Poland: Minimum income tax

Changes in the Polish tax regulations

In brief

What's new?

According to the bill amending tax regulations that was submitted to the Parliament on 8 September 2021, it is planned to implement the so-called minimum income tax. Adopting the bill will have a significant impact on the level of taxation of most corporate income taxpayers from next year.

Despite earlier announcements, the minimum income tax will not be limited only to the largest entities on the market. The tax obligation will apply to all taxpayers who report a tax loss on operating activities (i.e., other than capital gains) in a given year, or have a share of income from operating activities in the revenue from such activities which will not exceed 1%.


Contents

Rates and figures

According to the bill, the minimum income tax will amount to 10% of the tax base, which, as a rule, will be the sum of: 

  • 4% of revenue from operating activities (i.e. other than capital gains), 
  • the financing costs incurred for the benefit of related entities exceeding 30% of EBITDA,
  • the costs of intangible services incurred for the benefit of related entities and entities from tax havens exceeding PLN 3,000,000 + 5% of EBITDA,
  • a deferred income tax resulting from the disclosure of intangible assets

The amount of the minimum income tax will be deductible from the due income tax.      

Exceptions

The following entities are to be excluded from the new tax obligation: taxpayers who start a business (for the next three years), financial enterprises, taxpayers who will achieve revenue lower by 30% than in the previous year and taxpayers with a simple ownership structure, i.e., taxpayers whose shareholders are only natural persons and have no shares in other entities.

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