The Polish government will reduce the corporate income tax for small firms from 19% to 15% as of January 1, 2017, PM Beata Szydlo and deputy Finance Minister Wieslaw Janczyk said during a press conference following the cabinet sitting which adopted the bill, writes The Warsaw Voice.
The Finance Ministry hopes that lowering the tax will encourage entrepreneurs operating in shadow economy to legalize their activity, Janczyk said.
The expected reduction in tax receipts, estimated at some PLN 270 million annually (70 million dollars) should be offset by additional receipts from tightening the tax system.
The lower CIT rate will apply to firms with annual turnover (including the due VAT) of up to EUR 1.2 million, the press statement following the cabinet sitting read. It will not apply to capital groups. Changes are estimated to cover around 90% of CIT payers, or 400,000 firms.