How to File PIT Tax Return - Guide for Entrepreneurs

Every sole proprietor in Poland must file an annual personal income tax return (PIT). Depending on the tax form you selected, you will use a different form - PIT-36, PIT-36L, or PIT-28. This guide explains which form applies to you, what deductions you can claim, and how to avoid the most common mistakes.

Which PIT Form Do You Need?

Your form depends on the tax method you selected when you registered your business or changed at the beginning of the tax year:

PIT-36 - Tax Scale (Progressive)

You file this form if you are taxed under the general rules (rates of 12% and 32%). This form allows you to:

  • Use the tax-free allowance (PLN 30,000)
  • File jointly with your spouse
  • Apply most available tax credits and deductions
  • Combine income from multiple sources (e.g., business + employment)

PIT-36 is most advantageous for those with income below the first tax bracket, especially if you want to take advantage of tax credits.

PIT-36L - Flat Tax

You file this form if you chose the 19% flat tax rate. Key characteristics:

  • A fixed 19% rate regardless of income level
  • No joint filing with a spouse
  • Limited catalog of deductions (you can deduct ZUS contributions, payment terminal credit, R&D relief, among others)
  • No tax-free allowance

The flat tax becomes beneficial when your annual income exceeds approximately PLN 200,000 - below that threshold, the tax scale is usually more favorable. Check exact calculations using the tax calculators.

PIT-28 - Lump-Sum Tax on Registered Revenue

You file this form if you chose the lump-sum tax. Key features:

  • Tax calculated on revenue, not income
  • You cannot deduct business expenses
  • Rates range from 2% to 17% depending on the type of activity
  • Limited tax deductions

For more on comparing lump-sum with the tax scale, read Lump Sum vs Tax Scale.

Filing Deadlines

Key dates to remember:

  • PIT-36 and PIT-36L - due by April 30 of the year following the tax year
  • PIT-28 - due by April 30 of the year following the tax year (changed from the end of February starting in 2023)
  • Tax advances - paid monthly by the 20th of the month following the month in which income was earned (or quarterly if you selected that option)

If a deadline falls on a non-business day, it shifts to the next business day.

How to File Your PIT Electronically

Via the Twój e-PIT Service

The Ministry of Finance prepares a pre-filled return in the Twój e-PIT service (available at podatki.gov.pl). As a business owner, however, you need to manually complete the business-related sections - the system does not have full information about your revenue and expenses.

Via the e-Deklaracje System

You can download an interactive PDF form from podatki.gov.pl, complete it, and submit it electronically, signing with your Trusted Profile (Profil Zaufany) or authorization data (PESEL and previous year's revenue).

Via Accounting Software

Most online bookkeeping applications (e.g., wFirma, inFakt, Fakturownia) allow you to generate and send your PIT return directly from the application. This is the most convenient option since data is pulled automatically from your bookkeeping records.

Tax Deductions Available to Entrepreneurs

Deductions Under the Tax Scale (PIT-36)

  • Child tax credit - deduction from tax: PLN 1,112.04 for the first and second child, more for additional children
  • Internet deduction - up to PLN 760 deducted from income (only for the first 2 years of use)
  • Rehabilitation deduction - expenses for rehabilitation purposes
  • Thermal modernization credit - up to PLN 53,000 for thermal modernization of a residential building
  • Charitable donations - to public benefit organizations, religious institutions, blood donation (up to 6% of income)
  • ZUS contributions - social contributions are deducted from income; health contribution is partially deductible from tax or income

Deductions Under the Flat Tax (PIT-36L)

The catalog is narrower, but you can deduct:

  • Social insurance contributions
  • Part of the health insurance contribution (up to a limit)
  • Payment terminal credit
  • R&D tax relief (research and development)
  • IP Box relief (5% tax on income from qualified intellectual property rights)

Deductions Under the Lump-Sum Tax (PIT-28)

  • Social insurance contributions (deducted from revenue)
  • Part of the health insurance contribution (50%, up to a limit)
  • Internet deduction (for 2 years)
  • Charitable donations

Tax Advances - How to Calculate Them

Throughout the year, you are required to pay advance tax payments. Here is how it works:

Under the Tax Scale and Flat Tax

  1. Calculate your cumulative income from the beginning of the year (revenue minus expenses)
  2. Deduct social ZUS contributions
  3. Apply the appropriate tax rate
  4. From the calculated tax, subtract the tax-reducing amount (tax scale only) and health contribution (to the extent allowed)
  5. Subtract the sum of advances paid in previous months
  6. The difference is your advance payment for that month

Under the Lump-Sum Tax

  1. Calculate your revenue for the given month
  2. Deduct ZUS contributions
  3. Apply the applicable lump-sum rate
  4. Pay the calculated amount by the 20th of the following month

Quarterly Advances

Small taxpayers (revenue up to EUR 2 million) and those starting a new business can opt for quarterly advances - paid by the 20th of the month following the end of each quarter.

Common Mistakes in PIT Filing

1. Failing to Include All Income Sources

If you have income beyond your business (e.g., freelance contracts, rental income), you must report it in your return. PIT-36 is designed to combine income from various sources.

2. Incorrect Health Insurance Deduction

The rules for deducting health insurance contributions changed in 2022 and differ for each tax form. Under the tax scale, the health contribution is no longer deductible. Under the flat tax and lump-sum tax, only a portion can be deducted.

3. Lack of Expense Documentation

The tax office can challenge any expense for which you lack a proper invoice or other proof. Retain all documents for 5 years from the end of the year in which you filed the return.

4. Missing Deadlines

Late filing of your annual return or advance payments results in penalty interest, and in extreme cases, a fine for a fiscal offense. Set reminders for all key dates.

Correcting Your PIT Return

If you discover an error after filing, you can submit a correction. Simply fill out the form again with the correct data and mark it as a correction. Corrections can be filed for up to 5 years from the end of the year in which the tax obligation arose.

It is advisable to attach a letter explaining the reason for the correction - while not formally required, it helps in the event of a tax audit.

Summary

Filing your PIT as a business owner does not have to be complicated if you maintain accurate bookkeeping throughout the year. The key principles are:

  • Select the correct form matching your tax method
  • Pay tax advances on time throughout the year
  • Take advantage of all applicable deductions
  • File your annual return by April 30
  • Retain documentation for at least 5 years

If you are unsure which tax form is best for your situation, use the tax calculators to compare the real tax burden under different scenarios.