Act on flat-rate income tax on certain revenues earned by natural persons". Taxpayers may be taxed in the form of a tax card also when they conduct business activities in the form of a civil partnership, provided that the total number of partners and employees does not exceed the employment level specified in the table of monthly income tax rates. If the application for the use of a tax card is granted, the head of the tax office issues a decision establishing the amount of income tax separately for each tax year. If the activity is conducted in the form of a partnership, all partners are listed in this decision. If, on the other hand, the head of the tax office does not find grounds for using a tax card, then the taxpayer is obliged to pay either a lump sum on recorded revenues, if it meets its conditions, or the income tax on general terms, i.e. on the basis of the Personal Income Tax Act.

The amount of tax paid

The amount of income tax in the form of a tax card is determined according to the monthly rates specified in the table or within the limits of these rates, taking into account all the circumstances that affect the size of the business. In the event of employment by an entrepreneur conducting service and production activities listed in the tax card, e.g. locksmith or upholstery services, the tax rate is increased by a factor that decreases with the increase in the number of people employed by the entrepreneur. For the month in which the entrepreneur hired the first employee, the tax card rate is increased by 40% of the rate specified for the activity conducted without employing employees, and after hiring additional employees, the rate is increased accordingly:

  • by 30% of the rate specified for the activity conducted with the employment of one employee,
  • by 20% of the rate specified for the activity conducted with the employment of two employees,
  • by 15% of the rate specified for the activity conducted with the employment of three employees, and
  • by 10% of the rate specified for activities carried out with four and five employees.

Who can settle accounts on the basis of the "tax card"?

Lump-sum income tax in the form of a tax card may be paid by taxpayers conducting business activity:

  • service or manufacturing and service,
  • service in the field of retail trade in food, beverages, tobacco and flowers, with the exception of beverages with an alcohol content above 1.5%
  • service in the field of retail trade in non-food products, with the exception of trade in motor fuels, means of motor transport, parts and accessories for motor vehicles, agricultural tractors and motorcycles, and with the exception of trade in non-food products covered by the license,
  • gastronomic - if there is no sale of beverages with an alcohol content above 1.5%
  • in the field of transport services performed with the use of one vehicle
  • in the field of entertainment services
  • for the sale of home meals in apartments, if the sale of beverages with an alcohol content above 1.5% is not conducted
  • in the liberal professions, consisting in the provision of services in the field of human health protection
  • in professional professions, consisting in the provision of veterinary services by veterinarians,
  • in the field of home care for children and the sick
  • in the field of educational services, consisting in giving lessons by the hour

Nevertheless, taxpayers who would like to be subject to taxation in the form of a tax card may not use the work of persons not employed by them under an employment contract or the services of other enterprises and establishments, except for specialized services. They cannot also conduct other, non-agricultural economic activity. Another contraindication is the production of goods subject to excise duty and running a business outside the country. The legislator also excludes the possibility for the taxpayer's spouse to conduct activities to the same extent.

A significant facilitation for entrepreneurs taxed with a flat-rate income tax in the form of a tax card is the fact that in such a situation they are exempt from the obligation to keep accounting books, submit tax returns or make advance payments for income tax. Nevertheless, at the request of the client, they are required to issue bills and to keep copies of these bills for a period of 5 years. Moreover, all entrepreneurs who would like to be taxed in the form of a tax card must simultaneously meet a number of additional conditions described in individual annexes to the Act on flat-rate income tax on certain revenues generated by natural persons.