What are the tax rates in the Zero tax on reinvested profits solution?


Flat rate on income is paid when profits are distributed and at a different rate than the standard CIT. The flat rate depends on the amount of revenue the taxpayer earns, i.e. being a small taxpayer, or a taxpayer commencing business activity.

For a small taxpayer and a taxpayer commencing business activity, the CIT rate is 10% of the tax base. For other taxpayers, the rate is 20% of the tax base.


The tax base is:

– the sum of the income from distributed profit and the income from profit appropriated to cover losses determined in the month in which the resolution to distribute or cover the net profit was adopted,

– the sum of income from inherent gain from non-business expenses determined in the month in which the service was provided or the payment or expense was made,

– income from changes in the value of assets – earned in the month in which the merger, division, transformation of entities or contribution in kind took place,

– net profit income – earned in the tax year in which the flat rate taxation was terminated,

– income from undisclosed business operations earned in the tax year.