Poland. Tax and legal news. January 2022

Main changes to the corporate income tax (“CIT”) in Poland from 01.01.2022 (due to the introduction of the so-called Polish Deal)

• Income of CIT taxpayers (not applying the so-called Estonian CIT, i.e. lump sum on company income) is subject to corporate income tax in 2022 - as a rule, at the rate of 19% or 9%.
• The condition for applying the 9% rate is that the revenues achieved in a tax year (i.e. in 2022, if it coincides with the calendar year) do not exceed the amount expressed in PLN, corresponding to the equivalent of EUR 2 million, converted according to the average EUR exchange rate announced by the National Bank of Poland on the first business day of the tax year, rounded to PLN 1,000. This amount, converted into zlotys at the exchange rate from 3 January 2022 (PLN 4.5889 / EUR, table 001 / A / NBP / 2022), amounts to PLN 9,178,000.
• Taxpayers who continued operations started in previous tax years, in order to determine the right to a reduced 9% CIT rate, should take into account two different revenues from two different tax years and compare with two different, albeit similar limits (resulting from the conversion of the amount of EUR 2 million at the average NBP exchange rate from two different dates).
• Exceeding the threshold of revenues entitling to the 9% rate results in the fact that the taxpayer is obliged to calculate advances at the higher rate of 19% starting from the month in which the excess was made. In the period (month / quarter) in which the sum of revenues exceeds the limit of EUR 2 million, it is no longer possible to apply the 9% rate.
• The tax authorities confirm that the taxpayer is then not obliged to correct (or "compensate") the monthly advances paid from the beginning of the year until the limit is exceeded.
• The changes relate to the payment of CIT. They apply to all companies conducting business in Poland.