Suspension of activity and keeping the KPiR

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I am an active VAT taxpayer, I run a sole proprietorship (KPiR) and I do not employ any employees. Due to poor health, I plan to suspend my activities for the entire year. Do I have to keep a tax revenue and expense ledger during the suspension of my activity?

Remigiusz, Wołów

 

An entrepreneur who does not employ employees under an employment contract has the option to suspend his activity. In order to suspend the activity, a properly completed CEIDG-1 application should be submitted to the city or commune office (it can also be done electronically). The suspension period must last a minimum of 30 days and during this period there is no obligation to pay income tax advances.

However, it should be remembered that the suspension of activity does not release the entrepreneur from the obligation to keep a tax book of revenues and expenses. During the suspension period, the entrepreneur may not perform activities related to the performance of economic activity, however, he may perform a number of other activities that may require recording in the KPiR.

Such activities include, among others:

  • sale of fixed assets or equipment,

  • incurring fixed expenses aimed at preserving or securing sources of income (e.g. subscription for a company telephone, renting an office / warehouse, fees due to concluded lease agreements).

The KPiR also records interest income from a company bank account, company deposits, etc.

To sum up, suspending your activity for one year does not release you from the obligation to keep the KPiR and make appropriate records in the event of the above economic events.

Please also remember that income and expenses from the suspension period should only be settled in the annual tax return if you do not resume your business before the end of the year. Possible income tax during the suspension period will arise from this return.