How corporate income tax is settled in Poland?

Applicability and entities covered by the CIT 

The obligation to pay corporate income tax in Poland falls on limited liability companies, joint stock companies and their branches, as well as on Polish tax residents and certain non-residents who earn income in Poland. INTERTAX helps clients determine their tax status and responsibilities and obligations.

CIT tax - standard and reduced rate 

The standard CIT rate is 19% of income, which is the main form of corporate taxation However, smaller entities - with revenues not exceeding the equivalent of EUR 2 million - can also benefit from a reduced rate of 9%, provided they meet formal criteria (among other things: no affiliation with a capital group). INTERTAX carefully verifies the status of a “small taxpayer” and corrects the method of settlement

Estonian CIT - an alternative taxation system 

Another option is the Estonian CIT, i.e. taxation only when profits (dividends) are distributed. For small businesses, the rates are 10% or 20%, respectively, depending on the size and structure of the company. INTERTAX supports entrepreneurs in analyzing the benefits and in formally transitioning to this system. It is especially recommended for entities reinvesting profits and building capital liquidity.

Minimum CIT from 2024 

As of January 1, 2024, Poland has a new mechanism, the minimum CIT. It imposes a minimum tax of 10% on companies with low profitability (operating profit ≤ 2% of revenue) or making losses. The basis for calculation is, among other things, 1.5% of operating income and costs of intangible services related to non-EU entities. INTERTAX helps prepare simulations of both methods (basic and simplified - 3% of revenues) - thus improving strategic decisions.

Tax base and how to calculate it

 In determining the tax base, the starting point is the financial result according to the Accounting Act, which is then adjusted for items not recognized as tax expenses (including representation and interest over the 30% EBITDA limit) and exempt income (for example: participation dividends). INTERTAX precisely analyzes these items to minimize the risk of adjustments and tax penalties.

Special mechanisms: dividends, interest and royalty 

A tax expense of 19% is applied to dividends (except for exemptions with a minimum of 10% participation for at least two years), while a rate of 20% is used for interest and license royalties transferred to non-residents. INTERTAX helps its clients understand the impact of international double taxation treaties and obtain favorable rates in accordance with DTT conventions.

Reporting - deadlines and documentation

 CIT is usually settled for an annual period, with the possibility of monthly or quarterly settlements. Annual returns (form CIT-8) are usually submitted by the end of the third month of the following year. In addition, as of 2025, more and more companies are required to submit detailed JPK_KR data under SAF-T. INTERTAX provides a full service for electronic reporting - eliminating problems of timeliness and formal-legal compliance.

Tax optimization and structure planning 

For companies benefiting from tax credits, INTERTAX develops comprehensive CIT optimization strategies. The advice takes into account, among other things, R&D credits, depreciation and holding structures (benefiting from exemptions on dividends). The goal is to take advantage of the full potential of the reliefs and minimize the total tax liability.

Why work with INTERTAX on CIT? 

INTERTAX is a team of experts with years of experience and legal knowledge, adapted to legislative changes and international practices. As a result, companies avoid costly mistakes and take advantage of available tools, thanks to which they are able to increase their competitive advantage in the market and enhance their financial stability. Servicing and advising on corporate income tax in Poland is a daily activity for INTERTAX, covering all relevant elements of CIT: rates, minimum tax, Estonian CIT, settlements, reporting and optimization strategies. For more information, visit: https://polishtax.com/information/polish-tax-law/cit/. Contact INTERTAX today for the assurance of proper tax settlement and full security of doing business in Poland.