Poland Sejm passes tax law reducing lump-sum revenue limits

The Polish Sejm has passed an amendment to income tax laws that significantly lowers the revenue limit for the lump-sum taxation method (ryczałt). The limit, which was previously set at 2 million euros, will be reduced to 250,000 euros (approximately 1.09 million PLN).

This legislative change is expected to affect tens of thousands of businesses that previously operated under the higher threshold. The amendment was supported by the Civic Coalition, the Left, both factions of the former Poland 2050, and the majority of the Polish People's Party, while the opposition and the Razem party voted against it.

For taxpayers who exceed the limit during the fiscal year, new mechanisms regarding tax rates and transitions to the tax scale will apply. The reform effectively reverses a change implemented on January 1, 2021, which had raised the limit from 250,000 euros to 2 million euros.