An error in CEIDG can have drastic consequences for entrepreneurs changing their form of taxation. What should you do if your notification of the change in the form of taxation doesn’t reach the tax office? What if the application submitted through CEIDG wasn’t processed? Are you at risk of paying PIT according to the progressive scale? Recently, an article in Rzeczpospolita published a comment by Piotr Sekulski, PhD on this issue.
The topic of an ineffective change in the form of taxation and its consequences has been addressed by us before:
Notification of Change in Taxation Form not only via CEIDG
In one of our previous posts, we also discussed the judgment of February 22, 2024 (Case No. II FSK 710/21). The Supreme Administrative Court considered whether an error in the CEIDG affects the choice of the form of taxation based on Article 9a, Section 2 of the PIT Act (regarding flat tax):
Error in CEIDG and Change of Taxation Form
In the article available at this link , you will find a lot of interesting information on the practical approach of the tax authorities regarding the topic of “CEIDG error and change of taxation form.
tax advisor Piotr Sekulski, PhD
“This can lead to significant tax arrears. Suppose an entrepreneur has been paying an 8.5% or 12% lump sum for four years, believing they have the right to do so. However, it turns out that the tax office doesn’t have their declaration about the change in the form of taxation. The tax authorities then claim that they should have been paying PIT according to the progressive scale. If they have a high income, the tax rate is 32%. As a result, a large amount of tax must be paid for those four years. Additionally, there is the health insurance contribution, which since 2022 depends on the form of settlement.”
If you have questions regarding changing your form of taxation, visit us at www.outsourced.pl.
