Filing a corporate tax return in Poland is a critical compliance responsibility for any business operating in the country. Whether you’re a local company or a foreign investor managing a Polish entity, understanding the tax obligations under Polish law is essential. This guide will walk you through how to file a corporate tax return in Poland, explain key terms like CIT in Poland, and help you stay compliant with local regulations.
What Is Corporate Tax (CIT) in Poland?
Overview of CIT in Poland
Corporate Income Tax (CIT) is imposed on legal entities earning income within Poland. It applies to:
- Limited liability companies (Sp. z o.o.)
- Joint-stock companies (S.A.)
- Certain partnerships (under new regulations)
- Foreign entities with a permanent establishment in Poland
Key CIT Rates in Poland
- Standard CIT Rate: 19%
- Reduced CIT Rate: 9% (for small taxpayers with revenue under EUR 2 million)
The tax base is calculated as net income, which includes total revenue minus tax-deductible expenses.
Who Pays CIT in Poland?
Both resident and non-resident companies pay CIT. Tax authorities tax resident companies on their global income and non-resident entities only on income earned within Poland.
Who Must File a Corporate Tax Return in Poland?
You must file a corporate tax return in Poland if you are:
- A Polish company (Sp. z o.o. or S.A.)
- A foreign company with a branch or office in Poland
- A partnership that falls under CIT regulations
- A company operating a permanent establishment in Poland
Filing is mandatory regardless of whether the company made a profit or operated at a loss.
Even dormant companies must submit a zero-declaration return.
Required Forms for CIT in Poland
Main Form: CIT-8
This is the standard annual tax return form used by companies in Poland to declare income and calculate tax liability.
Other Relevant Forms:
- CIT-8/O: For tax relief and exemptions
- CIT/TP: For transfer pricing disclosures
- ORD-U: For reporting related-party transactions
- Financial Statements: Required as an attachment for most companies
All forms must be submitted in Polish and in electronic format.
Step-by-Step Process: How to File a Corporate Tax Return in Poland
Step 1: Ensure Complete and Accurate Accounting
Maintain updated accounting records compliant with Polish standards. Accurate bookkeeping is essential for calculating taxable income and avoiding penalties.
Accounting in Poland must follow the Polish Accounting Act and is often more rigorous than in some other countries. Hiring a professional accountant or firm familiar with Polish rules is highly recommended.
Step 2: Calculate Taxable Income
Taxable income = Total revenue – allowable expenses.
Common deductible expenses include:
- Employee wages and social contributions
- Lease and utility costs
- Marketing and travel expenses
- Depreciation of assets
- Software licenses
- Professional services
Losses from previous years (up to 50% per year) may be carried forward for 5 years.
Step 3: Prepare and Complete CIT-8 and Attachments
Fill out CIT-8 and other applicable forms. Attach financial statements and any required disclosures such as transfer pricing documentation.
For companies that engage in transactions with related parties exceeding specific thresholds, submitting CIT/TP and ORD-U becomes mandatory.
Companies that qualify for tax reliefs (such as R&D or IP Box) must provide additional attachments and calculations.
Step 4: File Electronically
Use the Ministry of Finance’s e-Deklaracje portal to file the return. A qualified electronic signature is mandatory for submission.
Companies may authorize an external representative or tax advisor to file on their behalf with proper authorization (Pełnomocnictwo).
Step 5: Pay the Tax Due
Once you submit the return, calculate the tax payable and pay it before the statutory deadline. If you delay the payment, the tax authorities will charge penalty interest. Make sure you pay from the official company bank account registered with the tax office.
Filing Deadlines for Corporate Tax Return in Poland
- Annual Return (CIT-8): Due by March 31 (if the tax year ends December 31)
- Advance Payments: Due monthly or quarterly by the 20th of the following month
- Financial Statements: Must be filed within 15 days of submitting CIT-8 (for entities required to do so)
Extensions may be granted in exceptional cases but must be requested in advance.
Corporate Taxation for Foreign Companies in Poland
Permanent Establishments (PE)
Foreign businesses with a fixed presence in Poland are considered to have a PE and are subject to Polish CIT on their income.
Examples of a PE:
- Branch offices
- Warehouses or sales locations
- Construction projects (lasting over 12 months)
Tax Obligations for Foreign Entities
Foreign companies with a PE in Poland must:
- Maintain separate accounting in Poland
- File the CIT-8 return annually
- Submit financial statements (if applicable)
- Comply with Polish VAT and payroll tax regulations (if hiring staff)
Double Taxation Agreements (DTAs) can reduce the burden through foreign tax credits.
Foreign companies should assess if withholding tax (WHT) applies to dividends, royalties, or interest payments, and whether exemptions apply under EU directives.
Common Mistakes in CIT Filing
- Missing the filing deadline
- Incorrect or outdated forms
- Failing to disclose related-party transactions
- Improper classification of expenses
- Not attaching financial statements
- Forgetting to account for currency exchange gains/losses
- Using improper tax relief calculations
Avoiding these errors can save money and reduce audit risks. Polish tax authorities actively monitor for inconsistencies in CIT and VAT filings.
Tax Deductions and Reliefs under CIT in Poland
R&D Tax Relief
Companies conducting qualified research and development activities may deduct up to 200% of eligible costs (for innovative businesses).
IP Box Regime
A 5% CIT rate applies to income from qualified intellectual property developed and registered in Poland.
SEZ and Polish Investment Zone (PIZ) Incentives
Businesses operating in these zones may benefit from income tax exemptions for a defined period, depending on investment levels.
Start-Up and Innovation Support
Startups may be eligible for subsidies, grants, and initial tax reliefs during their formative years.
Government programs like “Start in Poland” aim to support tech-driven entrepreneurs with tax incentives and investment credits.
Post-Filing Compliance and Record-Keeping
After you file the corporate tax return in Poland, ensure:
- All documents are archived for at least 5 years (10 years for accounting ledgers)
- Any tax due is paid on time
- You monitor changes in tax law and CIT reporting
- You are prepared for possible audits by the Polish tax authority (KAS)
Companies must also prepare annual reports in Polish GAAP or IFRS (if applicable) and file them with the National Court Register (KRS).
Penalties for Non-Compliance
Non-compliance with CIT regulations can result in:
- Fines up to several thousand PLN
- Late payment interest (currently over 14% annually)
- Suspension of tax identification number (NIP)
- Audit scrutiny and additional assessments
- Criminal liability for deliberate tax fraud or financial misreporting
Directors may be held personally liable in cases of gross negligence or tax evasion.
CIT for Holding and Passive Income Companies
Companies that receive income from dividends, royalties, and interest must pay CIT unless exemptions apply under EU Directives or DTAs.
- Withholding tax (WHT) may apply to outbound payments
- Exemption is available under certain anti-avoidance conditions
- Clearance certificates and Beneficial Owner Declarations may be required
Proper legal structuring is critical for international tax efficiency.
How Ease to Compliance Can Help
At Ease to Compliance, our firm offers end-to-end services for:
- Preparing and filing CIT-8 and all required forms
- Managing advanced CIT payments and year-end calculations
- Transfer pricing documentation and ORD-U filing
- Financial statement preparation and submission
- Representing clients during tax audits or reviews
We work with startups, SMEs, and multinational corporations to ensure full compliance with Polish CIT laws and minimise tax risks.
Need help with your corporate tax return in Poland? Contact us today and file with confidence.
FAQs on corporate tax return in Poland
Question 1. Can a Polish company choose a different tax year than the calendar year?
Answer: Yes, Polish companies can select a different tax year than the calendar year, but this must be specified in the company’s Articles of Association and reported to the tax authorities. The chosen tax year must be consistent and followed in all filings unless formally changed.
Question 2. Is there a minimum profit threshold for filing a corporate tax return in Poland?
Answer: No, there is no minimum profit threshold. All registered entities, including those with zero revenue or operating at a loss, must file a corporate tax return annually.
Question 3. Do companies in Poland need to file a tax return if they are under liquidation?
Answer: Yes, companies undergoing liquidation must fulfill tax obligations, submit the CIT-8 return, and complete all necessary filings until the liquidation process ends.
