Polish lump-sum tax for foreign JDG owners in 2026

Polish ryczałt is a tax on revenue, not profit. It can be attractive to a foreign freelancer with few business costs, but it is not Poland's version of a single flat tax for every small business. The rate follows the service actually sold and its PKWiU classification.

Rates run from 2% to 17%. Software, consulting, design and translation can fall under different rules, even when one client describes all of them as “freelance work”. List each revenue stream before choosing a rate. PKD codes entered in CEIDG do not settle the answer.

In 2026, ryczałt is generally available when 2025 revenue did not exceed the equivalent of EUR 2 million (PLN 8,517,200). A new business may choose it from its first revenue. The election is normally due by the 20th day of the month after the month of first revenue; December starts have a year-end deadline.

You cannot deduct ordinary business costs. A laptop, coworking desk or subcontractor therefore does not reduce the tax base. A ryczałt taxpayer may, however, deduct 50% of paid health-insurance contributions from revenue under the current rules.

Ryczałt and VAT are separate decisions. You may pay ryczałt and still register for VAT, or use the PLN 240,000 domestic VAT exemption if your activity qualifies. Cross-border services can trigger VAT-UE or reverse-charge duties even below that threshold.

Before you choose

Write down what you sell, where your customers are established, your expected annual revenue and recurring costs. Then compare ryczałt with the tax scale and flat-rate PIT. Foreign tax residence and social insurance also need a separate check.

Official references: PIT rates and limits, ryczałt rules, health contribution deductions.

Oxyok can review your services before the first invoice and keep the records in English or Polish. See JDG accounting or email [email protected].