Income Tax Advances for a Sole Proprietorship (JDG) in Poland in 2026

Tax Scale

The advance is calculated cumulatively on income earned since the beginning of the year:

1. revenue is reduced by costs,
2. permitted deductions are taken into account,
3. tax is calculated at the 12% and 32% rates,
4. the tax-reducing amount of PLN 3,600 is deducted,
5. advances due for earlier periods are deducted.

PLN 3,600 is the annual tax-reducing amount. In a cumulative calculation, it does not have to be mechanically divided into PLN 300 for each month.

The 32% threshold is PLN 120,000 of taxable income. Only the excess is taxed at 32%, not all income after the threshold is crossed.

Flat Tax

The tax is 19% of income. There is no tax-free allowance or tax-reducing amount.

Paid health contributions may reduce income or be recognized as a cost up to the combined statutory limit of PLN 14,100 in 2026. The limit applies to the tax treatment of the contribution, not to the contribution's amount.

Advances under the tax scale and flat tax are generally paid by the 20th day of the month for the previous month.

Lump-Sum Tax

Under lump-sum tax, tax is calculated on revenue reduced by permitted deductions. Payment is due:

• monthly — by the 20th day of the following month,
• quarterly — by the 20th day of the month following the quarter, if the taxpayer meets the conditions.

There is no deadline on the 25th day. An entrepreneur's health contribution is also paid by the 20th day of the following month.

A business subject to lump-sum tax may deduct from revenue 50% of the paid health contribution relating to that business.

December and the Final Quarter

The PIT advance for December or the fourth quarter is paid by 20 January of the following year.

Lump-sum tax for December or the final quarter is paid by 20 January of the following year, just like advances under the tax scale and flat tax. The same deadline should not automatically be applied to every form of taxation.

Quarterly Settlement

Tax Scale and Flat Tax

Quarterly advances may be used by small taxpayers and entrepreneurs starting a business if they meet the statutory conditions. Small-taxpayer status is tied to a revenue limit equivalent to EUR 2 million.

The selection of quarterly settlement is reported in the annual tax return. There is no general rule requiring a separate written notification by 20 February.

Lump-Sum Tax

Quarterly lump-sum tax has a separate limit — revenue for the previous year cannot exceed the equivalent of EUR 200,000.

The EUR 2 million limit for the tax scale and flat tax must not be applied to quarterly lump-sum tax.

Simplified Advances

Under specified conditions, an entrepreneur subject to the tax scale or flat tax may choose simplified advances calculated on the basis of income from an earlier tax return.

This method:

• is not available to every new business,
• may result in an additional payment or overpayment after the year,
• requires checking the figures from the relevant base year,
• is reported in the annual return in accordance with the applicable rules.

How to Pay

PIT and lump-sum tax payments are sent to the individual tax micro-account. Select the correct form or liability code in the transfer.

If the advance is zero:

• do not make a transfer of PLN 0,
• the entrepreneur does not file a separate monthly return for their own advance,
• retain the calculation in the accounting records.

PIT-4R Does Not Cover the Entrepreneur's Own Advances

PIT-4R is a remitter's return concerning advances withheld, among other things, from employees and contractors. It is not used to summarize an entrepreneur's own advances from a sole proprietorship (JDG).

The entrepreneur's own advances are settled in PIT-36 or PIT-36L, and lump-sum tax in PIT-28.

Late Payment

Failure to pay on time creates tax arrears and may result in interest. The interest rate changes, so use the current rate published by the Ministry of Finance before paying.

An overpayment shown in the annual return does not always remove the consequences of earlier arrears in advance payments.

Overpaid Advances

Excess payments are settled in the annual return. A refund does not always arrive within “2–3 months” — the deadline depends on how the return was filed, verification, and any arrears.

An overpayment may be refunded or credited against other liabilities under the tax procedure.

Most Common Mistakes

1. Paying lump-sum tax by the 25th day.
2. Always dividing the tax-reducing amount into PLN 300 per month.
3. Applying the EUR 2 million limit to quarterly lump-sum tax.
4. Filing PIT-4R for the entrepreneur's own advances.
5. Sending a return or transfer for PLN 0.
6. Treating PLN 14,100 as a limit on the health contribution due.
7. Assuming a fixed late-payment interest rate throughout the year.
8. Ignoring the postponement of a deadline that falls on a weekend or public holiday.
9. Confusing ZUS start-up relief with a tax exemption.

Sources

• Podatki.gov.pl — PIT advances
• Podatki.gov.pl — tax micro-account
• PIT Act — ISAP

Want a Ready-to-Pay Amount and Transfer Details?

Oxyok calculates PIT, lump-sum tax, and contributions and prepares the payment details. Accounting starts at PLN 49 + VAT per month.

Write to Paweł or see Oxyok accounting.

This material is general in nature. The result depends on the form of taxation, income, deductions, and selected payment frequency.