The Polish government has announced draft legislation (UD116) that could significantly change how businesses using the lump-sum tax (ryczałt) are taxed. If adopted, some service providers currently paying an 8.5% tax rate may have to pay 15% on part of their income from 2027. Below we explain who would be affected, how the PLN 100,000 threshold works, and how to prepare your business.

Who will be affected by the 2027 lump-sum tax changes?

Under the proposal, entrepreneurs providing services who do not employ at least one full-time employee may lose the right to apply the 8.5% tax rate.

Instead, they would pay:

• 8.5% on annual revenue up to PLN 100,000,
• 15% on revenue exceeding PLN 100,000.

For many small service businesses – trainers, freelancers, consultants, agents and parts of the IT sector – this could almost double the tax burden on a share of their income.

The employment requirement – the key to the lower rate

The draft introduces a new condition for keeping the lower tax rate: a business would need to employ at least one full-time employee throughout the tax year.

For newly established businesses, this requirement would apply from the moment they begin using the lump-sum taxation scheme.

A potential risk: losing an employee mid-year

One of the most significant – and riskiest – aspects of the proposal concerns losing an employee during the year.

If the employment requirement is no longer met, the entrepreneur may have to apply the 15% rate to the excess revenue earned from the beginning of the tax year. This could mean additional tax becoming payable retroactively – even for months when the employee was still on the payroll.

As a result, entrepreneurs would need to monitor not only their revenue level but also the continuity of employment.

What should entrepreneurs do?

At this stage, these are only draft regulations and may still change during the legislative process. Under current assumptions, the new rules would take effect on 1 January 2027.

Businesses currently using the 8.5% flat-rate tax should already:

• monitor the progress of the UD116 draft,
• assess how the potential changes could affect their tax burden,
• weigh whether hiring an employee or accepting the higher rate is more cost-effective.

Early planning can help avoid unexpected tax costs if the new rules are eventually adopted.

Not sure whether the new rate applies to you? Talk to easybooks

The new lump-sum rates call for an individual calculation – the answer to “hire someone or pay the 15%” depends on your revenue, costs and business model. easybooks is an accounting firm offering full bookkeeping, HR & payroll and tax advisory services, helping you see how the 2027 changes would affect your tax and choose the most favourable scenario.

👉 Get in touch with the easybooks team and plan your 2027 taxes before the changes take effect.

Frequently Asked Questions (FAQ)

Will the 15% rate apply to all income? No. The higher rate would apply only to revenue exceeding PLN 100,000 per year. Up to that threshold, the 8.5% rate still applies.

How can I keep the lower lump-sum rate? The condition for keeping the 8.5% rate would be employing at least one full-time employee throughout the tax year.

When would the new rules take effect? Under the UD116 draft – from 1 January 2027. However, this is still a proposal and may change.