Lump-sum tax on recorded revenue — basics

Lump‑sum tax on recorded revenue is a form where tax is calculated from revenue, without deducting costs. It is a major simplification, but also a risk: if your costs are high, lump‑sum usually becomes unattractive. Below you will find a practical overview: who can choose lump‑sum, how to pick the rate and how the annual settlement works.

What lump‑sum means

With lump‑sum, tax is a percentage of revenue. The actual cost of running the business does not reduce the base. That is why lump‑sum is most suitable for low‑cost activities.

Who can choose lump‑sum

Eligibility depends on:

• a statutory revenue limit in euro (converted using the NBP rate),
• the type of activity (some activities are excluded by law),
• correct classification of services or sales (PKWiU).

If you are unsure about eligibility, verify the PKWiU classification and statutory exclusions.

Lump‑sum rates — what they depend on

The rate depends on the activity type. In practice you will see rates such as 3%, 5.5%, 8.5%, 12%, 14%, 15% and 17%. Choosing the wrong rate can lead to underpayment and interest.

See details in: Lump‑sum rates — how to choose.

Lump‑sum and business costs

The main limitation: costs are not deductible. Therefore, for cost‑heavy businesses (trade, production, subcontracting) lump‑sum is often worse than scale or flat tax.

To compare, see: Lump‑sum vs scale and flat tax.

Lump‑sum, ZUS and health contribution

Lump‑sum does not remove ZUS obligations. The health contribution under lump‑sum is fixed and threshold‑based, depending on annual revenue. It is a different mechanism than 4.9% or 9% for scale/flat tax.

More details: Health contribution on lump‑sum.

Lump‑sum and VAT

Lump‑sum concerns PIT, while VAT status is separate. You can be on lump‑sum and still be a VAT payer if required. See: Lump‑sum vs VAT.

Advances and annual settlement

You pay advances during the year (monthly or quarterly). The annual settlement is done in PIT‑28. See: Lump‑sum — annual settlement and deadlines.

Revenue record

Lump‑sum requires a revenue register. It is simpler than full accounting, but must be accurate. Errors are a common reason for disputes. See: Revenue register on lump‑sum.

When lump‑sum is usually beneficial

Most often when:

• costs are low,
• revenue is stable,
• your rate is favorable,
• you do not need cost deductions.

Run a simulation in the lump‑sum calculator and compare with scale and flat tax.

Common mistakes

• choosing lump‑sum without cost analysis,
• wrong PKWiU classification and rate,
• missing the revenue limit,
• ignoring health contribution impact,
• inaccurate revenue records.

Checklist before choosing lump‑sum

• verify the current revenue limit,
• confirm your PKWiU rate,
• compare against scale and flat tax,
• include health contribution and ZUS,
• keep a proper revenue record.

Legal sources

• Lump‑sum income tax act (ISAP)
• podatki.gov.pl — lump‑sum taxation
• ZUS — information for entrepreneurs