Poland's planned CIT hikes may spur risky tax avoidance, experts warn

Poland's government intends to raise the corporate income tax (CIT) rate from 19% to 22% starting in 2027 for companies and tax capital groups earning over 50 million euros annually. An even steeper increase to 30% is planned for companies in the fuel and energy sectors.

These plans were announced preliminarily through a press conference and entries in the government's legislative work schedule. Specific draft laws detailing the implementation and criteria for the higher rates have not yet been released. This lack of detail leaves open questions about who exactly will be subject to the increased tax burden and under what conditions.

Following the government's announcement, experts have begun discussing potential corporate reactions. A prominent suggestion is that affected companies might attempt to split into multiple smaller entities, each earning less than the 50 million euro threshold to avoid the higher tax rate. However, experts caution that such strategies carry significant legal risks and the anticipated cost savings may not outweigh the expenses associated with these optimization efforts.