Zero tax on reinvested profits solution

 

The Zero tax on reinvested profits solution (i.e. flat rate taxation) may be imposed on the taxpayer referred to in art. 3(1) of the CIT Act, i.e. a company with its registered office or management on the territory of the Republic of Poland and subject to taxation in Poland on its entire income, regardless of the place of its generation.

 

In addition, the flat rate provisions allow those who carry out business activities and agricultural or forestry activities at the same time to opt for flat rate taxation (art. 2(1)(1) and (2) of the CIT Act). This form of taxation can therefore be used by those conducting mixed activities.

The Zero tax on reinvested profits solution applies to:

  • joint stock companies
  • limited liability companies
  • limited partnerships
  • limited joint-stock partnerships
  • simple joint stock companies.