Corporate Income Tax (CIT) in Poland – Rates, Rules & Compliance Guide

Corporate Income Tax in Poland applies to both Polish and foreign companies earning income in the country from business activities, investments, or capital gains. 

The standard CIT rate is 19%, with a reduced 9% rate for small taxpayers, and other special rates for certain types of income like IP, real estate, or cross-border services. 

This blog explains everything you need to know about Corporate Tax in Poland.

What Is Corporate Tax in Poland?

Corporate Income Tax (CIT) in Poland is a tax on the income earned by companies and certain other legal entities. It applies to both Polish companies and foreign companies operating in Poland. The tax is charged on a company’s total income, including revenue from business activities, investments, and capital gains.

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Who Will Be Subject to Corporate Tax in Poland?

Corporate Income Tax (CIT) in Poland applies to:

• A private or public limited company, or other legal persons like foundations, associations, and cooperatives.
• A capital company in formation.
• A partnership limited by shares with its office or management in Poland.
• A foreign company without legal personality, if treated as a legal person and taxed on global income in its home country.
• An organisational unit without legal personality (e.g. housing cooperatives), except civil-law, ordinary, professional, and limited partnerships.
• A tax capital group of at least two related companies with legal personality.

Note: Most partnerships (except those limited by shares) are not taxed directly. Instead, their partners are taxed on their share of income.

Who Will Be Exempt from Corporate Tax in Poland?

Some entities and types of income are exempt from paying Corporate Income Tax (CIT) in Poland. These exemptions fall into three main categories:

1. Entities Fully Exempt from CIT

The following entities do not pay corporate tax:

• The State Treasury
• The National Bank of Poland
• Budgetary units and state special-purpose funds
• Local government units (for specific types of income)
• Open-end investment funds and pension funds
• The Social Insurance Institution (ZUS)
• The National Health Fund (NFZ)

2. Income-Based (Object) Exemptions

Certain types of income will be exempt, regardless of who earns it. Examples include:

• Income from agriculture (excluding special agricultural activities)
• Income from forest management
• Income from activities that cannot be legally agreed upon in contracts
• Income from shipping or shipbuilding businesses that follow special tax rules
• Income from running a business in a Special Economic Zone (with proper authorization)
• Grants from the state or local authorities
• Some types of EU funding and state aid
• Income from intellectual property or bonds issued by the State Treasury under specific conditions

3. Conditional Exemptions for Specific Purposes

Some organizations can get exemptions if the income is used for allowed purposes. This applies to:

• Scientific, educational, cultural, health, or social organizations
• Public benefit organizations and religious institutions
• Volunteer Fire Brigades
• Trade unions and professional associations
• Entities managing housing stock (like housing cooperatives)
• Schools and similar institutions (if the income supports their activities)

Important: These exemptions do not apply if the income comes from restricted industries like alcohol, tobacco, precious metals, or electronics—or if it is used for other purposes.

 

What Is the Corporate Tax Rate in Poland?

 

Poland applies different Corporate Income Tax (CIT) rates depending on the type of taxpayer, the level of income, and the source of revenue. The system includes standard rates, special rates for certain income types, and withholding tax for non-residents:

1. Standard CIT Rates
 

Rate	Who Can Apply
19%	Applies to most companies on their total taxable income
9%	Small taxpayers with previous year revenue ≤ EUR 2 million and current year revenue ≤ EUR 1.2 million

2. Other CIT Rates

Rate	Applies To
0.035%	Monthly tax on the initial value of buildings rented or leased in Poland (above PLN 10 million)
5%	IP Box: Income from qualified intellectual property developed or improved through R&D
19%	Income from:    • Controlled foreign companies (CFCs)     • Exit tax (asset relocation or residency change) • Dividends and other profit participation

3. Withholding Tax for Non-Residents

Rate	Type of Income
20%	Interest, royalties, know-how, advisory, legal, and similar services Entertainment or sports services performed in Poland
10%	International shipping and air transport services

Minimum Income Tax in Poland

From 1 January 2024, Poland applies a 10% minimum income tax to companies that:

• Report a tax loss, or
• Have a profit margin of 2% or less (excluding capital gains)

This applies to Polish companies and tax capital groups, unless exempt.

How It Works

• Tax base is set under Article 24ca and includes revenue and certain costs
• Option to use a simplified method: 3% of revenue
• If regular CIT is lower than the minimum tax, the difference must be paid

• Declared using the CIT-M form with the CIT-8 or CIT-8AB return

   

Global Minimum Tax (Pillar II) in Poland

From 1 January 2025, Poland will apply a 15% global minimum tax under EU Directive 2022/2523. It covers international and domestic groups with annual revenue of at least €750 million in two of the last four tax years.

Key Rules

The tax is introduced through the Act on Compensatory Taxation and includes:

• QDMTT – top-up tax paid in Poland by low-taxed entities
• IIR – applies to Polish parent companies for foreign subsidiaries
• UTPR – applies if IIR does not cover full top-up amount

Safe Harbours and Exemptions

• De minimis exemption if income and revenue thresholds are not exceeded
• Safe harbours apply for domestic top-up tax, new groups, and low-risk countries
• If QDMTT is applied correctly, no global top-up tax is needed for that jurisdiction

Reporting and Payment Deadlines

• GloBE Information Return must be filed within 15 months after the end of the tax year (18 months for the first year)
• Top-up Tax Statement must be filed within 18 months after the end of the tax year (21 months for the first year)

• Tax must be paid by the same deadline as the statement

  What Income Is Taxable Under Corporate Income Tax in Poland?

Corporate Income Tax in Poland applies to a company’s total income from all sources unless specifically exempt. The taxable amount includes both capital gains and operating income.

1. Capital Gains

Capital gains that are subject to CIT include:

• Dividends and other profit distributions from legal persons or partnerships limited by shares
• Income from liquidation of a company or partnership
• Revenue from the sale of shares or ownership interests
• Gains from the disposal of acquired receivables
• Income from intellectual property rights such as copyrights, trademarks, licences, and know-how
• Revenue from securities and derivative financial instruments
• Income from selling all rights and obligations in a partnership

2. Other Operating Income

This includes income generated from regular business operations, such as:

• Sale of goods, products, or services
• Rental and lease income
• Sale of tangible and intangible assets
• Income from business activities carried out in Poland, including through a foreign branch

Special Taxable Cases

In some situations, CIT may apply directly to revenue rather than income (e.g., in the case of certain dividend payments or exit tax scenarios).

How to Register for Corporate Tax in Poland

Businesses that are subject to Corporate Income Tax (CIT) in Poland must register and obtain a Tax Identification Number (NIP) by submitting an identification application to the relevant tax authority.

Step-by-Step Registration Process

1. For Companies Registered with the National Court Register (KRS):

• Submit an integrated application as part of your KRS registration. This includes:
  • Company name, legal form, registered address, and other basic details
• Additionally, submit the NIP-8 form to the tax office with:
  • Abbreviated company name
  • Bank account details
  • Business and accounting addresses
  • Contact details
  • Details of partners and the person responsible for accounting

2. For Companies Not Registered with the KRS:

• Submit the NIP-2 form directly to the tax office. It must include:
  • Full and abbreviated company name
  • Legal form and registered address
  • REGON number
  • Nature of business activity
  • Bank account details
  • Information about accounting and partners
  • Parent company or group details, if applicable

Registration Deadlines

• KRS-registered companies must submit supplementary data within 21 days of registration
• Non-VAT payers must apply before submitting their first tax return or payment
• VAT or excise duty payers must apply before their first taxable transaction

NIP Assignment

• KRS-registered companies receive their NIP automatically after their data is transferred to the tax authority
• Other companies will receive a NIP within 3 working days of submitting a correct application
• A certificate of NIP assignment is issued by the tax office if not handled via KRS
   

Corporate Tax Filing and Payment Deadlines in Poland

Businesses subject to Corporate Income Tax (CIT) in Poland must follow specific deadlines for tax payments and filings. These obligations apply throughout the fiscal year and after the year ends.

Ongoing Tax Payments (During the Year)

Payment Type	Deadline
Monthly Advance	By the 20th day of the following month
Quarterly Advance	By the 20th day after each quarter (only for small taxpayers and new businesses)

Companies are required to pay advance income tax during the fiscal year, based on estimated profits.

Annual Tax Return

After the fiscal year ends, companies must submit an annual CIT-8 tax return and pay any remaining tax due.

Form	Purpose	Deadline
CIT-8	Main corporate income tax return	By the end of the third month after the fiscal year ends
CIT-8AB	For parent companies in tax capital groups	By the end of the third month after the fiscal year ends
CIT-CFC	For income from controlled foreign companies (file separately for each)	By the end of the ninth month after the fiscal year
CIT-NZ	For income from unrealised profits (exit tax)	By the 7th day of the month following the taxable event

Fiscal Year

The default fiscal year is the calendar year (1 January to 31 December). Companies may choose a different 12-month period but must apply it consistently and notify the tax office.

CIT Record-Keeping Obligations

• Companies must follow the Polish Accounting Act and keep clear and accurate records.
• Records must cover all income, expenses, and taxable transactions.
• Foreign companies with operations in Poland must maintain records locally.
• Special accounting rules apply to sectors like banking, insurance, and investment funds.
• All records must be stored in Poland and provided to tax authorities if requested.

JPK_CIT: Electronic CIT Reporting from 2025

From 1 January 2025, large companies in Poland with revenue over €50 million and tax capital groups must maintain their accounting books digitally and submit them in a structured XML format (JPK_CIT) to the tax office.

They will submit their first file by March 2026 for the 2025 tax year, using the new JPK_KR_PD structure. Initially, only account-level tags are required. From 2026, more details like contractor IDs and KSeF invoice numbers will be mandatory.

The obligation will apply to other taxpayers in phases:

• From 1 January 2026: CIT payers already filing JPK_VAT
• From 1 January 2027: All other CIT taxpayers
  
   

Conclusion

Corporate Income Tax in Poland applies to both Polish and foreign companies. It is important to meet filing deadlines and From 1 February 2026, KSeF e-invoicing will be required for large taxpayers. 

From 1 April 2026, it will apply to all VAT-registered businesses. A company must prepare its system for this change.

If you have a question on Corporate Tax or KSeF, you can contact us. We will be happy to assist.

FAQ

Who pays CIT in Poland?

Polish and foreign companies earning income in Poland.

What is the CIT rate?

19% standard, 9% for small taxpayers.

Who is exempt from CIT?

Entities such as

• ZUS
• Pension funds
• Income from agriculture
• Income from Special Economic Zones
• Certain EU grants or state aid

What income is taxable?

• Business profits
• Capital gains
• Rental income
• Investment income
• Other operating income

How to register for CIT?

Apply via KRS or submit NIP-2/NIP-8 to the tax office.

What are the deadlines?

• Monthly or quarterly advances by the 20th day
• Annual return by the end of the third month after the fiscal year ends