What is KPiR and what is it used for in 2026?
The KPiR is the tax revenue and expense ledger where you record revenues and costs from your business activity. It is used solely for income tax purposes and forms the basis for calculating advance payments and the annual tax return.
Legal basis of KPiR
The KPiR primarily stems from the Personal Income Tax Act (PIT Act), specifically Article 24a. Detailed rules for keeping the ledger are defined by the Regulation of the Minister of Finance on keeping the tax revenue and expense ledger. Up-to-date texts can be found in the Journal of Laws on isap.sejm.gov.pl.
- Personal Income Tax Act – consolidated text on isap.sejm.gov.pl
- Regulation of the Minister of Finance of 23.12.2019 on KPiR
- New KPiR Regulation in force from 2026
What is KPiR used for in practice?
Based on the KPiR, you calculate your income, which is the difference between revenues and business costs. These data are later transferred to the annual PIT-36 or PIT-36L tax return. The ledger also allows you to control your company’s margin and profitability on a monthly basis.
When does KPiR make sense for your company?
KPiR is most profitable for micro and small companies that do not have a complicated structure. It works well for freelancers, sole proprietorships, and simple partnerships. At Progress Holding, we always analyze whether KPiR is the best choice for you, or if it is better to move immediately to full accounting.
Who must keep the KPiR in 2026?
In 2026, the KPiR must be kept by natural persons and partnerships of natural persons, if they settle on general principles or flat-rate tax and have not exceeded the revenue threshold that mandates full accounting. You do not use KPiR if you settle on a lump sum (Ryczałt), tax card, or have a capital company.
Entities that typically keep KPiR
- a natural person running a sole proprietorship,
- a civil partnership of natural persons,
- a registered partnership of natural persons,
- a professional partnership,
- an enterprise in inheritance, if revenues fall within the KPiR limit.
When do you not use KPiR?
- when you settle on a lump sum from registered revenues or a tax card,
- when you keep accounting books (full accounting),
- when you operate as a limited liability company (Sp. z o.o.), joint-stock company (S.A.), or simple joint-stock company (P.S.A.),
- when your business revenues exceeded the limit of 2.5 million euro and the obligation to keep full accounting books arose.
KPiR and a foreigner running a business in Poland
A foreigner can run a business on KPiR if they meet the conditions for entry, stay, and access to business activity in Poland. You need a PESEL or NIP number, a delivery address, and registration of the activity in CEIDG or registration of a company. Progress Holding assists foreigners with complete company registration, selection of the form of taxation, and launching the KPiR step by step.
What is the revenue limit for KPiR and when must you switch to full accounting in 2026?
The obligation to switch from KPiR to accounting books in 2026 arises when your revenues for 2025 exceed the equivalent of 2.5 million euro. For 2026, this means revenues of at least PLN 10,646,500.
How is the 2.5 million euro limit calculated?
The limit stems from the Accounting Act and the PIT Act. It is converted into zlotys according to the average exchange rate of the National Bank of Poland (NBP) from the first working day of October of the previous year. On this basis, the amount of PLN 10,646,500 was adopted for 2026.
What does exceeding the limit mean for your company?
If you exceed the revenue limit of PLN 10,646,500 in 2025, you must keep accounting books from January 1, 2026. You can no longer use KPiR in the subsequent tax year. In such a situation, Progress Holding helps by transferring your data from KPiR to full accounting and arranging a chart of accounts in accordance with the Accounting Act.
Voluntary switch to full accounting books
Even if you do not exceed the limit of 2.5 million euro, you can voluntarily switch to accounting books. This step makes sense when you are developing your company, acquiring an investor, or bank financing. We jointly analyze whether, in your case, the informational gain from full accounting justifies the higher service costs.
How to set up and report KPiR step by step?
You establish the KPiR on the day your business starts or on the first day of the new tax year. All formalities can be completed when registering the activity, by properly filling out the CEIDG application or the company’s registration documents.
Step 1. Choose the form of income taxation
To keep KPiR, you choose general principles (tax scale 12% and 32%) or flat-rate tax (19%). A lump sum from registered revenues requires a different record, not the KPiR. You indicate the chosen form in the CEIDG application or a separate statement to the tax office.
Step 2. Register your business and identification number
A natural person registers the activity in CEIDG, and a partnership requires an agreement and registration with the appropriate register and tax office. A foreigner needs a PESEL or NIP number and an address in Poland for deliveries. Progress Holding carries out the entire registration process and helps obtain the required numbers and ZUS notifications.
Step 3. Start the KPiR at the appropriate time
You set up the ledger no later than the day the business starts or from January 1 of the new tax year. The KPiR can be kept electronically in accounting software or – in exceptions – in paper form, in accordance with the regulation. Even at the stage of setting up the ledger, it is worth ensuring a template that complies with the current regulation for 2026.
Step 4. Reporting the accounting office
If you entrust the keeping of the KPiR to Progress Holding or another office, the tax office should know the address where the ledger is stored. Information about the place of keeping the books is entered in CEIDG or reported by updating the NIP. This way, the office knows where it can request to see the documentation.
What does the KPiR structure look like and what columns does it contain?
The KPiR has a unified table layout specified in the Regulation of the Minister of Finance. It consists of columns that organize the most important data on revenues and costs.
What data must be in the KPiR header?
- company name and name and surname of the taxpayer,
- business address,
- NIP of the taxpayer,
- title “Tax Revenue and Expense Ledger” and the month and year to which the entries relate.
The most important columns in KPiR – a practical overview
| KPiR Area | What do you enter? |
|---|---|
| Basic entry data | Entry No., date of the economic event, number of the accounting document, description of the operation. |
| Sales revenues | Value of sold goods and services, other business revenues. |
| Purchase of goods and materials | Purchase invoices for trading goods, materials, and incidental purchase costs. |
| Remuneration | Employees’ remuneration in cash and in kind related to the activity. |
| Other expenses | Fixed costs, external services, rent, utilities, marketing, and other costs of obtaining revenue. |
| Summaries | Total expenses, total revenue, and the result for the settlement period. |
Additional records next to KPiR
In addition to the KPiR itself, you must keep records of fixed assets and intangible assets. Often, an inventory of equipment, vehicle mileage records, and reports from the cash register are also needed. At Progress Holding, we ensure that all these registers are consistent with the entries in the KPiR and JPK files.
What revenues and costs do you enter in the KPiR?
All revenues from your business activity taxed on general principles or flat-rate go into the KPiR. You also enter costs of obtaining revenue that are related to the achieved revenues.
Revenues in KPiR – what do you include?
- sale of goods and services documented by invoices and receipts,
- revenues not documented by invoices, recorded on the basis of your own internal documents,
- other business revenues, for example, interest on funds in the company account,
- revenues in foreign currencies after conversion into zlotys according to the appropriate exchange rate.
Moment of revenue generation in KPiR
The moment of revenue generation is determined by the PIT Act. As a rule, it is the day the goods are released, the service or part of the service is performed, no later than the day the invoice is issued or payment is received. This allows the tax office to link your revenues to the period they relate to.
Costs of obtaining revenue – practical examples
- purchase of trading goods and materials for production,
- rent for the office, fees for utilities and the Internet,
- leasing and operating costs of a car used in the business,
- accounting, legal, marketing services, and training related to the activity,
- employees’ and contractors’ remuneration, ZUS contributions financed by the employer.
Typical costs entrepreneurs forget about
In practice, you often omit small expenses that are also tax deductible costs. This includes office supplies, fees for domains and hosting, or small purchases of equipment. At Progress Holding, we ensure that no invoice related to the business falls out of the accounting circulation.
What are the deadlines for KPiR entries and how are errors corrected?
Entries in the KPiR should be made continuously, in accordance with the chronology of events. However, the legislator allows for certain simplifications, especially when you entrust the keeping of the ledger to an accounting office.
Deadlines for entries when you keep KPiR yourself
You typically make entries once a day, after the end of the day to which the economic events relate. You have time to do this no later than the start of work on the following day. This rhythm ensures the consistency of the KPiR with sales and purchase documents.
Deadlines for entries when KPiR is kept by an accounting office
If Progress Holding keeps the KPiR, you can transfer documents collectively. Entries can then be made up to the 20th day of the month for the previous month. The condition is that the entries are kept in chronological order.
Correcting mistakes in KPiR
Errors in the KPiR are corrected by amending the entry, while maintaining legibility. The most common method is crossing out the incorrect amount and entering the correct one with a signature and date. In electronic systems, it is important that the correction leaves a trace in the change history.
How to keep KPiR electronically and what changes does JPK_PKPIR bring in 2026?
From 2026, PIT taxpayers who submit JPK_V7 must keep the KPiR electronically in computer software. Data from the ledger will be transmitted in the JPK_PKPIR structure upon request from tax authorities, and in subsequent years, probably cyclically.
Who must keep KPiR exclusively electronically?
- PIT taxpayers settling VAT and transmitting the JPK_V7M or JPK_V7K file,
- entrepreneurs who conduct sales requiring record-keeping in accounting systems,
- most taxpayers running a business on KPiR, with some exceptions indicated in the act.
New JPK_PKPIR structure from 2026
The Ministry of Finance has published a brochure describing the JPK_PKPIR structure applicable from January 1, 2026. The file includes header data, taxpayer identification, and detailed information on revenues, costs, and inventory (Spis z natury). This means that errors in the KPiR will be much easier to detect during an audit.
How to prepare technically for the new requirements?
You need accounting software that supports the new JPK_PKPIR scheme and a secure data archive. It is worth establishing internal procedures for document flow and entry quality control. Progress Holding can take over the entire KPiR service, preparation, and submission of JPK, so you don’t have to worry about system configuration.
How does it look in practice? Progress Holding experience
For over a dozen years, we have been keeping KPiR for entrepreneurs from Poland and abroad, mainly in Warsaw. Based on the analysis of over 500 registration processes and hundreds of annual settlements, we see repeatable errors. The good news is that most of them can be easily avoided.
Our data: the most common errors in KPiR
- delayed transfer of documents to the office, so entries are not “up to date”,
- lack of linking cash register reports with entries in the KPiR,
- incorrect accounting of mixed expenses, for example, a car used privately and for business purposes,
- omitting small online costs, such as subscriptions for applications and tools,
- problems with accounting for invoices in foreign currencies and exchange rate differences.
How we work with foreign clients
Many of our clients are foreigners who are setting up their first company in Poland and are unfamiliar with local regulations. We help them choose the form of activity, obtain a PESEL or NIP, and open a bank account. Then, we keep the KPiR in two working languages, explaining the tax consequences of every business decision.
Model of cooperation with Progress Holding regarding KPiR
We usually set a fixed schedule for transferring documents – for example, once a week or once a month. The client has insight into current financial results and tax forecasts, allowing for liquidity planning. If you plan to grow, we immediately design the process so that it is easy to transition to full accounting.
Frequently asked questions
Below you will find answers to the questions I hear most often from entrepreneurs starting work with KPiR. Each of them can be a separate cheat sheet for use in your company.
Can a foreigner run a business on KPiR in Poland?
Yes, provided they have the right to conduct business in Poland and meet the registration requirements. The type of documents needed depends on citizenship and the basis of stay. At Progress Holding, we analyze your immigration and tax situation and select a safe operating model.
How long must KPiR and documents be stored?
The KPiR and accounting documents are generally stored for five years, counting from the end of the year in which the tax payment deadline expired. In practice, this often means storing documentation for six full calendar years. For the electronic version, backup copies are also important.
Does the KPiR have to be kept by an accounting office?
The law does not require the use of an accounting office; you can keep the KPiR yourself. In practice, many people decide to rely on specialists because tax regulations change frequently. Progress Holding takes responsibility for the correct keeping of the KPiR and represents you before the tax office.
Can I change the form of taxation with KPiR during the year?
You usually choose the form of taxation at the beginning of the year, and it applies until the end of the year. Switching back from the flat rate to the tax scale is possible from the next tax year, based on a statement. Exceptions are rare, which is why the correct decision at the start, preferably after consultation with an advisor, is so important.
What are the consequences of not having KPiR or serious errors?
The lack of KPiR or egregious errors in the ledger may result in the tax office estimating your income. This can mean higher tax and possible criminal-fiscal sanctions. Regular review of the ledger by Progress Holding significantly reduces this risk.
Can I suspend my business and what about KPiR then?
During the period of business suspension, you generally do not record current revenues and costs because they are essentially absent. However, you still store the existing documentation and can account for some events, such as depreciation. It is worth consulting an accountant before suspending to choose the most favorable moment.
What are the deadlines for tax advance payments with KPiR?
With KPiR, income tax advance payments are paid monthly or quarterly if you meet the conditions of a small taxpayer. The deadline is usually the 20th day of the month following the settlement period. At Progress Holding, we calculate advance payments and remind you of deadlines to avoid interest.
KPiR in 2026 remains the basic settlement tool for thousands of small businesses but requires increasing discipline and compliance with electronic systems. If you want to focus on business development, not tracking changes in regulations, hand over your accounting to specialists. Do you need professional support? Contact us at Progress Holding at +48 603 232 418 or by email office@progressholding.pl.
