Tax card - what are the rights and obligations of the taxpayer?


The tax deduction card is one of the simplest forms of taxation. It is mainly characterized by the fact that it does not require bookkeeping, and taxpayers pay a fixed amount of tax, which does not take into account the revenues earned, but only the type and size of the business. However, strictly defined conditions determine whether a given entity can pay with a tax card.

Tax card - for whom?

The tax card, pursuant to Article 23 of the Lump-sum Income Tax Act, may be used by natural persons conducting business activity. A taxpayer who settles accounts on the basis of a tax card may not:

  • simultaneously conduct other non-agricultural economic activity

  • use the services of people who are not employed under a contract of employment (not applicable to specialist services).

and his spouse cannot carry out activities to the same extent.

It should be emphasized that the tax card may only apply to certain types of activity, e.g. : service or production and service activities, in the field of retail trade in food and non-food products, transport, entertainment, educational services, etc. They are listed in the above-mentioned legal act.

Tax card - application and resignation

An entrepreneur who decides to use a tax card is required to submit an application to the competent office according to the place of residence (in the case of natural persons) by January 20 of a given year. To do this, complete form PIT-16. However, if the entrepreneur starts operating during the tax year, he must notify the choice of this form of taxation before starting the activity. The application for the use of a tax card may be attached to the application for entry in the CEiDG. The decision should be expected within a month.

However, if the taxpayer decides to resign from the tax card, he or she may:

  • change the form of taxation by submitting a declaration by January 20 of the following year, to the competent office (according to the place of residence in the case of natural persons) and updating CEIDG-1,

  • after receiving the decision determining the rate amount, give up the use of the tax card, by submitting a relevant declaration to the head of the tax office. The taxpayer has 14 days to do so from the date of delivery of the decision.

After resignation from the tax card, he will be accounted for on general principles, unless he chooses a different form of taxation.

Tax card - rate and settlement

When using this form of taxation, the tax amount is fixed and independent of the income earned. The taxpayer cannot determine this amount himself. The amount of tax is determined by the head of the tax office on the basis of the regulation and depends on:

  • the type and size of the business

  • number of employees (provided that it does not exceed the number of employees specified for the scope of activity)

  • the number of people residing in the locality where the activity is carried out

Example 1.

Ms. Alina runs a hairdressing salon where she provides hairdressing services for women and girls. It employs two employees, and the population in the locality where the activity is conducted does not exceed 5,000. According to the table (item 86, column 4, line 3 of Annex 3), the rate in this case will be PLN 491.00

It is also possible to lower the tax card rate (for this purpose, an appropriate application must be submitted to the head of the office), if the size of the taxpayer's activity, with employment not exceeding one employee, indicates that the specified rate would be too high and in other strictly defined cases specified in art. .27 of the Act on flat-rate income tax on certain revenues earned by natural persons.

You will receive a decision on the rate amount within a month.

Tax card - obligations

When settling on the basis of a tax card, the taxpayer is not obliged to keep accounting - keeping records of revenues and costs. He also does not have to make advance payments for income tax or submit tax returns. However, he is required to issue bills and invoices at the customer's request, on the basis of which the sale of goods or the performance of a service is confirmed, and to keep them for a period of five years.

Additionally, the tax on the tax card must be paid every month, not later than on the 7th day of the month for the previous month. However, in December to December 28 of a given tax year.

After the end of the tax year, the taxpayer is required to submit a PIT-16A declaration, which shows the amount of the health insurance premium paid and deducted from the tax card in individual months, to the competent tax office by 31 January.

Summing up, a fixed amount of tax may be an advantage, but also a disadvantage, because due to the fact that the amount of revenues is not taken into account, the taxpayer is obliged to pay the tax even if the business activity conducted by him causes a loss.