CIT-8 Corporate Income Tax
The main corporate tax in Poland is CIT (Corporate Income Tax), filed using the CIT-8 form.
- Standard rate: 19%.
- For small taxpayers (turnover up to €2 million): 9%.
A key feature of CIT is double taxation: the company pays tax on profit, and shareholders pay dividend tax (19%) on top.
This means part of the income is taxed twice.
An alternative is to pay remuneration to the management board (zarząd), which is taxed at 12–32% depending on the amount. The salary is included in company expenses, reducing the taxable base.
More about CIT is available on the official Polish tax office website: podatki.gov.pl.
Estonian CIT
The Estonian taxation model (ryczałt od dochodów spółek) means corporate income tax is paid only when profits are distributed, for example as dividends.
This benefits companies that reinvest profits instead of distributing them immediately.
Example Calculation
Traditional CIT:
- Company profit: 5,000,000 PLN
- CIT (19%): 950,000 PLN
- Dividend tax (19% of 4,050,000): 769,500 PLN
- Total: 1,719,500 PLN (34.39%)
Estonian CIT:
- CIT on profit distribution (20%): 1,000,000 PLN
- Dividend tax after credit: ~250,000 PLN
- Total: 1,250,000 PLN (~25%)
Conclusion: when all profits are distributed, Estonian CIT reduces the tax burden by about 9 percentage points.
More info: official information on ryczałt.
ZUS Contributions
A Spółka z o.o. is required to pay ZUS social insurance contributions for its employees. If a shareholder performs management functions under a management contract, they must also pay contributions to have medical and pension coverage.
Current rates are available on the ZUS website: zus.pl.
Value Added Tax (VAT)
VAT (Value Added Tax) is included in the price of goods or services and is actually paid by the customer. The company acts as an intermediary and transfers it to the tax office.
- Standard rate — 23%.
- Reduced rates: 5% and 8% for certain categories of goods and services.
- 0% for exports to EU countries.
- Exemption for companies with annual turnover up to 200,000 PLN.
More info: podatki.gov.pl — VAT section.
Annual Financial Report
All Spółka z o.o. registered in the National Court Register (KRS) are required to submit an annual financial report.
- Deadline — within 3 months after the end of the financial year (usually by March 31).
- Reports are submitted electronically via the eKRS system.
