The suspension of economic activity and the change in the form of taxation

With the suspension of business activity, there comes a period in which the taxpayer's situation improves or the taxpayer simply decided to continue running the business. It is then possible to suspend the enterprise by submitting an appropriate application. However, it should be remembered that in this situation the taxpayer cannot change the form of settling accounts with the tax office.

Resumption of business activity

Pursuant to the applicable provisions of the Act on the freedom of economic activity, an entrepreneur may suspend its performance for a period from 30 days to 24 months. Provided that it does not employ any employees at that time. Suspension and resumption of economic activity takes place at the request of the entrepreneur. It is important that the suspension of the company should take place after the previously indicated suspension period. Otherwise, after this deadline, the activity may be closed ex officio by way of an administrative decision (deletion from the Central Register of Activity and Information on Economic Activity).

Free resumption of business activity is made using the CEIDG-1 application, indicating the specific date of its suspension, which may be earlier than the date of submission of the form. The choice of the method of submitting the application rests with the taxpayer, who can submit it online, in person at any municipal office or send it by registered mail with a signature certified by a notary.

Changing the form of taxation

The only possibility of changing the form of taxation through which the taxpayer makes settlements with the tax office exists once a year after the end of the tax year, i.e. until January 20 of the following year. After resuming economic activity, the taxpayer should take into account all revenues, even those obtained during the suspension period, for example from the sale of fixed assets, when paying the first income tax advance. VAT taxpayers should also start filing VAT returns for the first month or quarter in which business resumed.

It is also worth mentioning that regardless of the fact that information about the suspension of business activity is automatically transferred to ZUS, GUS and the tax office, the taxpayer must submit a ZUS DRA form with the declared amount of contributions to the Social Insurance Institution. This must be done by the 10th day of the month following the resumption of the business and all premiums must be paid.

In addition, if the entrepreneur plans to suspend the company again, he may only hire employees on the basis of a specific-task, mandate or fixed-term employment contract. Permanent employment excludes the taxpayer from the right to suspend business activity.