Prime Minister Beata Szydło: Corporate income tax for small businesses will be reduced from 19% to 15%

The government has adopted a draft amendment to the Act on personal income tax and the Act on corporate income tax which provides for a reduction of income tax paid by small businesses as of 1 January 2017. It is the fulfilment of the promise made by Prime Minister Beata Szydło in her exposé.

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This is a solution that will help small businesses develop, accumulate capital, build the position of their companies, and finally a fulfilment of the principle we have adopted in our economic agenda, namely that small businesses are to become medium-sized companies, the medium-sized are to turn into large, and large enterprises must a chance to compete with global market players, said the Prime Minister.

The head of the government announced today that the draft will be submitted to the Sejm for debate in the nearest future. I hope that the Sejm would adopt the draft soon so that it enters into force on 1 January 2017, said Beata Szydło.

In accordance with the new regulations, the lower CIT rate will cover small taxpayers in the case of whom the value of gross sales revenue (VAT included) did not exceed the PLN equivalent of EUR 1.2 million in the previous tax year. This will also apply to taxpayers starting economic activity (for a year).

It is estimated that the reduced 15% CIT rate will cover about 90% of CIT taxpayers, or nearly 400,000 companies.

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