Along with the entry into force of the amended tax provisions (within the tax reform known as “the Polish Deal”), companies are going to deal with a new solution, which is minimum income tax. It shall apply not only to the biggest entrepreneurs, but also to all of the companies with shared capital, tax capital groups and foreign entrepreneurs.
This regulation doesn’t contain size criterion, which means that this tax will cover all previously – mentioned entities, if only their share of income in the revenue is less than 1% or they suffer a loss for the current fiscal year. These conditions does not apply to the revenues form capital gains. Inherently, this tax mostly aims to increase budget revenues and also to reduce international CIT gap. Exclusion of some exhaustively enumerated entities from the scope of this regulation, has been provided by legislator. When calculating the amount of tax due, there will be some deduction concerning, among others, reliefs from the article 18 of Corporate Income Tax Act or activities in the special economic zone. Minimum income tax shall apply not only to the revenues but also to certain tax cost categories. Rate of this tax is to be 10% of the tax base which will include sum of the revenues and costs specified in the regulations. The tax will be downsized by the CIT amount, which is due for the same year. It will be calculated annually and paid within the time of submitting a tax declaration. Calculating the tax base of minimum income tax will certainly cause many problems for taxpayers due to the necessity of making long and difficult calculations which are based on two mathematical formulas, that are indicated in the Act. It is worth mentioning that, this amendment provides for possibility to deduct minimum income tax that has been already paid for a given year, from CIT tax in a given annual statement, as well as for the following 3 tax years.