In Poland, from January 2024, changes have been made to the regulations regarding unregistered business activity. Taxpayers can conduct such activity, provided that the monthly income from it does not exceed 75% of the minimum wage.
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Unregistered activity, defined in the Entrepreneurs' Law, is attractive for people starting a business. The taxpayer does not have to register it in the Central Register and Information on Economic Activity (CEIDG) and does not pay contributions to ZUS. Income from such activity is taxed according to the tax scale and settled in the annual return. In 2023, with a tax-free amount of 30 thousand PLN, people earning income exclusively from unregistered activity did not pay tax.
From January 2024, the minimum wage has been increased and is currently 4242 PLN, and from July it will increase to 4300 PLN gross. As a result, the income limit from unregistered activity increases to 3181.15 PLN in the first half of the year and 3225 PLN in the second half of the year.
In 2024, the total annual income limit from unregistered activity can reach 38.4 thousand PLN, which is a significant opportunity for people who want to run a small income-generating activity. However, it is important to remember about the monthly limits, which can limit the development of such a business.
Work is underway in the Sejm on a project to replace the monthly income limit with an annual limit, equal to nine times the minimum wage. Such a change would allow for more flexible income management throughout the year, which is particularly beneficial for people whose activity is characterized by uneven income distribution.
Piotr Juszczyk, the main tax advisor at inFakt, emphasizes:
"The project is to introduce an annual, not monthly, income amount, up to which it is possible to conduct unregistered activity. Such a change would be beneficial for taxpayers. Imagine a person who produces goods over a long period of time and then sells them in a short time. As a result, it may turn out that with today's regulations, the monthly limit will be exceeded. If the limit was counted annually, it would not be exceeded. Such a change would certainly contribute to increasing the activity of many people undertaking small income-generating activity".
Such a change in regulations would be particularly significant for creators, craftsmen and other small entrepreneurs, who often work on their products for a long time, and their sales are concentrated in short periods. The annual income limit would allow them to manage their finances more flexibly and avoid the risk of exceeding the monthly limit.
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