Annual CIT tax return – extension of deadline to June 30, 2022

Our Polish Tax Attorneys from Warsaw Office inforom that the Polish Ministry of Finance has proposed the extension of the deadline for the annual CIT settlement for last financial year. This is positive news for companies domiciled in Poland which are currently grappling with the changes introduced by the Polish Order (in Polish: Polski Ład).

Corporate Income Tax in Poland

CIT is a tax on corporate income. CIT taxpayers are:

• legal persons (including limited liability companies, joint stock companies, foundations, associations, cooperatives),
• capital companies in organization,
• organizational units without legal personality (e.g. housing communities, educational establishments), except for companies without legal personality,
• general partnerships having their registered office or management board in Poland, if the partners of this partnership are not exclusively natural persons and the partnership does not submit, before the beginning of the financial year, information about CIT taxpayers and PIT taxpayers having, directly or through entities not subject to income tax, rights to participate in the profit of this partnership,
• limited joint-stock partnerships having their registered office or management board in Poland,
• limited partnerships having their registered office or management board in Poland,
• tax capital groups (groups registered with the tax office, consisting of at least two commercial law companies having legal personality, which function in capital associations and fulfil certain conditions),
• non-corporate companies with their registered office or management board in another country, if they are treated as legal entities in accordance with the tax laws of that country and are subject to taxation in that country on their total income regardless of where it is earned,

Annual CIT return – proposal to extend the deadline to 30 June 2022

The Polish Ministry of Finance has forwarded for external consultation and public consultation a draft regulation that will extend the deadlines for the annual settlement of CIT.

According to the draft regulation, 30 June, 2022 will be the final date for:

• submission of a return on the amount of income earned (loss incurred) in the tax year that ended between 1 December, 2021 and 28 February, 2022 (CIT-8, CIT-8AB),
• payment of due tax indicated in the return, or the difference between due tax on income indicated in this return and the sum of due advances for the period from the beginning of the year referred to in Article 27 Paragraph 1 of the Corporate Income Tax Act.

When will the changes come into effect?

The draft law is currently under review. No date has been indicated for its entry into force, although last year’s amendment on this subject was not promulgated until 29 March, 2021. The course of the legislative work can be followed on the Polish Government Legislation Centre website https://legislacja.gov.pl/projekt/12356456/katalog/12854654#12854654

Questions or concerns regarding CIT tax in Poland – contact our law firm

Should you have any questions or doubts, we encourage you to contact our Law Firm. Our lawyers from the tax law practice team will be happy to answer your questions. Inquiries can be directed to: [email protected]