Taxation of individual business activity of natural persons in Poland and the Czech Republic – selected issues

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.

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