Types of taxation for sole proprietorships (JDG)

Types of taxation for sole proprietorships (JDG)

The most difficult stage of registering a sole proprietorship is deciding on its taxation type. It all depends on the type of business you are doing and what your income (the total amount you earn) and income (what is left over after taxes, expenses and contributions are deducted) are. In this short article, we will take a closer look at tax rates and how they work, which will help you choose the rate that is right for your business.

Tax rates for JDGs:

• Progressive (scale) – 12% tax on income (above 120,000 income in a year 32%)
• Linear – 19% tax on income
• Lump sum (on income):

1. 17% – liberal professions (agents, advisers, brokers, translators, lawyers, notaries, brokers, advocates)
2. 15% – warehouses, brokerage, car parks, licensing services, agencies, among others
3. 14% – health care, architectural services, design services
4. 12% – all IT services, software and consultancy services
5. 10% – provision of services of purchase and sale of real estate on own account
6. 8,5% – renting, leasing, accommodation (up to 100,000 per year, 12.5% over 100,000)
7. 8,5% – catering, education
8. 5,5% – manufacturing, commissions
9. 3% – catering (excluding alcohol), animal production, commerce
10. 2% – sale of non-industrially processed plant and animal products

If you need advice on what rate would be most suitable for your business we can provide you with assistance and consultancy services. Write to us at office@progressholding.pl.

Jan Kowalski

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