CIT 0% in Poland for Small Enterprises
During the last few years, we are observing many changes in the polish law. A lot of them are made to encourage people to start doing business. For example, the CIT for small companies has been reduced from 19% to 15%. Later, from 15% to 9%. The new idea is a 0% CIT for small firms following the example of Estonian model.
How does Estonian Model work?
This is a system in which corporate income tax is levied only at the time of payment of dividends, not when the company generates profits. This means that when company achieve profits and decide to re-invest money in order to grow the company, not to pay money to shareholders, they can apply for 0% CIT in Poland.
This system has the motivation to invest money to ensure further business developments and will be very helpful for mirco and small companies based in Poland. The new CIT system will start operating in the end of 2021.