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Lump-Sum Tax for 2025 – Tax Breaks and Annual Settlement (PIT-28 for 2025)

The clock is ticking down to April 30, 2026 – the final deadline for filing your annual tax return for 2025 if you are taxed under the lump-sum scheme (ryczałt od przychodów ewidencjonowanych).

To fully leverage available tax breaks and minimize your tax burden, it’s essential to carefully review the key aspects of the 2025 annual settlement.

Deadlines and Forms – PIT-28 for 2025

All entrepreneurs using lump-sum taxation must submit:

  • PIT-28 for 2025
  • no later than April 30, 2026

Missing this deadline may result in interest and potential fiscal penalties, so it’s important to prepare your settlement in advance.

Joint Settlement with a Spouse and Child Allowance

When it comes to lump-sum income for 2025:

  • ❌ Joint filing with your spouse is not allowed for income taxed under lump-sum.
  • ❌ The child tax credit (ulga na dziecko) cannot be applied against lump-sum income.

Even if you have children or a spouse with lower income, lump-sum taxation excludes these particular benefits for this form of income.

Tax Breaks Available for Lump-Sum Taxpayers in 2025

Good news: despite certain limitations, lump-sum taxpayers can still benefit from a variety of tax deductions. Below is a detailed overview of the most important ones applicable to the 2025 tax year.

1️⃣ Internet Allowance (Ulga internetowa)

You may deduct part of your internet expenses, even if you are taxed under lump-sum rules.

Conditions:

  • You must have incurred internet expenses during the 2025 tax year.
  • The deduction may only be claimed for two consecutive tax years.
  • Internet expenses cannot:
    • be treated as business costs, or
    • be deducted from revenue under other provisions.
  • Maximum deduction per year: 760 PLN.

This means a potential real tax saving of approximately 60–120 PLN, depending on your lump-sum rate.

Documentation requirement:

You must have invoices or other proof of payment showing:

  • type of service,
  • amount paid,
  • confirmation of payment.

2️⃣ Donation Allowances (Ulgi z tytułu darowizn)

You may deduct the value of certain donations made in 2025.

Eligible donations include:

  • public benefit organizations (charitable purposes),
  • religious worship,
  • blood donation,
  • vocational training support.

Limit:
Deduction is allowed up to 6% of your annual income.

Special rules:

  • Donations for church charitable and care activities may be fully deductible.
  • For blood donation, the deduction equals the statutory monetary equivalent per liter of blood or its components.

Always keep proper documentation confirming both the donation and its acceptance.

3️⃣ Rehabilitation Allowance (Ulga rehabilitacyjna)

If you are a person with a disability or you support a disabled dependent, you may deduct:

  • rehabilitation expenses,
  • costs of necessary medical equipment,
  • adaptation of housing,
  • transportation for treatment (under specific limits).

This allowance can significantly reduce taxable income, provided formal requirements and documentation are met.

Return Allowance (Ulga na powrót)

Planning to return to Poland permanently? The Return Allowance remains in force in 2025 and may provide substantial tax relief.

If you moved your tax residence to Poland after December 31, 2021, you may benefit from:

  • exemption from personal income tax
  • for four consecutive tax years
  • up to 85,528 PLN per year (within statutory limits).

Conditions include:

  • transferring your tax residence to Poland,
  • earning income qualifying for the exemption (e.g., employment, contracts, or business activity),
  • meeting citizenship or residency requirements (e.g., Polish citizenship, Karta Polaka, or citizenship of EU, EEA, Switzerland, Australia, Chile, Israel, Japan, Canada, Mexico, New Zealand, South Korea, United Kingdom or the USA),
  • proper documentation of previous foreign tax residence.

This relief is particularly relevant for entrepreneurs returning to Poland to launch or continue business activity under lump-sum taxation.

If you are unsure whether you qualify, professional tax advice is highly recommended.

4+ Allowance (Ulga dla rodzin 4+)

This is one of the most significant exemptions still available in 2025.

Parents or legal guardians raising at least four children may benefit from:

  • exemption from personal income tax
  • up to 85,528 PLN annually per eligible parent.

Children must meet statutory conditions:

  • minors, or
  • students up to age 25,
  • and must not exceed income limits defined by law.

This relief applies independently to each qualifying parent, which may result in significant savings.

Final Thoughts – Annual Settlement for 2025

Although lump-sum taxation excludes certain benefits (like joint settlement and child tax credit), it still offers access to valuable deductions and exemptions.

To optimize your 2025 annual settlement:

  • Review your eligibility for available tax breaks.
  • Ensure you have proper documentation.
  • Submit PIT-28 no later than April 30, 2026.
  • Consider consulting a tax advisor if your situation involves multiple income sources or international elements.

Smart use of tax reliefs can substantially reduce your tax burden — even under lump-sum taxation.

If you need help with your 2025 settlement, feel free to contact our office.

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