Revenue and expense ledger is the most popular form of accounting. It is characterized by a simplified form of recording, hence the name simplified accounting. When starting a business, you can voluntarily choose a different way of accounting for documents. One of them are commercial books, or full accounting.
- Most often simplified accounting is chosen by entities such as:
- General Partnerships
- Sole traders
- Civil Partnerships
Turnover limit of the P&L register
When a given entity reaches the limit of EUR 2 million, it is obliged by law to switch from KPiR to full accounting.
Choice of the form of taxation
When starting a business based on the revenue and expense ledger, one has to choose the form of taxation. There are two tax forms to choose from. Tax scale (17% and 32%) and flat tax (19%). The threshold for the 17% tax scale is PLN 85 528. Everything above that amount will be subject to 32% tax.
For example, if you set up your business in May and you receive your first income on 20 August, you can change your taxation until 20 September. You can do this once a year.