Corporate income tax in Poland

CIT rates in Poland

The preferential corporate income tax rate in Poland for 2022 is of 9% for companies whose income did not exceed €2,000,000. The same preferential rate applies to companies who have just started their business activity, but only during their first fiscal year. For other companies, the standard CIT rate for 2022 is of 19%.
Compared to other European countries, this rate is particularly attractive.

Scope of application

Any company with legal personality is subject to corporate income tax. As an exception, branches of foreign companies, although deprived of legal personality, are subject to corporate income tax.

Companies who have their registered office or management body in Poland considered as polish tax residents, are subject to tax on their worldwide income. Non-residents are taxed, on the other hand, only on their Polish-sourced income.

Determination of taxable gain

Taxable income is the net profit resulting from the difference between income and tax-deductible costs.

Losses can be carried forward for the next five years. However, the deduction per one tax year cannot exceed 50% of the loss.

Regarding transfer pricing, the tax authorities may require companies to provide any information and documentation proving that prices applied between related legal entities correspond to market prices.

Exemption

Income taxed in Poland is exempt from corporate income tax in France, pursuant to the agreement of 20 June 1975 with France on the avoidance of double taxation in respect of income and wealth tax..

Similar bilateral tax agreements have been signed with numerous European and non-European countries.