How to Manage a Tax Book (KPiR) in a Small Tech Company: A Comprehensive Guide for 2025
Are you running a small tech company – perhaps developing apps, working on AI software, or designing hardware? If so, you likely want to focus on innovation rather than paperwork. However, managing a Tax Book of Revenues and Expenses (KPiR) is a legal requirement for many small businesses in Poland, including yours. In this guide, I’ll show you how to handle KPiR in a small tech company in a simple, compliant, and stress-free way.
Introduction: What is KPiR and Why Does It Matter
KPiR, or the Tax Book of Revenues and Expenses, is a straightforward method for recording your company’s revenues and expenses to calculate your income tax (PIT). It’s an ideal solution for small tech companies that don’t need to maintain full accounting records – something common in the tech industry, especially for early-stage businesses.
Why is KPiR important? First, it ensures you’re compliant with tax authorities. Second, a well-maintained tax book gives you a clear picture of your finances – you can see how much you’re earning, what you’re spending, and where you can save. In the tech sector, where costs for development or licenses can be significant, this clarity is crucial for success.
Legal Basics: Who Needs to Keep a KPiR and What Are the Obligations?
Who Can Use KPiR?
KPiR is for you if:
- You run a sole proprietorship, a civil partnership, a general partnership, or a professional partnership of individuals.
- Your net revenue from sales in the previous year didn’t exceed 2 million euros (in 2024, that’s 9,218,200 PLN, based on the NBP exchange rate from the first business day of October 2023) [Source: https://infor.pl].
- You settle taxes on the general scale (12% and 32%) or the flat tax rate (19%), but not through the lump-sum tax or tax card [Source: https://poradnikprzedsiebiorcy.pl].
Legal Basis
The rules for maintaining KPiR are outlined in the Regulation of the Polish Minister of Finance on keeping the tax book of revenues and expenses. Key aspects include:
- The format and structure of the book (17 columns).
- The method of keeping it (paper or electronic).
- Documentation of entries (based on invoices, receipts).
- Deadlines for entries (more on that below).
Key Obligations
- Timeliness: You must record entries in the KPiR no later than the 20th of the month following the month in which you earned revenue or incurred a cost [Source: https://podatki.gov.pl].
- Document Retention: Keep invoices and other accounting documents for 5 years from the end of the tax year they pertain to.
- Monthly Summary: At the end of each month, sum up your revenues and expenses – this is the basis for calculating your income tax prepayment.
- Annual Closing: After the year ends, prepare a final summary for your annual PIT return (due by April 30).
- Electronic KPiR Starting 2026: From January 1, 2026, KPiR must be kept exclusively in electronic form and submitted digitally to the tax office (as per art. 24a, sec. 1e of the PIT Act). It’s worth considering a good software now [Source: https://podatki.gov.pl].
Specifics of KPiR in a Small Tech Company
Tech companies have unique characteristics that affect how KPiR is managed. Here’s what to pay attention to:
Typical Revenues
- Sales of digital services, like subscriptions to a SaaS app you’ve developed.
- Software licenses – if you’re selling access to your program, such as an AI tool for data analysis.
- Grants and subsidies for research and development (R&D), which are common in the tech sector.
Typical Expenses
- Hardware and Software: Buying laptops, servers, or licenses (e.g., for AI tools)? If the equipment costs more than 10,000 PLN, you add it to the fixed assets register and depreciate it. Below that amount, it’s a current expense [Source: https://infor.pl].
- Subscriptions and Licenses: Paying for cloud services (e.g., AWS), hosting, or software? These are usually current expenses, but long-term licenses with high value may need to be depreciated as intangible assets.
- Foreign Invoices: In the tech industry, you often work with international partners. Invoices in foreign currencies must be converted to PLN using the average NBP exchange rate from the last business day before the revenue or expense date.
- R&D Costs: Expenses for research and development (e.g., testing a new algorithm) are often significant in tech companies. You can record them in KPiR and use them for R&D tax relief (more on that later).
Inventory Count (Spis z Natury)
Many tech companies don’t deal with physical goods – if you only sell digital services, your inventory count (remanent) will be zero. But if you produce hardware, like educational robots, you must conduct an inventory of goods, materials, and semi-finished products at the beginning and end of the year. Even a zero inventory must be recorded in KPiR [Source: https://infor.pl].
Tools for Managing KPiR in Tech Companies
Running a tech company means you need tools that make your life easier. Here are some reliable options:
- Accounting Software:
- inFakt – a simple tool with features for managing IT projects.
- wFirma – offers automation for repetitive tasks, like invoice booking.
- Fakturownia – integrates with e-commerce platforms, perfect for companies selling digital services.
- Comarch ERP Optima – a more advanced solution for tech firms with bigger needs.
- Integration with CRM and Invoicing: Modern software allows for automatic invoice booking and syncing with CRM systems, reducing the risk of errors. For example, inFakt lets you connect your account to an invoicing system, keeping everything in one place.
These tools not only streamline your work but also prepare you for the future – from 2026, KPiR must be electronic, so it’s smart to choose software compatible with JPK (Jednolity Plik Kontrolny, or Uniform Control File) requirements now.
Accounting Challenges in the IT Sector and How to Overcome Them
Managing KPiR in a tech company isn’t just a formality – it comes with challenges you need to address. Here are the most common ones:
- Accounting for Remote Work: Remote work is standard in IT. You can include a portion of your rent, utility bills, or internet costs, but only proportional to the space used for work (e.g., 20% of your home). Create a remote work policy and documentation to avoid disputes with the tax office [Source: https://poradnikprzedsiebiorcy.pl].
- Training and IT Certifications: The tech industry demands constant upskilling. Costs for courses and certifications (e.g., AWS or Google Cloud) can be recorded in KPiR if they’re related to your business and help generate revenue.
- Server and Infrastructure Costs: Leasing servers counts as a current expense, but if you buy a server worth more than 10,000 PLN, you must depreciate it as a fixed asset. Fees for server colocation are also current expenses.
- Depreciation of Intangible Assets: Developing your own software? You can depreciate it over 24 months, unless the license is for a fixed term – then you depreciate it over the term of the agreement [Source: https://infor.pl].
Tax Optimization: Reliefs for Tech Companies
In the tech sector, you can save a lot on taxes if you make the most of available reliefs. Here are the key ones:
- IP Box Relief: If your company creates software, patents, or know-how, you can pay just 5% tax on income from these intellectual property rights. The key is maintaining separate records for such income – without them, the tax office might challenge your claim [Source: https://podatki.gov.pl].
- R&D Relief (Ulga B+R): Are you conducting research and development, like testing a new algorithm? You can deduct R&D costs (e.g., team salaries, equipment) twice: once as a current expense, and again under the R&D relief. For small businesses, the deduction can be up to 150% of costs [Source: https://podatki.gov.pl].
- Other Opportunities:
- One-Off Depreciation: New fixed assets (e.g., IT equipment) valued between 10,000 and 100,000 PLN can be depreciated in one go if they meet the criteria [Source: https://podatki.gov.pl].
- Innovation Grants: Check out programs from PARP and NCBiR – they offer support for innovative projects that can reduce your costs.
Practical Tips: How to Manage KPiR in a Tech Company?
Managing KPiR in a tech company doesn’t have to be hard if you stay organized. Here’s a schedule and some tips:
Schedule of Duties
- Daily:
- Issue and record sales invoices.
- Document expenses (e.g., invoices for cloud services, licenses).
- Monthly:
- By the 20th: Update KPiR for the previous month and pay your income tax prepayment.
- By the 25th: Submit VAT declarations and JPK if you’re VAT-registered.
- Yearly:
- By January 31: Conduct an inventory count (even if it’s zero).
- By January 31: Submit PIT-11 for employees (electronically via e-Deklaracje) [Source: https://podatki.gov.pl].
- By April 30: File your annual PIT return.
Preparing for a Tax Audit
Tech companies, especially those using tax reliefs, may face more frequent audits. How to prepare?
- Keep detailed documentation (e.g., invoices, contracts).
- For IP Box and R&D reliefs, maintain separate records of related revenues and costs.
- Archive documents electronically – it’ll make audits easier.
Working with an Accounting Firm
If you don’t have time for KPiR, outsource it to an accounting firm. Choose one that:
- Has experience with IT companies.
- Understands tax reliefs for the tech sector (IP Box, R&D).
- Uses modern communication tools (e.g., wFirma, inFakt).
Common Mistakes in KPiR Management and How to Avoid Them
Managing KPiR can lead to mistakes that might cost you stress or penalties. Here’s what to watch out for:
- Misclassifying Expenses: You buy a server for 15,000 PLN and record it as a current expense? That’s a mistake! If the value exceeds 10,000 PLN, it’s a fixed asset – you need to depreciate it. Create an accounting policy and consult an accountant if unsure.
- Skipping the Inventory Count: Even if you don’t have physical goods, a zero inventory count at the beginning and end of the year is mandatory.
- Not Documenting Remote Work Costs: Want to include part of your internet bill as a cost? Prepare a remote work policy and calculate the proportion (e.g., 20% for business use). Without this, the tax office might disallow the expense.
- Poor Documentation for Tax Reliefs: Using the IP Box relief but not keeping separate records of software-related income? That’s asking for trouble. Keep detailed project and financial records.
Summary: KPiR in a Tech Company, Demystified
Managing KPiR in a small tech company might seem daunting, but with this guide, you’ve got it covered. Key points to remember:
- Accurately record expenses – especially tech-specific ones like R&D, licenses, or cloud computing.
- Take advantage of reliefs – IP Box and R&D can significantly lower your tax bill.
- Prepare for 2026 – from that year, KPiR must be electronic, so choose a good software now.
- Maintain proper documentation – crucial if you’re claiming reliefs or working remotely.
- Get expert support – an accounting firm experienced in IT can be invaluable.
Proper KPiR management isn’t just a legal requirement – it’s a tool for better financial oversight of your company. Ready to get started? Download a free KPiR template from Poradnik Przedsiębiorcy and take action! Do you have your own experiences with KPiR in a tech company? Share them in the comments – I’d love to hear your stories!
