This publication is part of a comparative study of solutions adopted in the Czech Republic and Poland concerning the taxation of individual business activity with income tax. Despite the fact that both countries are direct neighbors and joined the European Union at the same time, they are assessed completely differently in terms of the state’s attitude towards individual entrepreneurs. The main purpose of this publication is not only to describe the specificity of Czech solutions in this area and compare them with Polish regulations, but also to focus on solutions that have been developed by Czech and Polish legislators. In particular, attention will be paid to the lump sum tax in force in the Czech Republic for over three years and the rules for deducting lump sum expenses by entrepreneurs, the amount of which is distinguished in the international arena. Both of these solutions influence the formation of a phenomenon characteristic of Czech tax law, which is the Švarcsystem. The methodology used by the author refers to the functional approach of the comparative legal method, which refers to the comparison of selected aspects of different legal systems and aims to learn and understand the law in a much broader context. This study can also be treated as a first step towards further in-depth analysis and research, and thus the possible application by the Polish legislator of the structures and solutions present in Czech tax law.

The article aims to analyse selected legal changes introduced by the Act amending certain acts to reduce payment gridlocks. The aforementioned act introduced into the income tax laws the relief for bad debts. The creditor has been given the opportunity to reduce the tax base by the amount of the claim, if this claim has not been settled or disposed of in any form within 90 days from the date of its payment specified in the contract or invoice. The debtor was obliged to add the amount of the unpaid liability to the tax base, if the liability has not been settled within 90 days from the date of expiry of the payment deadline specified in the invoice (bill) or contract. The regulations introduce a catalogue of conditions that must be met for the relief mechanism to apply.