{"id":5413,"date":"2026-03-20T15:59:09","date_gmt":"2026-03-20T14:59:09","guid":{"rendered":"https:\/\/clpodatki.pl\/?p=5413"},"modified":"2026-10-13T11:37:57","modified_gmt":"2026-10-13T09:37:57","slug":"draft-amendment-to-cit-and-pit-2026","status":"publish","type":"post","link":"https:\/\/clpodatki.pl\/en\/draft-amendment-to-cit-and-pit-2026\/","title":{"rendered":"Draft amendment to CIT and PIT 2026"},"content":{"rendered":"<p><span dir=\"auto\">On March 16, 2026, a bill was published, amending, among other things, the corporate income tax (CIT) and personal income tax (PIT) regulations. The bill is currently undergoing review.<\/span><\/p>\n<p><span dir=\"auto\">Below, we present selected issues arising from the proposed changes\u2014in our opinion, the most important ones. For clarity, they have been grouped thematically, particularly in the areas of IP Box, Estonian CIT, and relationships between related entities.<\/span><\/p>\n<p><strong><span dir=\"auto\">1. Changes related to the taxation of transactions between related entities:<\/span><\/strong><\/p>\n<p><strong><span dir=\"auto\">Return to the hidden dividend idea?<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The bill introduces provisions limiting the inclusion of expenses treated as &#8220;hidden dividends&#8221; in tax costs.<\/span><\/p>\n<p><span dir=\"auto\">The new regulations provide that certain expenses incurred by a company on behalf of related entities (e.g. partners or companies associated with them) will not be included in tax costs.<\/span><\/p>\n<p><span dir=\"auto\">The legislator wants to limit situations in which profits are &#8220;drawn out&#8221; from a company in a way other than through dividends \u2013 e.g. by:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">advisory services provided by a partner,<\/span><\/li>\n<li><span dir=\"auto\">other services provided by related entities.<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><span dir=\"auto\">So far, such expenses have often:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">were a tax expense for the company (i.e. they reduced CIT),<\/span><\/li>\n<li><span dir=\"auto\">and at the same time they were taxed at a lower rate on the partner&#8217;s side (e.g. a flat rate of 8.5%).<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><strong><span dir=\"auto\">2. Proposed changes for flat-rate taxpayers:<\/span><\/strong><\/p>\n<p><strong><span dir=\"auto\">Higher rate for transactions with related parties.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The project assumes the introduction of a 17% rate for revenues obtained from, among others:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">rental and lease,<\/span><\/li>\n<li><span dir=\"auto\">intellectual property agreements,<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><span dir=\"auto\">if they are carried out on behalf of related entities.<\/span><\/p>\n<p><strong><span dir=\"auto\">Additional taxation of rental income<\/span><\/strong><span dir=\"auto\"> . In the case of rentals to related entities: income up to PLN 100,000 will be taxed according to the basic rules, while the excess above this limit will be subject to a 15% rate.<\/span><\/p>\n<p><strong><span dir=\"auto\">3. Changes in IP Box:<\/span><\/strong><\/p>\n<p><strong><span dir=\"auto\">IP Box \u2013 minimum employment level.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The project introduces a new condition for using the IP Box relief \u2013 to benefit from the preferences, the taxpayer will have to meet one of the following conditions:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">employ at least 3 people under an employment contract for most of the year (minimum 300 days), or<\/span><\/li>\n<li><span dir=\"auto\">incur sufficiently high salary costs for at least 3 people (at a specific level related to the average salary).<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><span dir=\"auto\">Additionally, these individuals cannot be affiliated with the taxpayer. The proposed change aims to shift the relief toward larger, more organized entities and limit its retroactive use through tax adjustments.<\/span><\/p>\n<p><strong><span dir=\"auto\">Solidarity levy and IP Box \u2013<\/span><\/strong><span dir=\"auto\"> income covered by the preferential rate of 5% (IP Box) will be included in the basis of the solidarity levy.<\/span><\/p>\n<p><strong><span dir=\"auto\">4. Changes in Estonian CIT (lump sum tax on corporate income):<\/span><\/strong><\/p>\n<p><strong><span dir=\"auto\">Introduction of a definition of \u201cnon-business expenses\u201d.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The project introduces a definition according to which expenses unrelated to business activity include in particular:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">Expenditures incurred for purposes other than generating revenue, maintaining a source of revenue, or securing a source of revenue.<\/span><\/li>\n<li><span dir=\"auto\">All types of public law fees and charges of a punitive nature, such as penalties, fines, administrative or tax sanctions.<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><strong><span dir=\"auto\">Clarifying the definition of \u201chidden profits.\u201d<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The justification for the draft amendment indicated that the existing regulations were imprecise and raised numerous doubts, particularly regarding when a given benefit to a shareholder should be considered hidden profits. Therefore, the draft eliminates the unclear criterion of &#8220;connection with the right to participate in profits,&#8221; while explicitly stating that the following may be considered hidden profits:<\/span><\/p>\n<p><em><span dir=\"auto\">&#8220;all kinds of fees and charges:<\/span><\/em><\/p>\n<ul>\n<li><em><span dir=\"auto\">arising from a lease, tenancy or other similar agreement,\u00a0<\/span><\/em><\/li>\n<li><em><span dir=\"auto\">for the use or the right to use the rights or values \u200b\u200breferred to in Article 16b paragraph 1 points 4-7,<\/span><\/em><\/li>\n<li><em><span dir=\"auto\">in respect of advisory services, accounting services, market research services, legal services, advertising services, intermediation services, management and control services, data processing, employee recruitment and personnel acquisition services, guarantees and sureties, and similar services, and\u00a0<\/span><\/em><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><em><span dir=\"auto\">remuneration paid to a partner for recurring non-cash benefits.\u201d<\/span><\/em><\/p>\n<p><span dir=\"auto\">At the same time, additional clarification was introduced \u2013 the category of hidden profits excluded, among others:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">purchase of goods, materials and raw materials used in business activities,<\/span><\/li>\n<li><span dir=\"auto\">purchase of services that are resold or used to produce the products\/services offered.<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><strong><span dir=\"auto\">Elimination of the possibility of changing the form of taxation to a lump sum before the end of the tax year.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The project assumes excluding the possibility of entering Estonian CIT &#8220;during the year&#8221;.<\/span><\/p>\n<p><strong><span dir=\"auto\">Recognition of financial statements signed after the deadline.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">Reports prepared for the purpose of entering the Estonian CIT will be considered correct even if they are signed after the deadline by the head of the entity or the person keeping the books.<\/span><\/p>\n<p><strong><span dir=\"auto\">Presumption regarding the timing of recognition of net profit distribution after exiting Estonian CIT.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">Previously, tax on profits generated during the Estonian Corporate Income Tax (CIT) period was paid only upon their distribution, which in practice allowed for a significant deferral of taxation and the allocation of distributions to profits from earlier periods. Following the change, any distribution of profits after the Estonian Corporate Income Tax (CIT) period is primarily treated as a distribution of profits from that period. Consequently, this means that tax is payable regardless of when the profit was actually generated. An exception applies if the profit distribution resolution clearly states that the distribution relates to profits from before the Estonian Corporate Income Tax period \u2013 in such a case, taxation can be avoided under the new rules.<\/span><\/p>\n<p><strong><span dir=\"auto\">Liberalization of the employment condition in a lump sum on company income.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">Previously, regulations prohibited combining different forms of employment \u2013 \u200b\u200beither three people had to have employment contracts or three people had to have civil law contracts. In practice, this meant that, for example, two people working on a contract and one full-time job did not meet the requirement. After the change, combining these forms will be possible \u2013 salaries from employment contracts and other contracts will be added together. The project is currently being reviewed and may be subject to change. We will keep you updated on progress and any potential changes to Estonian corporate income tax regulations.<\/span><\/p>\n<p><strong><span dir=\"auto\">5. Depreciation in real estate companies.<\/span><\/strong><\/p>\n<p><span dir=\"auto\">The project introduces:<\/span><\/p>\n<ul>\n<li><span dir=\"auto\">Prohibition of depreciation of real estate classified as long-term investments on the balance sheet.<\/span><\/li>\n<li><span dir=\"auto\">The aim is to limit the creation of an artificial tax shield and increase consistency between financial results and tax income.<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><strong><span dir=\"auto\">Prohibition on changing depreciation rates after the deadline for filing the return.<\/span><\/strong><\/p>\n<ul>\n<li><span dir=\"auto\">The choice of depreciation rate will have to be made by the deadline for filing the tax return for the given year.<\/span><\/li>\n<li><span dir=\"auto\">The aim is to prevent retroactive changes that would allow artificially lower costs for tax optimization purposes.<\/span><\/li>\n<li><span dir=\"auto\">The regulation does not deprive taxpayers of the freedom to choose their rate, but clearly defines the moment when the decision should be made.<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><span dir=\"auto\">The draft includes a number of significant tax changes that could impact tax settlements and business operations. At this stage, these are still legislative proposals, and we cannot assess their final form or whether they will even come into effect. However, it&#8217;s worth being aware of the direction of the planned changes and their potential consequences now.<\/span><\/p>\n<p><span dir=\"auto\">If you have any questions or need to analyze the effects of the changes, please contact us.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IP Box, Estonian CIT and related entities under scrutiny<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[322,323],"tags":[453,454,456,455,452],"ppma_author":[95,99],"class_list":["post-5413","post","type-post","status-publish","format-standard","hentry","category-articles","category-blog","tag-draft-amendments-to-the-cit-and-pit-acts-for-2026","tag-estonian-cit","tag-hidden-dividend","tag-ip-box","tag-related-parties"],"acf":[],"authors":[{"term_id":95,"user_id":0,"is_guest":1,"slug":"arkadiusz_lagowski","display_name":"Arkadiusz \u0141agowski","avatar_url":{"url":"https:\/\/clpodatki.pl\/wp-content\/uploads\/2024\/12\/DSC_2314-scaled-e1751961533543.jpg","url2x":"https:\/\/clpodatki.pl\/wp-content\/uploads\/2024\/12\/DSC_2314-scaled-e1751961533543.jpg"},"author_category":"1","first_name":"Arkadiusz","last_name":"\u0141agowski","user_url":"https:\/\/pl.linkedin.com\/in\/arkadiusz-%C5%82agowski","job_title":"Doradca Podatkowy, Partner","description":"Tel.: +48 500 150 818"},{"term_id":99,"user_id":10,"is_guest":0,"slug":"anna-nowakowska","display_name":"Anna Nowakowska","avatar_url":{"url":"https:\/\/clpodatki.pl\/wp-content\/uploads\/2025\/01\/anna-nowakowska-strona-e1752242394385.jpg","url2x":"https:\/\/clpodatki.pl\/wp-content\/uploads\/2025\/01\/anna-nowakowska-strona-e1752242394385.jpg"},"author_category":"1","first_name":"Anna","last_name":"Nowakowska","user_url":"https:\/\/pl.linkedin.com\/in\/anna-nowakowska-doradcapodatkowy","job_title":"Doradca Podatkowy, Mened\u017cer ds. podatk\u00f3w dochodowych","description":"Tel.: +48 690 800 132"}],"_links":{"self":[{"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/posts\/5413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/comments?post=5413"}],"version-history":[{"count":1,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/posts\/5413\/revisions"}],"predecessor-version":[{"id":5414,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/posts\/5413\/revisions\/5414"}],"wp:attachment":[{"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/media?parent=5413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/categories?post=5413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/tags?post=5413"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/clpodatki.pl\/en\/wp-json\/wp\/v2\/ppma_author?post=5413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}