Estonian CIT – conditions in 2022 in Poland

February 10, 2022

What are the conditions for Estonian CIT in 2022 in Poland?

Estonian CIT, also known as a lump sum on the income of capital companies, allows a company to avoid paying income tax until the profit is distributed or the loss is covered. Only when there is the profit distributed  (or the loss is covered) that arose when the Estonian CIT tax was not applied, an enterprise is obliged to pay the tax. A taxpayer’s choice of this form of taxation is voluntary, and the company should notify the head of the competent tax office of its choice by the end of the first month of the tax year in which it plans to use Estonian CIT. However, if the taxpayer decides for a change during the tax year, then it is mandatory to balance the books for that day. prepare a financial statement and settle traditional CIT.

Estonian CIT – when cannot be applied?

Estonian CIT, called a lump sum on the income of capital companies, has been in force in Poland since 2021. While this solution is economically profitable for many, the choice of this form of taxation is not possible for some entities at all.

Below we present the conditions without which taxation with Estonian CIT is not possible.

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Author: Marta Mazurek

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