The annual income in the PIT- L return. A person running a non-agricultural business will pay income tax on all income earn in their business. When is it possible to choose a flat tax? Entrepreneurs who run a sole proprietorship can change the form of taxation every year. Let's see when to choose a flat tax. You can choose flat tax At the time of registration of the business activity in CEIDG After the end of the tax year, by the th day of the month following the month in which the entrepreneur obtain the first income.|
If you receiv your first income in December, the change can be made no later than December Starting from , the choice of the form philippines photo editor of taxation also affects the principle of settling health insurance contributions. Despite the lack of income, the entrepreneur is oblig to pay contributions to ZUS every month. Postponing the decision to change the form of taxation may result in the obligation to submit declaration corrections to ZUS The declaration on the choice of flat tax is submitt to the head of the tax office or via CEIDG. The choice of this form of taxation also applies to future years, unless the entrepreneur resigns in the next tax year and notifies the tax office of this fact.
When will an entrepreneur not be able to choose flat tax? The Personal Income Tax Act indicates quite precisely when an entrepreneur cannot choose to be tax with a flat tax. The choice of a flat tax is not possible if The entrepreneur will obtain income from the provision of services to a former or current employer These activities will be the same as those perform under an employment or cooperative employment relationship The activities will be perform within one tax year, a tax year should be understood as a calendar year.