Lump‑sum — annual settlement

Annual lump‑sum settlement is the moment you summarize the year and confirm whether advances were correct. The key form is PIT‑28 and accurate revenue records. Below is a practical, no‑frills guide.

For a full picture, see Lump‑sum — basics and the Revenue register.

What annual settlement covers

• total annual revenue,
• assigning revenue to correct rates,
• verifying advances,
• health‑contribution settlement (if applicable).

PIT‑28 basics

PIT‑28 is the form for lump‑sum. You file it within the statutory deadline and base it on your revenue records. Incomplete records are the most common source of mistakes.

How to prepare for PIT‑28

1. Organize the revenue register.
2. Split revenue by rates.
3. Verify rates against PKWiU.
4. Check health‑contribution impact.
5. Prepare data for the form.

Documents and data you need

Typically:

• annual revenue register,
• revenue split by rates,
• advance payments summary,
• health‑contribution information.

Common mistakes

• not splitting revenue by rates,
• incomplete revenue records,
• incorrect rate selection,
• ignoring health‑contribution settlement.

Short timeline

• Ongoing: keep the revenue register.
• Before year‑end: verify rate assignment.
• After year‑end: summarize revenue and advances.
• Before the deadline: submit PIT‑28.

When to compare with other forms

If the annual settlement shows low profitability, consider switching next year. Compare: Lump‑sum vs scale and flat tax.

Annual‑settlement checklist

• revenue register complete,
• rates verified with PKWiU,
• advances correctly calculated,
• health contribution included,
• PIT‑28 prepared and filed on time.

Legal sources

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