Poland’s new tax reform introduces sweeping amendments to corporate income tax, including new rules on hidden dividends, revised minimum tax calculations, and stricter conditions for preferential regimes.
Poland has announced a law on 16 March 2026 that proposes sweeping changes to the Corporate Income Tax (CIT) Act, targeting business definitions, expense deductibility, and specialised tax regimes. These changes aim to refine definitions, introduce new restrictions on deductible costs, and adjust various tax regimes, including the “Estonian CIT” and the minimal tax.
These provisions are expected to enter into force on 1 January 2027.
Small taxpayer threshold and startup definitions
The proposed amendments redefine small taxpayers as businesses with VAT-inclusive revenue not exceeding EUR 2 million in the prior tax year. For fiscal periods shorter or longer than 12 months, this threshold is calculated proportionally using NBP currency rates.
Additionally, companies formed through the conversion of sole proprietorships will no longer qualify as “taxpayers starting a business,” effectively blocking their access to first-year tax incentives under the new Article 4d.
Tighter controls on deductible expenses
The most significant addition is Article 15f, which bars deductions for “hidden dividends”—benefits provided by shareholders (holding at least 5% ownership) or through partnerships. These non-deductible costs include consulting, advertising, management services, legal assistance, intellectual property licensing, and recurring non-cash benefits from partners. Exemptions apply only when such services are taxed as employment income or are indispensable for core production activities without third-party involvement.
Environmental adjustments to vehicle depreciation
Passenger car depreciation limits now depend on CO2 emissions verified through the Central Vehicle Register. The cap is PLN 150,000 for vehicles emitting below 50g/km and PLN 100,000 for those at or above this threshold. Without emission data, a default of 50g/km applies.
IP box and minimal tax reforms
The IP Box regime (taxing intellectual property income at 5%) introduces stricter employment criteria: taxpayers must hire at least three full-time employees for 300 days or incur employment costs triple the national average salary. Related-party employees don’t count toward this requirement.
The minimal income tax calculation is simplified—large businesses (revenue exceeding EUR 50 million) pay 5% of revenue, while smaller entities pay 3%. New exemptions cover electricity, heat, and gas sales.
Estonian CIT system refinements
Poland’s lump-sum tax regime undergoes several adjustments. To remain eligible, companies must meet employment requirements specifically for non-shareholder employees. The definition of “hidden profits” expands to include rent, IP fees, consulting, and legal services paid to shareholders or related parties, while “non-business expenses” now encompass public-law sanctions.
Businesses adopting the Estonian CIT between 2022 and 2026 can retroactively satisfy compliance requirements if they finalise delayed financial statements within one month of the law’s enactment.
The amendments also clarify capital gains taxation for assets received during liquidations of companies formed from corporate transformations within three years, and establish proportional cost calculation methods when share nominal values are reduced.
