Ministry of Finance seeks to calm SME businesses as CIT tax increases

The Ministry of Finance hopes that the new tax “on large corporations”, announced recently by the government, will bring the budget over PLN 2 billion annually. “Both in the form of contributions to the minimum tax and as a result of the increase in CIT revenues, which will become even more difficult to avoid”, explained Jan Sarnowski, deputy head of the Ministry of Finance. Small and medium-sized Polish business is to be excluded from it – emphasizes the Ministry of Finance.

“The tax will not apply to companies that do not have subsidiaries and whose partners are only natural persons. Such companies in Poland constitute 90 percent of all CIT taxpayers. It is a small and medium-sized Polish business, which will thus be exempt from the minimum tax. In addition, only those companies that record a loss or whose income is less than 1% will pay it. It will be at most a few percent of companies” – assured Deputy Finance Minister Jan Sarnowski.

As he explained, when calculating the ratio of income to income, investments made by individual entities will be taken into account. Investing companies will not be subject to this tax. It will also not affect companies starting a business – both Polish startups and foreign investors – for the first three years of their operation in Poland.

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