Changes in the system of KATA from 2021

At the end of June, the Government proposed some amendments to the legislation on the itemised tax of small businesses (“KATA”). One of the main aims of the changes is to prevent and eliminate unlawful tax avoidance practices. Many companies use the KATA system as an alternative to employment, which reduces the tax revenues of the state. Although the changes will only enter into effect from 1 January 2021, it is worth reviewing the expected changes already at this time, with particular attention to the new provisions applicable to payers. This is especially important because the tax authority will not wait until 2021, but will make contracts concluded by payers and employers with small business taxpayers a priority audit area already this year.

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