According to the preliminary draft published by the Ministry of Finance, in 2021, the Estonian CIT will come into force in Poland – a lump sum on the income of capital companies. Estonian CIT assumes that the taxation of the company’s income is deferred until the profit is paid out. Companies will not pay monthly or quarterly tax advances, will not be required to make annual settlements, and will not be required to keep separate records for tax purposes. The taxpayer will not have to determine what is a tax-deductible cost or calculate depreciation charges. This solution can be used as long as the income generated by the company is invested in the company’s development.

The facilitation is aimed at small and medium-sized capital companies (with limited liability and joint-stock companies):

• the revenues of which do not exceed PLN 50 million in companies whose shareholders are only natural persons who do not hold shares or stocks in the capital of other entities
• which employ at least 3 employees – in addition to shareholders or stockholders, for at least 300 days of the tax year
• whose passive revenues do not exceed the revenues from operating activities
• which show capital expenditure

All of the above criteria must be met simultaneously.

he head of the Tax Office should be informed about the choice of this form of taxation by the end of the first month of the first tax year of the flat-rate application.
The flat-rate taxation system is chosen for 4 years.
It is not possible to resign from this form earlier unless the taxpayer breaches the criteria for applying the facilitation.
Violation of the conditions will not result in the necessity of retroactive CIT settlement.