Estonian CIT: who can benefit
To use Estonian CIT taxpayers, must meet such requires as: common revenues including VAT can not be higher than 100 000,00 PLN incl. VAT, not more than 50% of revenues cannot be from “passive revenues”, taxpayer have to employ or cooperate with at least 3 people on civil contract and beer the costs at least three times of average monthly salary. Employees or contractors can not be shareholders of the company. Taxpayer must conduct his business activity in form of limited company or join- stock company. Shareholders cannot be people who own financial rights in trust ant like the structures.
Company cannot keep the books in according to international accounting standards. What is more appropriate declaration to head of tax office should be sent. There are different regulations for small taxpayers and new business. If taxpayer meet requirements, is obligated to incur investment expenditures in 15% at least 20 000,00 PLN in 2-years period or 33% at least 50 000,00 PLN in 4 years period. Lawmaker precise what kind of investment expenditures can be included. If taxpayer increase employment, is relieved from investment expenditures. The different requirements are predicted for small taxpayers and new businesses. If company do not meet investment requirement losses right to use Estonian CIT in the end of 2- or 4-years period.
Mentioned regulations aims to accelerate investments. In next news will be presented other issues connected with Estonian CIT in Poland (tax base, rate, taxation of dividends).