Direct taxes - Corporate Income Tax

    Generic part

    Corporate income tax
    Podatek dochodowy od osób prawnych
    PL - Poland
    PLN
    Date
    Year
    1992/01/01
    2018/01/01
    2018/10/26 13:39:02

    Contact information

    Administration

    Service

    Website

    E-mail

    Telephone

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    PL - Poland
    No Yes

    Taxpayers

    Which entities are liable for CIT?

    • Legal persons
    • Organizational units having no legal personality
    • Tax capital groups
    • Associations
    • Foundations
    • Companies having their seat or management office in other countries, provided that in their country they are treated as legal persons and are subject to tax on income
    • Public corporations
    • Others

    Which entities are exempt from CIT?

    For example:
    - State Treasury;
    - National Bank of Poland;
    - State budget entities;
    - national special-purpose funds referred to in the Act of 27 August 2009 on public finance;
    - National Fund for Environmental Protection and Water Management;
    - territorial self-government units with respect to incomes referred to in the Act on Incomes of Territorial Self-government Units;
    - Agency for Restructuring and Modernizing the Agriculture;
    - Agency of Agricultural Market.

    Domestic-source income of non-resident entities is

    Taxed
    Not Taxed

    Tax object and basis of assessment

    As general rule, taxable income under corporate income tax includes also

    • Interest
    • Royalties
    • Dividends
    • Capital gains
    • Income from immovable property
    • Income from movable property not listed above
    • Income from agriculture

    Income considered

    Domestic income
    Worldwide income (subject to double-tax relief)

    Deductions, allowances, credits, exemptions

    Valuation of inventory

    • First-in first-out (FIFO)
    • Last-in first-out (LIFO)
    • Average cost
    • Specific identification

    Depreciation rules

    Buildings

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Other fixed immovable assets (e.g. machinery)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    10 %

    Movable (tangible) assets (e.g. cars, furniture, work equipment)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Intangible assets (e.g. patents)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Land (if any)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Are there limits to interest deductions (other than thin capital rules)?

    No Yes

    Is there an Allowance for Corporate Equity?

    No Yes

    Exemptions from taxable income

    No Yes
    • Income from participations (dividends)
    • Patents income (e.g. patent boxes)
    • Other, please describe
    Certain types of income of resident companies are exempt from income tax, such as qualified dividends, subventions from national or local authorities, and certain grants from foreign governments and international organizations (e.g. NATO and European Union).

    Expenses that are generally not deductible:

    Non-deductible expenses include, inter alia:
    - dividends;
    - expenses incurred on the acquisition of land or perpetual usufruct rights to land, except for periodical payments for perpetual usufruct;
    - expenses incurred on the acquisition and production of fixed assets and intangibles;
    - car depreciation allowances in respect of that part of the value of the vehicle which exceeds the equivalent of EUR 20,000;
    - interest on accrued but unpaid liabilities.

    Losses

    Loss carry-forward exists?

    No Yes
    • Indefinite
    5 Years

    Loss carry-backward exists?

    No Yes
    • Indefinite

    Tax credits available?

    No Yes
    • For research and development investments
    • For training
    • Other, please describe:

    Rate(s) Structure

    19 %
    19 %

    Special tax rate for SMEs

    No Yes
    15 %
    15 %

    Measures against profit shifting

    Do Thin Capitalization (TC) rules exist?

    No Yes
    1998/11/20
    • Explicit TC law
    • Part of CIT law
    • Arm’s length
    • Ratio
    1 : 1
    Income - Interest income
    Costs - Depreciation - Debt financing costs
    Internal
    Internal and external

    TC depends on shareholding?

    No Yes
    Direct
    Indirect

    Automatic remedy

    No Yes
    • Non-deductibility of interest
    • Reclassification as dividend
    All companies
    Foreign companies
    Non-EU companies

    Transfer pricing rules exists?

    No Yes
    No Yes
    • Fee
    • Tax base increase

    Special features

    Is group taxation available?

    No Yes

    Is there a specific anti-avoidance provision in the legislation?

    No Yes

    International aspects

     
    Treaty countries
    Non-treaty countries
    Repatriated profits are taxed according to the following system
    • Exemption system
    • Tax credit
    • Deduction
    • Exemption system
    • Tax credit
    • Deduction
    Interest received is taxed
    No Yes
    No Yes
    Tax rate on interest received
    19 %
    19 %
    Outgoing dividends withholding tax
    15 %
    19 %
    Outgoing royalty payments withholding tax
    10 %
    20 %
    Outgoing interest payments withholding tax
    10 %
    20 %
    Foreign losses (of either subsidiaries or permanent establishments) can be set-off
    No Yes
    No Yes
    If yes :
    Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
    Loss carry-forward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Loss carry-backward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Controlled foreign company (CFC-) rules exist?
    No Yes
    No Yes
    If yes :
    Time limit:
    • Indefinite
    • Indefinite
    Size limit
    Threshold for capital or voting power held directly or indirectly by resident in non-resident company:
    50 %
    50 %
    CFC-rules apply if foreign tax rate is lower than:
    19 %
    19 %
    CFC-rules apply for passive income only?
    No Yes
    No Yes

    Tax due date

    When has the tax return to be filed

    • 3 months after closing of the tax period
    • 6 months after closing of the tax period
    • Later than 6 months after closing of the tax period
    • Date set by the Authority
    • Other
    • Extensions of the deadline are possible

    Advance tax payments due?

    No Yes
    • Monthly
    • Quarterly
    • Bi-annual
    • Annual
    • Other

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d51o
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2016
    34,180
    1.8365 %
    5.4765 %
    2015
    33,104
    1.8389 %
    5.6844 %
    2014
    30,040
    1.7461 %
    5.4802 %
    2013
    29,351
    1.7714 %
    5.546 %
    2012
    33,863
    2.0782 %
    6.4789 %
    2011
    31,649
    2.0199 %
    6.3422 %
    2010
    28,125
    1.946 %
    6.1943 %
    2009
    30,716
    2.2384 %
    7.1747 %
    2008
    34,485
    2.6814 %
    7.8595 %
    2007
    32,324
    2.7218 %
    7.8614 %
    2006
    25,468
    2.3806 %
    7.0829 %
    2005
    21,057
    2.126 %
    6.4503 %
    2004
    18,124
    1.9424 %
    6.0855 %
    2003
    14,804
    1.75 %
    5.3864 %
    2002
    16,010
    1.975 %
    5.9788 %
    2001
    13,961
    1.7899 %
    5.4413 %
    2000
    17,853
    2.3899 %
    7.2562 %

    Footnotes