Błażej Sarzalski


Attorney, registered in the Regional Bar in Katowice, CEO at Sarzalski Consulting Sp. z o.o., an expert in a field of formation of commercial companies, corporate law, promissory notes and litigation.
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Poland to enjoy ‘Estonian’ corporate income tax from 2021

Błażej Sarzalski23 June 2020Komentarze (2)

While many countries are rising taxes due to coronavirus crisis there are still some countries thinking with a longer perspective. Poland included. In order to attract worldwide capital and investors the government will implement, so called, ‘Estonian’ corporate income tax from the beginning of 2021.

What does it mean for a potential investor?

There will be no corporate income tax on retained and reinvested profits. The new system of corporate ernings taxation will be based on Estonian solutions, which are, to say the least, truly unique.

In Estonia the moment of corporate taxation is shifted from the moment of earning the profits to the moment of their distribution. This means that earning profit in itself does not trigger income tax liability. The tax obligation arises only when earnings are distributed to shareholders (and in other situations treated as distribution of profits, for example when company lends money to its shareholders or make payments to blacklisted offshore territories).

The new corporate income tax system will apply to approx. 97% of companies, as the project assumes the new rules will apply to all limited liability companies, joint-stock companies and joint-stock partherships with annual turnover below PLN 50 million (approx. EUR 11 million).

Yet, this is another reason to consider Poland as a place for your worldwide business, especially when you compare it to other European tax regimes. What may be also of some importance -Poland, unlike Estonia or Cyprus does not bear a burden of being associated with capital of Russian origin, it has implemented strict AML laws and is considered a stable economy, even in times of Covid-19 crisis.

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    { 2 comments… read them below or add one }

    Mark September 5, 2020 at 13:17

    Hi there, do you know when this will officially launch? Would you be able to provide a link to gov.pl webpage for this? Cheers!


    Błażej Sarzalski September 7, 2020 at 09:06

    This should officially lauch at 1st January 2021, but contrary to previous information, so called “Estonian CIT”, will not be what we expected. Many conditions to apply for this kind of tax solution are planned and from my perspective most enterpreneurs will stay with 9% CIT rate.


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