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/ Taxes and Law in Poland

Corporate Income Tax (CIT) reduced to 15%

Date30 Jan 2017

From the beginning of 2017, the Corporate Income Tax (CIT) on companies which are classified as so-called small taxpayers was reduced from 19% to 15%.

A small taxpayer will be companies which have achieved revenue from the previous tax year lower than the Złoty equivalent of 1.2 million EUR. The value is inclusive of the amount of the VAT.

The scheme excludes newly established companies. In accordance with Article 7 of the amendment to the Income Tax Act, restrictions have also been imposed on companies that have reorganised the corporate structure or artificially adjusted their business activities for the purpose of using the reduced tax rate.

According to estimates by the treasury, some 400,000 taxpayers liable for CIT will benefit from the reduced tax rate. The impact on the state fund resulting from the new arrangement is estimated to be a reduction in tax revenues of around 300 million PLN.