Polski

 

In our article, we show how to navigate through the new regulations in practice – especially how to check whether the taxpayer will be subject to the minimum income tax and what needs to be done to calculate the amount of this tax. 

The signed by the President of Poland on 15th of November 2021 amendments to tax regulations – the so-called Polish Deal – provide for regulations introducing a new minimum income tax in the Corporate Income Tax Act (art. 24ca) (CIT Act).

The idea and the structure of the minimum income tax constitute a novelty as far as Polish tax regulations are concerned and constitute yet another breach in the principles of standard CIT.

 

Step 1 - We check whether the entity is not excluded from the regulations of the minimum income tax

Step 2 - We verify, on the base of the financial result of the entity, whether it is subject to the regulations of the minimum income tax

Step 3 - We establish the tax base

Step 4 - We reduce the tax base by selected elements

Step 5 - We calculate the amount of the minimum income tax

Step 6 - We set the amount of the minimum income tax to pay

Step 7 - We deduct the amount of the minimum income tax in subsequent years

Summary

We prepared the above summary based on the signed amendments to the tax regulations concerning the minimum income tax, which however has already raised a number of doubts. In case of changes in the scope of the minimum income tax, we will update the document. 

We hope that the summary has helped you to understand better the construction of the minimum income tax and to estimate the impact of the amended regulations on your business. We also would like to encourage you to use the minimum income tax calculator created by us.

If you have any additional questions about the minimum income tax, do not hesitate to contact us.