Simplified reporting for micro entrepreneurs

On 5th of September 2014 an amendment to the Act on Accounting has come into force being an implementation of the Directive of the European Parliament and of the Council 2013/34/EC of 26 June 2013, concerning the annual financial statements (...).

General purpose of the amendment is to reduce costs of conducting business. The most important changes include: 

  1. permission to prepare simplified financial statement for the so-called micro units, i.e. abridged balance sheet (which will consist of three items of assets and three items of liabilities) and abridged profit and loss account,
  2. possibility of exemption from preparing additional information and the management report (provided that some data is disclosed in the information attached to the balance sheet).

In accordance with the amendments, as micro entrepreneurs are considered, among others: joint-stock companies, limited liability companies and limited joint-stock partnerships  - which in the financial year for which report is being prepared and in the year preceding that financial year, did not exceed the limits of at least two of the three following criteria: 

(a) balance sheet total: PLN 1,500,000.00;

(b) net turnover: PLN 3,000,000.00;

(c) average number of employees during the financial year: 10.

In addition, the provisions of amendment to the Act on Accounting, as micro entrepreneurs we should consider natural persons, civil law partnership, partnerships of natural persons and professional partnerships, if the net income of these entities from sales of goods, products and financial operations amounted to the equivalent in Polish currency is not less than 1.200.000,00 EUR and no more than 2.000.000,00 EUR for previous financial year and in the case of individuals starting out business or keeping the accounting books in the manner prescribed by law - in the financial year in which they commenced business or keeping the accounting books  in the manner prescribed by law.

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