If you are a streamer and gain on platforms specified as Twitch or YouTube, you must be ready for changes in taxation regulations that can affect your income. The fresh explanation of the manager of National taxation Information (KIS) introduces crucial changes in the method of taxation of "donates" (voluntary contributions from viewers), which may lead to crucial costs and complications. Find out what has changed in the regulations, how to prepare and what the consequences may be.
What's fresh in Taxing the Donetsks?
New explanation of Rules
Until now, ‘donates’ have been treated as non-taxable donations, provided that the sum of donations from 1 individual did not exceed PLN 5733 in 5 years. In the fresh approach, the Donnets will be treated as gross to be taxed.
Why have the Rules been changed?
The revised explanation results from difficulties in verifying the identity of donors, which makes it impossible to control compliance with donation limits. The fresh rules aim at harmonising taxation rules and greater transparency in the industry.
What are the fresh Obligations for Streamers?
1. gross Taxation
Streamers will now gotta account for 'donates' in accordance with general income taxation rules. In practice, this means paying income taxation on each payment. Possible forms of taxation are:
- Economic activities:
- 12% to PLN 120 000 per year
- 32% of surplus over PLN 120 000 per year
- Alternatively, a linear taxation of 19%
- Work Agreement / Order:
- 12% to PLN 120 000 per year
- 32% of surplus over PLN 120 000 per year
- A flat-rate of recorded revenue:
- 15% for service activities
- 8.5% for selected service activities
2. Accounting requirements
Streamers will gotta evidence their revenues more accurately and study all ‘donates’ in taxation settlements. Accurate accounting will be essential to avoid errors and possible penalties.
Costs and Exceptional Challenges
Costs of Accounting Services
The addition of the taxation work for ‘donates’ may entail additional costs. The average cost of accounting services in Poland varies from PLN 200 to PLN 500 per month, depending on the scope of services and the location of the office. In more complicated cases costs can increase to 800-1500 PLN per month.
Tax advisory costs
The cost of preparing the taxation return by the taxation advisor is about PLN 180 per hour. Streamers who conduct business activities may incur additional costs related to consultation.
Odds for deductions
Some expenses related to moving a streaming channel, specified as hardware or software, may be deducted from tax. However, the financial documentation should be kept in detail, which may entail additional costs or work.
How to Prepare for fresh Recipes?
1. Take care of Documentation
Make certain all gross and expenditure is accurately documented and stored. It is worth keeping a detailed registry of ‘donates’ and another sources of income.
2. Consultation of the taxation Advisor
Consider consulting a taxation advisor, which will aid to optimise income accounting and choose the most favourable form of taxation.
3. Prepare for Controls
Be ready for possible taxation checks. Regular financial reviews and strict compliance will aid avoid problems.
The fresh taxation explanation on "donates" importantly changes the rules on accounting for streamers. The request to taxation any deposit may affect the finances of many online developers, so it is worth preparing for these changes. Accurate documentation, consultation with taxation advisors and compliance will aid avoid costly errors and penalties.
Read more:
Attention, Streamers! fresh IRSs can change your finances – See what you request to know
