Lower corporate income tax rate in 2017

Błażej Sarzalski        20 December 2016        Please comment!

Yet another reason to consider company formation in Poland is new regulation regarding corporate income tax.

From the beginning of 2017 A.D. corporate income tax (CIT) rate for newly formed companies in Poland will equal 15% rate. If annual income exceed 1,200.000 euro (including value added tax), the company will be subject to 19% tax rate.

What is also important – there is possibility of exempting dividends from tax, when entity receiving income (revenue) from dividends, as well as other revenues qualified as dividends, is another company which is subject to taxation on the entire of its income in the Republic of Poland or in a European Union member state other than the Republic of Poland, or Switzerland or in another state of the European Economic Area, regardless of where it is earned.

The condition of the exemption is continuous, two-year holding period by the company receiving the dividends required 10% (in the case of Swiss – 25%) of shares in the capital of the company paying the charge. The prerequisite is also met, if this period has elapsed after the date of receiving the dividend.

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