Poland Introduces New Tax Rules for SMEs

On July 28, 2020, the Polish government adopted new business rules for representatives of small companies. A new corporate regime is introduced, which can be used by small and medium-sized businesses. It is expected that the regime will be temporary, it is being implemented so that businesses receive the necessary support during the coronavirus crisis.

The tax regime assumes two main models. First of all, we are talking about an integrated model. In this case, companies will be able to avoid paying taxes until the profit distribution. The so-called “Estonian tax regime” works on a similar basis. The second model is investments. In this case, organizations pay taxes according to the standard rules, but they can place funds in special investment accounts. Profits from an investment account will be completely tax-exempt.

The new tax regime will be available for joint-stock companies in which shareholders' income for 12 months does not exceed PLN 50 million. It will also be available to limited liability companies. Organizations that wish to take advantage of this tax regime must employ at least 3 employees.

Law&Trust offers services for legal entities operating in Poland. Our lawyers will help you prepare documents for applying to the tax authorities and will tell you about all the advantages of the new tax regime.