Navigation path

Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Taxation of Partnership Limited by shares 2014/01/01
Results 1 - 1 of 1.

Generic Tax Name Corporate income tax
Tax name in the national language Podatek dochodowy od osób prawnych
Tax name in English Corporate income tax
Member State PL-Poland
Tax in force since 1992/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other
Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other
Social security contribution Employers
Employees
Other
 
Legal base

Act of 15 February 1992 on legal persons' income tax (Consolidated text: Journal of Laws of 2011, No. 74, item 397 with subsequent amendments).
 
Who sets
The tax rate is set by



The tax base is set by



The reliefs are set by




Comments
 
Beneficiary





Comments

22.86% of the revenues from CIT is a share of the local authorities.
 
Geographical Scope

Territory of Poland.
 
Taxpayers
Domestic-source income of non-resident entities is Taxed
Not Taxed
Comments

Taxpayers are:

  • Legal persons and companies in organization,
  • Partnership limited by shares,
  • Organizational units having no legal personality, except for civil, registered, professional and limited partnerships,
  • Tax capital groups,
  • Companies having no legal personality having their seat or management office in other countries provided that in their country they are treated as a legal persons and are subject to tax liability on income, irrespective of the place where it is earned. 
 
Tax object and basis of assessment
As general rule, taxable income under corporate income tax includes also








Comments

Revenues derived from all sources.

However, certain types of income are not subject to income tax. These include income from agricultural activities, which is generally understood as production of unprocessed plant and animal products on a farm, income from forestry, revenues (income) from ship-owner activity falling under provisions of tonnage tax, income resulting from activities which cannot be the subject of legally effective contract. However, income from special branches of agriculture (including breeding of certain animals and mushroom cultivation) is subject to income tax.

Furthermore, the CIT act exempts certain types of income from income tax. These include, i.e.:

  • income received by taxpayers from governments of foreign countries, international organizations or international financial institutions (including EU research programmes, technical developments programmes and NATO programmes), from non-returnable foreign aid funds granted on the basis of a unilateral declaration or agreements concluded with these countries, organizations or institutions;
  • direct payments applied under the Common Agricultural Policy of the European Union;
  • income earned outside the territory of the Republic of Poland by the resident taxpayers, if an international agreement to which the Republic of Poland is a party, provides so;
  • income of ecclesiastical legal persons or incomes of companies whose sole shareholder is a ecclesiastical legal person designed for the religious, charity, educational and so on activities;
  • income of the local government units associations - in part designed for these units;
  • housing cooperatives' income - in part designated for purposes related to maintenance of housing resources.

 
Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Residents

Taxpayers who have their seat or management office within the territory of Poland shall be liable to pay tax on the entirety of their income regardless of where they have been generated.

Non-residents

Taxpayers who have not their seat or management office within the territory of Poland shall be liable to pay tax only on income generated in the territory of Poland.
Comments

  
 
Deductions, Allowances, Credits, Exemptions
Valuation of inventory
System First-in first-out (FIFO)
Last-in first-out (LIFO)
Average cost
Specific identification (unit method)

Comments
Depreciation rules
 
Buildings
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Average depreciation rate

1.50 – 10.00  %

The declining balance method is in certain circumstances applicable.
Average depreciation period
Average depreciation rate
 
Movable (tangible) assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

The declining balance method is in certain circumstances applicable.
Average depreciation period
Average depreciation rate 20.0 %
 
Movable fixed assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Average depreciation rate

4.50 – 20.00  %

The declining balance method is in certain circumstances applicable.
Average depreciation period
Average depreciation rate
 
Intangible assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate
 
Land (if any)
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate

Comments
Are there limits to interest deductions? Yes No
If yes:
Definition of deduction limit

Comments

Thin capitalization rule.
Is there an Allowance for Corporate Equity? Yes No
If yes:
Notional rate applied for allowance

Comments
Losses
Loss carry-forward exists? Yes No
If yes:
Time limit: Indefinite
5  Years  
Size limit:
 
Loss carry-backward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 

Comments

Losses may be carried forward to the following five tax years to offset profits from all sources that are derived in those years. Up to 50% of the original loss may offset profits in any of the five tax years.

Comments

Tax exempted are:

  • 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;
  • voivodeship funds for environmental protection and water management;
  • international enterprises and other economic entities founded by a State administration authority together with other states, by virtue of an agreement or a contract, unless such agreements or contracts provide otherwise;
  • 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;
  • investment funds operating under the provisions of the Act of 27 May 2004 on Investment Funds;
  • institutions for collective investment having its seat in member state of the European Economic Area, other then Republic of Poland, provided that they meet altogether the following conditions:
    • they are liable to tax on their entire income in the state of their seat regardless of where the income has been generated,
    • the sole object of their activity is collective investment of funds, raised from the publicly or non-publicly offered units, in securities, money marked instruments and other property rights,
    • they perform their activity upon a formal permission issued by competent supervision authorities of financial market in the state in which they have a seat or performance of  this activity requires notification of these authorities in case collective investment institutions of closed-end type and according to articles of incorporation their units are not publicly offered or authorized to sale on regulated market and these units can be acquired also by natural persons exclusively when these persons make one-time acquisition of units at the value no less than 40 000 euro
    • their activity is subject to direct supervision of competent authorities over financial market in the state in which they have a seat,)
    • the assets of a institution is entrusted to a depositary for safe-keeping,
    • they are managed by companies that conduct an activity upon a permission issued by competent supervision authorities of financial market in the state in which they have a seat,)
  • retirement pension funds established by virtue of the provisions on the organization and functioning of retirement pension funds;
  • taxpayers having its seat in member state of the European Economic Area, other thenRepublicofPoland, that conduct a retirement scheme, provided that they meet altogether the following conditions:
    • they are liable to tax on their entire income in the state of their seat regardless of where the income has been generated
    • they perform their activity upon a formal permission issued by competent authorities in the state in which they have a seat
    • their activity is subject to supervision of competent authorities in the state in which they have a seat,
    • the assets of a taxpayers are entrusted to a depositary for safe-keeping
    • the sole object of their activity is collection and investment of funds in order to make a payment to the participants of a retirement scheme after they have reached retirement age;
  • Social Insurance Institution referred to in the Act of 13 October, 1998 on Social Insurance System;
  • Demographic Reserve Fund referred to in the Act of 13 October 1998 on Social Insurance System;
  • Agricultural Immovable Property Agency;
  • Agency for Material Reserve
  • National Health Fund.
 
Rate(s) Structure
Nominal corporate income tax rate Rate: 19.00 %
Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate: 19.00 %

Comments
Special tax rate for SMEs
Special tax rates apply to SMEs: Yes No
If yes:
Nominal corporate income tax rate Rate:
Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate:

Comments
 
International aspects
Treaty countries Non-treaty countries
 
Repatriated profits are taxed according to the following system Exemption system Exemption system
Tax credit Tax credit
Deduction Deduction
 
Interest received is taxed Yes No Yes No
Tax rate on interest received 19.00 % 19.00 %
Outgoing dividends withholding tax 15.00 % 19.00 %
Outgoing interest payments withholding tax 20.00 % 20.00 %
 
Foreign losses can be set-off Yes No Yes No
If yes:
Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
 
Loss carry-forward exists? Yes No Yes No
If yes:
Time limit: Indefinite
5  Years   		Indefinite
5  Years  
Size limit:
 
Loss carry-backward exists? Yes No Yes No
If yes:
Time limit: Indefinite
  		Indefinite
 
Size limit:
 
Controlled foreign company (CFC-)rules exist? Yes No Yes No
If yes:
Time limit: Indefinite
  		Indefinite
 
Size limit: 250.00  EUR/Natcur 250.00  EUR/Natcur
 
Threshold for capital or voting power held directly or indirectly by resident in non-resident company 25.00 %
CFC-rules apply if foreign tax rate is lower than 25.00 % 25.00 %
CFC-rules apply for passive income only? Yes No Yes No

Comments   Treaty countries

The withholding tax rate for outgoing dividends is from 0% to 15% and for outgoing interest payment from 0% to 20%.

There are no specific rules concerning repatriated profits

As far as loss carry-forward is  concerned, size limit of 50% is for one tax year.

Comments   Non-treaty countries

There are no specific rules concerning repatriated profits.

As far as loss carry-forward is  concerned, size limit of 50% is for one tax year.

In case of CFC rules we do not apply thresholds for capital or voting power and other requirements applied to treaty countries.  
 
Measures against profit shifting
 
Do Thin Capitalization (TC) rules exist? Yes No
If yes:
Date of first introduction
1998/11/20
Introduced as Explicit TC law
Part of CIT law
Test for TC Ratio
Arm's length
If ratio
Value of numerical ratio: 1 : 1
Definition numerator
Definition denominator initial capital
 
Debt considered for test Internal
Internal and external
TC depends on shareholding? Yes No
Substantial shareholding threshold 25.00 %
 
Type of shareholding Direct
Indirect
Automatic remedy Yes No
Remedy Non-deductibility of interest
Reclassification as dividend
 
Rules apply to All companies
Foreign companies
Non-EU companies
Transfer pricing rules exists? Yes No
If yes:
Arm’s length principle applied? Yes No
 
Remedy Fee
Tax base increase
 
Tax due date

The tax is to be paid in monthly (for all companies) or quarterly (for small enterprises and start-ups) advance payments. The tax return is submitted by the end of the third month following the tax year.
 
Tax collector

Due tax is to be paid to the competent tax authority (local tax office).
 
Special features

Tax exemptions are granted for certain activities carrying on in the Special Economic Zones.

Since 1.1.2015 taxpayers has the right to choose between two option for TC. First option is based on revised current method, and the second is a new, alternative method.

The old one method - Debt-to equity limit for deductibility of interest on the loans from qualified entities is generally to be set a 1:1 level (before 3:1), ‘equity’ will include share capital but also reserve capital, retained profits, etc.

Alternative method will affect tax deductibility of interest on loans from related and unrelated entities. The method sets an interest deductibility limit in reference to two indicators:

  • the total tax deductible interest may not exceed the ‘tax value of assets’ multiplied by the repo rate set by the National Bank of Poland (currently the rate is at 2,5%) + 1,25%; and
  • in a given year, total interest deductible may not exceed 50% of the profits from

operating activities.
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51o (d51b + d51c2)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 34,002.00 PLN 2.09
2011 31,744.00 PLN 2.03
2010 28,253.00 PLN 1.96
2009 30,785.00 PLN 2.26
2008 34,551.00 PLN 2.71
2007 32,383.00 PLN 2.73
2006 25,405.20 PLN 2.38
2005 24,416.00 PLN 2.48
2004 20,521.80 PLN 2.21
2003 15,198.00 PLN 1.80
2002 16,535.10 PLN 2.04
2001 14,577.10 PLN 1.87
2000 18,080.20 PLN 2.42

Comments