November 5, 2020 / Law /

In accordance with the decision of the Sejm, from 2021 more taxpayers will benefit from the corporate income tax (CIT) rate lowered to 9%. The change will also be important for limited partnerships which will acquire the status of a CIT taxpayer from January 2021 or May 2021 and will also be entitled to apply the reduced tax rate.

The changes are provided for in the draft act of September 15, 2020 amending the act on personal income tax, the act on corporate income tax, the act on flat-rate income tax on certain revenues earned by natural persons and some other acts. The limit of revenues generated in the tax year will be increased from EUR 1.2 million currently in force to EUR 2 million. After the change, the tax at the 9% rate will be paid by taxpayers whose revenues in the fiscal year will not exceed the amount expressed in PLN, corresponding to the equivalent of EUR 2 million.

The revenue limit expressed in EUR is converted into the Polish currency at the average EUR exchange rate announced by the National Bank of Poland on the first business day of October of the year preceding the tax year, rounded to PLN 1,000. On October 1, 2020, the average euro exchange rate announced by the NB, in accordance with table No. 192 / A / NBP / 2020, amounts to PLN 4.5153 / EUR. Therefore, by converting and rounding, the status of a small CIT taxpayer in 2021 will be enjoyed by taxpayers whose sales revenue (including the amount of VAT due) in 2020 did not exceed PLN 9,031,000.