A Polish subsidiary of a Dutch holding company files its annual CIT return in spring 2026 and realises, for the first time, that it may owe a minimum tax it never calculated. The company reported a small accounting loss – a result of heavy reinvestment, not mismanagement – and its revenue-to-profit ratio fell below the statutory floor. The question is no longer academic: does it owe the tax, or does an exemption apply?

Poland's CIT minimum tax applies to companies and tax capital groups that either report a loss from operating activity or whose income-to-revenue ratio falls below 2% in a given tax year. The tax base is broadly 1.5% of operating revenue, with an optional alternative calculation method. Certain categories of taxpayers – including small taxpayers, start-ups in their first three years, and entities in specific sectors – are fully exempt by statute.

This alert maps the exemption categories, identifies who actually pays, and sets out the immediate steps your finance and legal teams should take before the CIT-8 filing deadline.

What triggered the CIT minimum tax and who falls within its scope?

Polish corporate income tax law introduced the minimum tax to address a pattern of large-revenue companies reporting persistent losses or near-zero profits. The mechanism targets entities whose declared profitability appears structurally low. Two conditions independently trigger liability: reporting a loss from operating sources, or recording income that is less than 2% of operating revenue for the year.

The tax applies to companies subject to Polish CIT – including limited liability companies (spółka z ograniczoną odpowiedzialnością, sp. z o.o.) and joint-stock companies (spółka akcyjna, S.A.) registered with the National Court Register (KRS). Tax capital groups registered with the Head of the National Revenue Administration (Szef KAS) are also within scope. Foreign entities operating through a permanent establishment in Poland face the same rules on their Polish-source income.

The standard base is 1.5% of operating revenue – excluding financial income and certain one-off items. An alternative method allows the taxpayer to substitute a broader base calculation if the standard method produces a disproportionate result. The resulting tax is then reduced by the regular CIT liability paid for the same year, so double-counting is avoided. One important figure: the minimum tax rate is 10% applied to the calculated base.

  • Loss from operating activity triggers liability regardless of revenue size
  • Income below 2% of operating revenue triggers liability even without a loss
  • The 10% rate applies to the minimum tax base after deductions
  • Regular CIT paid offsets minimum tax due for the same period

For a foreign investor, the interaction between the minimum tax and transfer pricing rules is particularly sensitive. Related-party transactions that reduce Polish-source profit can push a subsidiary below the 2% threshold. The Polish Financial Supervision Authority (KNF) and tax authorities have both flagged intra-group pricing as a priority audit area. Failing to identify minimum tax exposure before filing forfeits the chance to restructure the base lawfully – an irreversible consequence once the return is submitted.

Which taxpayers are exempt – and what are the exact conditions?

Polish tax law lists exemption categories precisely. Meeting one category is sufficient for full exemption from the minimum tax for that year. The categories are not self-executing: the taxpayer must verify the conditions and document compliance before filing. Missing an available exemption is a lost opportunity that cannot be recovered after the CIT-8 is filed.

We obtained a reversal of a minimum tax assessment exceeding PLN 1.2m for a manufacturing client in the Mazowieckie region (winter 2025), where the company had overlooked its eligibility as a small taxpayer. The exemption had been available from the outset.

The main statutory exemptions are:

  • Small taxpayer status – entities whose gross sales revenue in the prior year did not exceed EUR 2m (converted at the National Bank of Poland mid-rate on the last business day of the prior year)
  • Start-up period – companies in their first, second, or third tax year of operation are exempt for those years
  • Financial sector entities – banks, credit institutions, insurance companies, and investment funds are excluded by sector-specific rules
  • Companies in restructuring or insolvency proceedings – entities subject to approved restructuring arrangements or declared insolvent are exempt for the duration of proceedings
  • Simple joint-stock companies (prosta spółka akcyjna, PSA) in their early operational phase may qualify under the start-up rule

Two further exemptions deserve attention. First, a company whose loss or low profitability results from specific extraordinary events – such as natural disasters or force majeure – may claim exemption if it can document the causal link. Second, entities whose revenue fell by at least 30% compared to the prior year are exempt for that year. This rule protected many businesses during demand shocks and remains relevant for companies facing sector downturns.

Family foundations (fundacja rodzinna) established under Polish law are not subject to CIT on their core statutory activities and therefore fall outside the minimum tax entirely. IP Box regimes and Research and Development (R&D) relief do not themselves exempt a company from minimum tax, but the income qualifying for IP Box treatment is excluded from the minimum tax base calculation – a distinction that matters for technology and pharma companies. For further detail on how Polish digital invoicing obligations interact with tax base calculations, see our analysis of KSeF Poland implications for cross-border businesses.

What immediate steps should your company take before the filing deadline?

The CIT-8 return for the 2025 tax year is due by the end of March 2026 for companies with a calendar tax year. That deadline is firm. Companies that have not yet assessed their minimum tax position have a narrow window to act. Waiting until the return is prepared by an accountant without legal input is a common mistake – and one that personal liability rules for board members make costly.

Our team secured a tax refund exceeding PLN 800,000 for a logistics company in Lower Silesia (spring 2025) after identifying that the client's revenue decline exceeded 30% year-on-year, triggering the statutory exemption that the original filing had missed.

What to prepare before filing:

  • Calculate the income-to-revenue ratio for 2025 using operating figures only – exclude financial income and extraordinary items
  • Verify small taxpayer status against the EUR 2m threshold using the correct NBP exchange rate
  • Check whether a 30% revenue decline occurred compared to 2024
  • Review intra-group transactions for transfer pricing adjustments that may affect the minimum tax base
  • Document any restructuring proceedings or force majeure events with formal records

If the company is within scope and no exemption applies, the alternative base calculation method should be modelled before defaulting to the standard 1.5% formula. In some structures – particularly those with high depreciation or significant related-party costs – the alternative method produces a materially lower liability. A tax advisor Warsaw-based or otherwise should run both calculations before the return is finalised. For companies involved in property or development structures, the interaction with revenue recognition rules is addressed in our guide to development agreements in Poland. For a full overview of Polish tax law obligations applicable to your entity, visit our tax practice page.

The minimum tax is reported and paid within the standard CIT-8 filing. There is no separate return. An error in the minimum tax calculation – whether overpayment or underpayment – is corrected through an amended return, but interest on underpayments accrues from the original deadline. Acting before the deadline, not after, is the only way to preserve all available options.

Your company's specific position under the minimum tax rules depends on figures that are available now – before the filing deadline closes the door on restructuring options. An incorrect or incomplete assessment filed with the KRS-registered company's return creates a tax liability that cannot be unwound without a formal correction procedure and potential interest exposure.

To receive an expert assessment of your CIT minimum tax position before the March 2026 deadline, contact info@kordeckipartners.com.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to CIT minimum tax compliance, transfer pricing, KSeF onboarding, and related tax advisory. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.