Changes in PIT from January 1, 2020 as regards the „small taxpayer”, collection of advance payments and determination of income from participation after the death of the spouse of the entrepreneur

The limit for the „small taxpayer” has been increased. From January 1, 2020 it will be a taxpayer whose value of sales revenue including VAT will amount to EUR 2,000,000.00, i. e. PLN 8,747,000 (according to the exchange rate of October 1, 2019, PLN 4.3734, table no. 190/A/NBP/2019).

The method of collecting advance payments has also been changed. And so, advance payments for the month in which the taxpayer’s income earned from work, etc. since the beginning of the year in this company exceeded the amount constituting the upper limit of the first bracket of the scale – 17% from the part of income obtained in this month that did not exceed this amount and 32% from the surplus over the amount constituting the upper limit of the first bracket of the scale. Moreover, the amendment provides for the possibility for the employer to take into account a written declaration of the taxpayer not to apply a reduction of 1/12th of the amount reducing the tax from the month in which he received the declaration, or from the following month, if in the month in which he received the declaration, he was not able to collect the advance without such reduction.

Another change concerns the taxation of income from the shareholding of the deceased spouse from a company which is not a legal person, etc. Until now, the principle has been adopted that these revenues were combined with other sources of income taxed according to the tax scale. From the new year, these provisions will not apply for the period when the business of the deceased spouse of the taxpayer is run by a temporary „successor” representative. In such a case, all income from running the business will be subject to taxation only by the surviving spouse, excluding the rights to a share in the profit of purchasers of the deceased spouse’s share.