The due date for Polish minimum CIT is fast approaching

Polish minimum corporate income tax (CIT) is a complex issue, which applies to numerous entities with Polish tax residency and domestic tax capital groups. Firms subject to this tax are those which during the given tax year incurred a loss or achieved a profitability ratio of 2% or less from sources of income other than capital gains. However, the relevant legislation is complex and the accounting loss does not always trigger minimum taxation.

Konrad Medoliński, senior manager, tax adviser in MDDP outlines the key provisions governing the Polish minimum corporate tax, including the scope of its application, exemptions, additional minimum taxes and other related considerations. Our expert highlights also critical upcoming deadlines.

“Given the upcoming deadlines for the minimum CIT payment, taxpayers are urged to assess their tax results promptly to determine applicability under the minimum income tax regime. This tax applies not only to entities reporting losses but also to those with special tax profitability below 2%”.

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