KPiR

Księga Przychodów i Rozchodów (KPiR) is a tax record used in Poland by individuals conducting business to document revenues (przychody) and deductible expenses (koszty uzyskania przychodów). It is a simplified form of accounting designed for taxpayers who operate under the general rules of taxation (zasady ogólne) or the flat tax (podatek liniowy) and do not use full accounting.

The KPiR is used to determine taxable income: the amount of tax due is calculated as total revenues from business activity minus deductible costs, including costs for operating the business, depreciation of fixed assets, and other allowable expenses. Some costs have limits or special rules in their deduction. The book records entries chronologically and by type, reflecting sales, purchases, services rendered, and other business activities. VAT records are kept separately from the KPiR.

Implementation and requirements: The KPiR can be maintained in paper form or electronically. It must be kept for five years from the end of the tax year to which it relates and must be available for review by tax authorities if requested. The form and rules governing KPiR are established by Polish tax law, principally the Personal Income Tax Act and related regulations.

Who uses it: Small business operators such as sole proprietors and certain partnerships that opt for general or linear taxation and do not use full accounting or revenue-based regimes like ryczałt. The KPiR provides a structured way to track income and costs for tax purposes.