Poland reduced its corporate income tax rate from 19% to 15% for small and medium sized companies. The change was included in the amended Corporate Income Tax Act and will be beneficial for all start-ups in Poland as well as small corporate taxpayers. Our lawyers in Poland are able to tell you more about this change but also about the other provisions included in the new amendments.
The reduced corporate tax rate in Poland
The amended Tax Law in Poland
favors small businesses and start-ups in the country, as one of its most significant amendments includes a reduction of the corporate income tax
for these types of taxpayers.
Those companies that have a gross sales value below 1,2 million EUR benefit from a reduced corporate income tax rate: 15% instead of the usual 19%. This also applies to companies in Poland, which are in their first year of business. An exception to this rule is in place: companies that are formed through corporate restructuring do not benefit from this reduced rate.
The law amending the previous corporate tax rules became effective as of 2017. For detailed information on taxation for various types of companies, you can talk to one of our attorneys in Poland
Other changes brought to the Corporate Income Tax in Poland
Five other mentionable changes were brought to the Polish Corporate Income Tax Act. These include a new definition for recognized Polish-source income. This is important for foreign investors, like non-Polish residents
but also for those who wish to benefit from the provisions of the double tax treaties. Other changes are related to beneficial ownership, the anti-avoidance rules and the taxation of contributions that are made in-kind. With the new changes, the cancellation of shares for a company in Poland will also include the reduction of the nominal share value.
Our lawyers in Poland can tell you more about these amendments and how they are likely to influence your business in the country.
for more information about the taxation laws and corporate matters.