- Statutory Tax Rate19
- Surtax Based on Taxable Income0
- Surtax Based on Statutory Tax0
- Surtax Deductible from Taxable Income0
- Statutory Tax Deductable0
- Effective Tax Rate19
Statutory Tax Rate
The standard corporate income tax rate is 19%. From 1 January 2019, a reduced corporate income tax rate of 9% applies for small taxpayers with annual sales below the PLN equivalent of EUR 2.0 million (increased from EUR 1.2 million effective from 1 January 2020) as determined by Poland's National Bank, and for start-ups for the first year of operations. The reduced rate is not available for new operations resulting from the restructuring of a former taxpayer.
Effective 1 January 2021, a new optional corporate tax regime is introduced, which provides the following two alternative models:
- Distribution Tax Model - Companies may opt to be subject to a flat tax primarily when profits are distributed. The tax base for the distribution tax includes specified income namely, income from distributed profits, hidden profit distributions, etc. The regime is available for stock companies and limited liability companies with natural persons as shareholders, subject to certain conditions. Effective 1 January 2022, the regime is extended to limited partnerships, limited joint-stock partnerships, simple joint-stock companies, and cooperatives. The distribution tax model may be opted from the tax year beginning after 31 December 2020 for four years. The rate is 10% (reduced from 15% effective 1 January 2022) for qualifying small taxpayers and 20% (reduced from 25% effective 1 January 2022) for other taxpayers. Until 1 January 2022, an additional 5% tax also applied when the income exceeded the threshold of PLN 100 million;
- Deductible Investment Model - Companies are taxed under the standard corporate tax regime but are allowed to allocate funds to a special investment reserve that is fully deductible for corporate tax purposes. This model is generally available for companies that meet the conditions for the distribution tax in a tax year, with the funds for the reserve to be allocated out of profits made for the year preceding the tax year. This is also subject to certain investment conditions.