Changing the form of taxation after company registration

When establishing a business, the entrepreneur is obliged to indicate the form of income tax settlement of his choice. However, it may happen that, despite the already declared form, it will decide on another option - more convenient, more profitable, etc. Is it possible to change the form of taxation after registering a company?

Changing the form of taxation - general provisions

The selected form of taxation is indicated by the entrepreneur when registering the business - he uses the CEIDG-1 form for this. Such notification is also sufficient from the point of view of the provisions of the Personal Income Tax Act. The form must be submitted at the latest on the day the business is established.

From that moment on, the newly minted entrepreneur is bound by the strict provisions of the tax law. According to them, changes in the form of income taxation will only be possible with the advent of a new tax year. For this purpose, it will be necessary to submit a written notification to the tax office by January 20 of the new tax year.

Changing the form of taxation after company registration

However, if you take a closer look at the provisions of the aforementioned PIT Act, the choice of the form of taxation should be made no later than on the date of obtaining the first operating income (Article 9a (2)). As you know, in practice, the date of setting up a business does not necessarily coincide with the date of the first receipt.

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Thus, the new entrepreneur still has a solution if, after registering the company, he decides to change the form of taxation. Before obtaining the first income, he may submit to the head of the tax office a notification on the choice of the form of taxation for a given tax year. It is worth remembering to first make sure whether a given form is acceptable for a specific business profile.

As you can see, if there is a difference of even a few days between the date of registration of the company and the date of obtaining the first income, the entrepreneur has the option to change the form of taxation. It is only necessary to complete the necessary formalities with the tax office - that is, to submit a notification to its head.