President signs bill on reducing CIT to 15% from 2017

On Friday, September 23, Polish President Andrzej Duda has signed a bill on the corporate income tax (CIT) for small firms, which assumes the reduction it from 19 percent to 15 percent as of January 1, 2017. The lower CIT rate will be applied for companies with annual turnover of up to €1.2 million (PLN 5.28 million). The officials hope that lowering the tax will encourage entrepreneurs to exit the shadow economy. Earlier, Ministry of Finance officials said they expect the reduction to have a neutral effect on public finance as the resulting PLN 270 million annual gap in CIT receipts would be offset by additional receipts from tightening the tax system. In that version of the bill, the changes would apply to 90 percent of CIT payers.