From January 2025, Polish entrepreneurs will have to face a
with a new legal obligation - the introduction of the Single Control File for corporate income tax, or JPK CIT.
This is another tool to tighten the tax system
in Poland, but at the same time introducing new challenges for companies.
In the article, we will look at what the CIT JPK is, what its consequences will be for entrepreneurs, and what measures are worth taking to properly prepare for the upcoming changes.

What is JPK CIT?

The Uniform Control File (JPK) is an electronic form of reporting that has been in effect in Poland for several years for VAT. JPK CIT is a new form of this tool, aimed at corporate income taxpayers. Its purpose is to simplify and standardize the process of reporting corporate income, which will allow for more effective control by tax authorities.

CIT's JPK will cover a wide range of financial data, such as revenues, expenses, tax credits, and intra-group transactions. All of this information will have to be presented in a strictly defined format, in accordance with the requirements of the Ministry of Finance.

Why was the CIT JPK introduced?

The introduction of JPK CIT is part of the Finance Ministry's broader strategy to reduce the tax gap and prevent unfair tax practices. With mandatory reporting in the form of JPK CIT, tax authorities will be able to identify potential abuses faster and more efficiently, as well as better control companies' accounts.

CIT's JPK also aims to increase companies' tax transparency,
Which in turn should improve competitiveness in the market. Companies that until now have not paid due attention to the accuracy of their accounts will have to adapt their financial processes to the new requirements.

Consequences for entrepreneurs

For many entrepreneurs, the introduction of JPK CIT means that they will have to make significant changes in keeping financial records. Particular attention will have to be paid to companies that conduct business
In equity groups, where internal transactions can be particularly complex and error-prone.

The need to adapt accounting systems to the requirements of JPK CIT entails additional costs, both at the stage of implementation and subsequent operation of the system. Companies will have to invest in the appropriate software, as well as in the training of personnel who will be responsible for preparing and sending JPK CIT files.

Also not to be forgotten is the risk of financial penalties that companies will face for failing to report according to the new requirements. These penalties can be imposed both for delays in file submission and for errors in the data submitted.

How to prepare for JPK CIT?

To adequately prepare for the introduction of JPK CIT, entrepreneurs should take several key steps. First of all, it is worth starting with an analysis of the company's current financial and accounting processes to identify areas that need to be adapted to the new requirements.

It is also critical to invest in the right software to generate and upload JPK CIT files in the required format. Companies should also consider training for their employees,
to ensure that they are fully prepared to operate the new system.

It's also a good idea to keep abreast of announcements from the Ministry of Finance and attend industry training courses and conferences, which can provide valuable information on upcoming changes.

Summary

The introduction of JPK CIT is a significant change in the Polish tax system that will affect the operation of many businesses. Although the new obligations may seem difficult to meet, proper preparation
and adjusting financial processes will allow companies to avoid problems associated with the new requirements.

It is crucial for entrepreneurs to start preparations in advance, so that JPK CIT can be implemented smoothly and avoid unnecessary complications in the future.