New developments in tax returns for freelancers in 2025

 The year 2025 brings significant changes to the tax system, which are shaping the way freelancers settle their taxes in Poland. In light of the rapid growth of the remote work market and the increasing number of people providing services on a self-employed basis, adapting the tax system to the realities of freelancing is becoming a priority. In this report, based on an analysis of the latest regulations and practices, I present a comprehensive overview of tax returns, tax reliefs, social security contributions and VAT obligations for freelancers in 2025.

 Characteristics of a freelancer as a taxpayer in 2025

 In 2025, a freelancer is, first and foremost, a person who independently manages their professional activities, often working with numerous clients, both domestic and international. Under Polish tax law, a freelancer may operate under various forms of employment and tax arrangements, including sole tradership (JDG), civil law contracts (contracts for services, contracts for specific work) or via tax settlement platforms. A key aspect is tax resident status, which determines the obligation to declare global income in Poland.

 Forms of taxation and tax settlement for freelancers in 2025

 General principles and tax scale

 The most traditional form of tax settlement is taxation under general rules, i.e. the progressive tax scale. In 2025, income tax rates are 12 per cent for income up to 120,000 PLN and 32 per cent for amounts exceeding this threshold. Freelancers who file their tax returns in this way benefit from a tax-free allowance, which in 2025 amounts to up to 30,000 PLN, significantly reducing their tax liability.

 Flat tax – a stable rate for higher incomes

 An alternative to the tax scale is the flat-rate tax, with a fixed rate of 19 per cent, regardless of the level of income. This solution is particularly advantageous for freelancers with relatively high earnings who, at the same time, incur low tax-deductible expenses. It is worth noting that under this form of taxation, no tax reliefs or tax-free allowances apply.

 Lump-sum tax on recorded income

 For freelancers who prefer a simplified form of tax settlement, a flat-rate scheme is available, with rates in 2025 ranging from 8.5 per cent to 12.5 per cent, depending on the type of services provided. The flat-rate scheme does not allow for the deduction of business expenses, which is why it is ideal for those with low business expenditure. It is worth noting that the flat-rate scheme can be settled using the cash-based PIT method, which has a positive impact on a freelancer’s cash flow.

 Tax card and unregistered business activity

 Although the tax card is less popular amongst freelancers, it remains an option for certain professions. In 2025, it will also be possible to operate an unregistered business, which allows for the settlement of costs and taxes without formally registering a company, making it an attractive alternative for budding freelancers.

 Tax reliefs for freelancers in 2025 – how to make the most of them?

 Tax reliefs remain an important tool for optimising a freelancer’s tax returns. In 2025, the following are available, amongst others:

•  Youth tax relief – an income tax exemption of up to 85,528 zł per year for people aged 26 and under, excluding contracts for specific work and business activities.
•  Donations – the option to deduct donations made for social or charitable purposes.
•  Social security contributions relief – deduction of social security contributions from the tax base.
• Family tax relief – for those bringing up children
• Internet allowance – up to 760 zł per year, available for two consecutive years
• Rehabilitation relief – for people with disabilities or those supporting dependants with disabilities
• IP Box relief – a preferential rate of 5 per cent on income from qualifying intellectual property rights, available to sole traders

 It is essential to properly document and record expenses that may constitute tax-deductible costs, thereby reducing the tax base.

 Freelancer social security contributions in 2025 – obligations and limits

 In 2025, ZUS contributions remain a significant part of the financial burden for freelancers running a sole trader business. The minimum contribution is approximately 1,700 PLN per month, covering pension, disability, sickness and accident insurance. There is an annual limit on the contribution base of approximately 260,000 PLN.

 However, there are relief schemes, such as the ‘start-up relief’ and ‘Small ZUS Plus’, which allow for a reduction in contributions for new entrepreneurs or those on lower incomes. In 2025, the minimum basis for health insurance contributions was reduced to 75 per cent of the minimum wage, which translates into lower monthly costs.

 Freelancers who do not run a business and are paid under civil law contracts pay ZUS contributions on their contracts for specific tasks if their income exceeds the minimum contribution base.

 VAT for freelancers in 2025 – rules, exemptions and obligations

 VAT payer status is crucial for freelancers when working with companies, particularly when clients expect VAT invoices. In 2025, the threshold for VAT exemption is PLN 200,000 in annual revenue, meaning that freelancers who do not exceed this threshold may benefit from the exemption and are not required to register as VAT payers.

 Once this threshold is exceeded, VAT registration is required, and from that point onwards, the freelancer is obliged to keep records of sales and purchases, issue VAT invoices and submit VAT-7 or VAT-7K returns.

 When working with clients from the European Union, the reverse charge mechanism applies, meaning that VAT is accounted for by the recipient of the service. Freelancers providing services outside the EU must pay attention to the place of supply and their documentation obligations.

 From 2025, it will be mandatory to issue invoices via the National e-Invoice System (KSeF), which increases transparency and facilitates tax audits.

 Freelancer accounting in 2025 – tools and obligations

 Keeping accounts in 2025 will require freelancers to maintain precise records of income, expenses and tax documentation. Depending on their tax regime, freelancers may use:

•  A revenue and expenditure ledger (KPiR) – for sole traders operating under general rules and the flat-rate tax scheme.
•  Income records – for the flat-rate scheme.
•  Simple records – for unregistered businesses.

 In 2025, platforms and apps for automating tax settlements, such as Useme, Bizky and Freelancehunt, are becoming increasingly popular; these enable the integration of settlements with clients, the automatic generation of PIT returns and facilitate financial management.

 Freelancers should also use the services of tax advisers or accountancy firms to avoid errors and optimise their tax liabilities.

 How to file a tax return as a freelancer in 2025 – practical tips

 Filing a tax return as a freelancer in 2025 requires an understanding of and compliance with current regulations, as well as the timely submission of the relevant returns. Here are the key steps:

•  Gathering documentation confirming income and expenses (invoices, contracts, payment receipts).
•  Choose a form of taxation suited to the nature and amount of your income.
•  Completing the tax return: PIT-36 or PIT-36L for sole traders, PIT-37 for civil law contracts, PIT-28 for the flat-rate scheme.
•  Submit the return by 30 April 2025 – either electronically via the Twój e-PIT system or by post.
•  Completing the annexes, e.g. PIT/O for tax relief or PIT/ZG for foreign income.
•  Monitoring the deadlines for advance payments of income tax and social security contributions.

 It is worth considering the use of tax settlement platforms that aggregate income from multiple clients and automate the settlement process, thereby minimising the risk of errors and streamlining tax management.

 Taxation of a freelancer’s foreign income – tax aspects 2025

 Freelancers working with foreign clients must pay particular attention to the tax obligations associated with accounting for income from abroad. A Polish tax resident is subject to unlimited tax liability, which means they must declare all income, regardless of the country of origin.

 In practice, this means they must submit a PIT-36 tax return together with the PIT/ZG annex, which documents foreign income. It is also important to check whether Poland has concluded a double taxation agreement with the country in question, which specifies the methods of tax settlement (the exemption with progression method or the proportional deduction method).

 In the case of VAT settlements for services provided to foreign companies, the rules regarding the place of supply of services and the reverse charge mechanism apply.

 Cash-basis PIT for freelancers – when is it worth using?

 Cash-based PIT (cash tax) is a form of income tax settlement in which the moment the tax liability arises is linked to the actual receipt of payment. This solution improves a freelancer’s cash flow by eliminating the need to pay tax on funds not yet received.

 In 2025, the cash-based PIT scheme is available to business owners whose annual revenue does not exceed 2 million euros (approximately 10 million PLN). Opting for this scheme requires notification to the tax office and the maintenance of appropriate cash-based records of income and expenditure.

 The cash-based PIT scheme is particularly beneficial for freelancers who experience payment delays or work on an advance payment basis. It simplifies financial management and reduces the risk of liquidity problems.

 Tax-deductible expenses – how to claim them effectively?

 Tax-deductible expenses are a key element of tax optimisation for freelancers. These are expenses incurred to generate, secure or maintain a source of income, and documenting them correctly allows you to reduce your tax base.

 Typical costs for a freelancer include:

•  The purchase of computer hardware and software.
•  Expenditure on office supplies.
•  Costs of training and courses to improve qualifications.
•  Internet and telephone charges.
•  Rent for an office or co-working space.
•  Costs of business travel and secondments.

 In 2025, a limit of 50 per cent of copyright-related costs up to PLN 120,000 per year applies, alongside standard limits on tax-deductible expenses for employment contracts and contracts for specific tasks. For sole traders, the range of eligible expenses is considerably broader.

 Freelancers should keep detailed records and archive documents confirming expenses incurred, as this is essential in the event of a tax audit.

 Summary

 The year 2025 brings significant changes and opportunities for freelancers in terms of tax returns, social security contributions and VAT. It is crucial to choose the form of taxation carefully, make use of available tax reliefs and keep meticulous accounts. Changes such as the cash-based PIT scheme, increased VAT exemption thresholds and new regulations concerning social security contributions help to increase flexibility and improve freelancers’ cash flow.

 In the face of growing formal requirements and the complexity of regulations, it is worth utilising professional accounting services, tax consultancy and modern accounting platforms that automate processes and minimise the risk of errors. Only in this way can freelancers effectively manage their finances, maximise profits and avoid unnecessary penalties.

 Understanding and correctly applying the 2025 tax settlement rules for freelancers is the foundation for safe and effective operation in the services market; that is why it is worth investing in education and support from the experts at the firmadlakazdego.pl business incubator.

Frequently asked questions

What tax regimes can a freelancer choose in 2025?

Freelancers can opt for general tax rules (12% and 32% tax bands), a flat-rate tax (19%), a lump-sum tax on recorded income, or a tax card. The choice depends on the level of income, expenses and the specific nature of the business. For many, simplified schemes, such as the flat-rate scheme, are also advantageous, particularly where operating costs are low. It is worth consulting a tax adviser to select the most suitable method.

Does a freelancer have to pay tax on foreign income?

Yes, if they are a Polish tax resident (staying in Poland for more than 183 days or having the centre of their vital interests in the country), they must declare all their income, including that earned abroad. Poland has concluded double taxation agreements which allow for a deduction of tax paid abroad or the exclusion of income on a progressive basis. The tax return is filed using form PIT-36 with the PIT/ZG annex.

What is the cash-basis PIT and when is it worth using?

The cash-basis PIT is a form of tax return where tax is paid only after the freelancer has actually received payment from the client, rather than at the time the service is provided. This solution improves a freelancer’s cash flow, particularly when there are delays in payments or when advance payments are being accounted for. The cash-basis PIT is available to entrepreneurs with an annual turnover not exceeding 2 million euros and requires registration with the tax office and the keeping of appropriate records.

What tax-deductible expenses can a freelancer claim?

Tax-deductible expenses are costs incurred to generate, secure or maintain income. A freelancer may deduct, amongst other things, the purchase of computer equipment, software, office supplies, training courses, business travel expenses or office rent. It is important to document expenses properly and retain accounting records. For specific-task contracts and service contracts, a standard deduction of 20 per cent applies, whilst for copyright royalties, the deduction is 50 per cent (up to a limit of PLN 120,000 per year).

What are a freelancer’s obligations regarding issuing invoices?

Freelancers can issue invoices either through their own business or by using invoicing platforms or business incubators. Invoices must contain the required formal details, such as the seller’s and buyer’s details, tax identification number (NIP), date, description of the service, amount and taxable amount. Invoices must be issued no later than the 15th day of the month following the provision of the service. In the event of errors, a corrective invoice must be issued. For overseas clients, invoices may be issued in a foreign currency and a foreign language, with the amount converted into zlotys at the National Bank of Poland’s exchange rate.

What are the PIT filing deadlines for freelancers in 2025?

PIT returns may be submitted from 15 February to 30 April 2025. Freelancers who settle their tax under the general rules or the flat-rate scheme use form PIT-36 or PIT-36L, whilst those working under civil law contracts use form PIT-37. In the case of foreign income, it is necessary to attach the PIT/ZG form. It is worth remembering to submit your tax return on time to avoid penalties, and also to be aware of the possibility of making corrections.