The Ministry of Finance of Poland is preparing significant changes to the tax system for individual entrepreneurs (JDG). According to the reform project, starting from January 1, 2027, the preferential tax rates under the ryczałt system may become less accessible for the self-employed who work without employees.
The agency believes that tax incentives should stimulate the creation of new jobs, rather than being used as a more advantageous alternative to an employment contract.
Who will be affected by the changes
The new rules will apply to entrepreneurs who:
- operate under the ryczałt system with a rate of 8.5%;
- earn more than 100,000 zlotys per year;
- do not have any employees registered for full-time work under an employment contract (UoP).
For such entrepreneurs, the income tax rate on income exceeding 100,000 zlotys per year will increase from 8.5% to 15%. The first 100,000 zlotys will still be taxed at the current rate.
How the tax amount will change
According to calculations by the Ministry of Finance, with an annual income of:
- 120,000 zlotys, the tax will increase by approximately 1,300 zlotys;
- 150,000 zlotys — by 3,250 zlotys;
- 180,000 zlotys — by 5,200 zlotys;
- 200,000 zlotys — by 6,500 zlotys.
What other changes does the Ministry of Finance propose
In addition to the new rules for the self-employed, the project also includes other tax innovations:
- the income tax rate on rental income from related companies exceeding 100,000 zlotys will increase from 12.5% to 15%;
- to maintain the IP Box incentive with a rate of 5%, additional employee hiring requirements are planned;
- the housing tax relief can only be used again once every three years;
- the period after which property withdrawn from business can be sold without paying tax will be extended.
Is it possible to avoid the increase
The proposed changes allow for the possibility of retaining the preferential rate if the entrepreneur hires at least one employee for full-time work under an employment contract. However, for many small business owners, this may turn out to be less advantageous than paying the increased tax, as salaries and mandatory contributions to ZUS will add to the expenses.
For now, this is a reform project. If the changes are adopted, the new rules will come into effect on January 1, 2027.
