Entrepreneurs criticize government over CIT changes: "We need predictability"

Polish business organizations are strongly criticizing the government's recent tax reform proposals, citing a lack of consultation and a breach of a commitment to a minimum six-month period before new tax laws take effect. The Business Centre Club (BCC) highlighted that the government's promise of a "vacatio legis" for tax changes is being broken again, with proposed regulations potentially coming into force from January 1, 2027, without adequate notice.

Michał Borowski, a tax expert at BCC, and Andrzej Ladziński, head of the tax committee at Employers of Poland, both expressed shock at the proposed increase in the corporate income tax (CIT) rate from 19% to 22% for companies exceeding 50 million euros in revenue. Ladziński argued that such a significant tax hike should be preceded by in-depth, systemic discussions, rather than being presented abruptly. He emphasized that entrepreneurs need a conversation about the framework of a new tax system that addresses the challenges of a digital economy, not sudden announcements of potential double-digit tax increases.

Business leaders and experts warn that constant changes to tax regulations complicate business operations and development, and in extreme cases, could lead companies to seek ways to circumvent the rules. Borowski stressed that predictability is as crucial for entrepreneurs as reasonable tax rates, as stable laws are essential for planning investments, budgets, and employment. Łukasz Kozłowski, chief economist at the Federation of Entrepreneurs of Poland, noted that differentiating CIT rates based on company size might encourage firms to restructure their operations to minimize tax liabilities, possibly by splitting activities across multiple companies.

Some observers, like Wojciech Kostrzewa, head of the Polish Business Council, perceive the government's actions as primarily driven by political considerations rather than economic ones. Kostrzewa suggested the tax changes are a gesture towards the middle class, who are affected by inflation and unadjusted tax thresholds. Reports indicate that the announced CIT changes are not the only ones planned, with the government expected to present further reforms affecting business taxation this week.

“

To, czego oczekują przedsiębiorcy, to właśnie rozmowa na temat kształtu nowego systemu podatkowego, który odpowie na wyzwania nowoczesnej gospodarki cyfrowej, a nie podanie z dnia na dzień informacji, że być może od nowego roku ciężar podatku dochodowego wzrośnie o kilkanaście procent.