Contents:
- Minimum Corporate Income Tax (Podatek minimalny)
- Example of Minimum Corporate Income Tax Calculation
- Global Minimum Tax
- Categories of Global Minimum Tax and Calculation Examples
- New Reporting Requirements
By reading this article, you will learn:
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The end of the year is approaching, bringing a time of changes that could significantly impact business operations in the future. Next year, entrepreneurs will face changes in tax obligations, which will be a real challenge for some. This article highlights the key updates.
From 2025, companies operating in Poland will be required to account for the Minimum Corporate Income Tax (Podatek minimalny). Note that this obligation applies to organizations that have recorded losses or whose profits accounted for less than 2% of their revenue.
It is worth noting that the Minimum Corporate Income Tax first appeared in the CIT Act in January 2022. However, due to numerous disputes, the government decided to postpone its implementation for two years. Now, after a break, new regulations concerning the CIT Minimum Tax came into effect in January this year.
Important:
The first report on the CIT Minimum Tax for 2024 must be submitted by entrepreneurs next year.
The Minimum Corporate Income Tax is calculated at a rate of 10% of the taxable base and includes:
- 1.5% of income not derived from capital gains.
- Excessive expenses on debt financing (loans, credits) incurred by related entities.
- Costs for certain services and receivables (consulting services, license fees, and advertising expenses) if their total exceeds 3 million PLN.
Additionally, next year, businesses will be able to choose a simplified method for calculating the tax base: 3% of income not related to capital gains.
Moreover, small taxpayers with an annual turnover of up to 2 million euros, as well as businesses undergoing bankruptcy or liquidation, are exempt from this tax. Furthermore, banks and other financial institutions, hospitals, and municipal organizations are also exempt from paying this tax.
