The flat-rate tax is a simplified form of taxation applied in Poland by certain groups of entrepreneurs. It is an alternative method of income tax settlement characterized by determining the tax liability based on a specified flat rate applied to revenue.

The main features of the flat-rate tax include:

Simplicity:

• Entrepreneurs pay tax on revenue rather than profit, simplifying the settlement process.
• The number of mandatory accounting documents is limited.

Flat Rates:

• Flat rates are established for various business activities.
• They may cover different aspects of business, such as revenue, square meters of premises, the number of employed persons, etc.

No Requirement for Full Accounting:

• Entrepreneurs using the flat-rate tax are not obligated to maintain full accounting but must keep appropriate records.

Limitations and Conditions:

• The flat-rate tax is available to specific groups of entrepreneurs, such as micro-entrepreneurs or farmers.
• There are revenue limits that cannot be exceeded to qualify for this type of taxation.

The flat-rate tax is attractive for smaller businesses that value the simplicity of settlements and want to avoid more complex tax procedures associated with full accounting.