EXLIBRA 30.12.2018

The 2018 package of amendments for small and medium-sized enterprises. Nearly 50 simplifications for companies. Wil they make life easier for Polish businessmen?

A package of amendments concerning small and medium-sized enterprises will come in force at the start of 2019. New regulations will make it easier to start a business for young entrepreneurs, facilitate formalities,  collect debts faster, or build a company facility without unnecessary paperwork. What will be included in the package?


Possibility of counting spouse’s value of work into costs of revenue

After the amendment of provisions, a business owner will include the remuneration paid to spouse in costs of revenue. A taxpayer who employs a spouse will be treated by exchequer as a taxpayer who employs a person from outside the close family. The amendment will bring benefits for small and micro businesses, which often are family run enterprises.


Repealing the burden of recurrent OHS trainings

Repealing the burden will involve the lightest physical work and office workers as well. Approximately 6 million of workers will be released from the obligation of recurrent trainings. The employers will no longer have to pay for additional trainings, which will bring the companies savings.


One-off loss settlement for sums up to PLN 5 million

The amendment will allow for one-off settlements of tax losses of up to PLN 5 million. Only above this amount they will be settled on foregoing principles. The amendment will have positive impact on company’s accounting liquidity. One-off settlement will also save the paperwork since the loss is settled only one time, and not for several consecutive years.


Increasing the threshold for small taxpayer

The new package of amendments will increase the  threshold amount for sales revenues from PLN 1.2 million to PLN 2 million, which entitles to status of small taxpayer. In 2019 small taxpayers will also be able to make use of lower corporate income tax (CIT) rate. The status of a small taxpayer doesn’t require the necessity of allocation of costs for the whole depreciation period. Such taxpayer has the possibility of applying one-off depreciation, if it does not exceed the sum of EUR 50,000.


Unification of tax declaration forms for council taxes

The act provides for unification of tax declaration forms (property tax or forestry tax) and enables electronic tax returns. Nowadays forms are very diverse- they are compiled by local governments. This is an impediment in paying local taxes for those business owners, who hold real property in more than one municipality. .


In addition, the package includes:

  • Shortening the mandatory storage period for financial statement to 5 years.
  • Shortening of the term entitling the creditor to make use of tax credit for bad VAT debts from 150 to 90 days.
  • Amendments in private limited company- adopting every resolution by circulation by partners at a distance will now be possible. Rules, for the refund of advances charged by partners on account of dividend, will be implemented.
  • Tax exemption of sums of compensations paid out for restoration of damaged asset. The exemption will involve each fixed asset except for passenger cars.
  • Clear-cut circumscription of legal effects of action performed by unauthorized person.


The aforesaid solutions will take effect from 1 January 2019. It is already known today that another extension of the benefits package for small and medium-sized enterprises will be implemented in 2020. The package of amendments will certainly facilitate the activities of entrepreneurs already running a business, and encourage the business people, who due to the excessive and complicated paperwork, hesitate to enter their own business, to start a their own businesses.