Polish parliament implements lower CIT (corporate income tax) since January 2019. Firstly CIT for a small and medium company was reduced to 9%. Small and medium company according to Polish law is a company which yearly revenue is no more than 1.2 mln Euro. If during the year company achieve that level then will pay regular level of tax 19% from total income. It is unfavourable change compare previous regulation.
Another interesting change in Polish law concerns companies which develop new technologies. For that companies, Polish law predicts special tax relief called innovation box (IP box). The company who use IP box will pay only 5% CIT even if their revenue exceeds 1.2 mln Euro. This tax relief is designated primarily for software developers but also for companies which have industrial property law like a patent or other. Companies can benefit from this regulation if they meet two conditions:
– conduct research and development activities directly binding with an innovative product,
– will keep detail accounting record related to that product.
If you have any question about taxation in Poland, please contact us.