Deregulation

How it was?

The cash-basis PIT method was available only to a narrow group of entrepreneurs.

Sole proprietors could choose the cash-basis PIT method — paying income tax only once payment is actually received — but only if their revenue in the previous year did not exceed €230,000 (PLN 1 million). This limit excluded a large share of small and medium-sized businesses from a method designed specifically to ease their tax burden.

 

What has changed?

The income threshold for using the cash-basis method has been raised.

As of 1 January 2026, the threshold for choosing the cash-basis PIT method has been raised from €230,000 to €465,000 (from PLN 1 million to PLN 2 million) in annual revenue.