Senate restores 22 percent CIT and removes indexation of PIT thresholds.
The senators’ amendments concern large companies and PIT thresholds, while the flat-rate tax limit for the smallest businesses is to be cut eightfold. The final shape of the 2027 rules will be decided by the Sejm.
On 27 October, the Senate passed, with eight amendments, the amendment to the income tax acts that the Sejm had adopted on 22 October. The provisions are to apply from 1 January 2027. This was reported, among others, by My Company Polska (opens in a new tab) and Prawo.pl.
The senators restored the government’s proposal to raise CIT from 19 to 22 percent. It applies to companies with revenue exceeding the equivalent of EUR 50 million in the previous tax year and to tax capital groups. The Sejm had previously deleted this provision. According to government estimates cited by WNP.pl, the increase is expected to bring the budget around PLN 6.2 billion in 2027.
The Senate also removed the annual indexation of PIT thresholds by inflation that had been added by the Sejm. The new thresholds remain: the first rises from PLN 120,000 to PLN 130,000, income from PLN 130,000 to PLN 150,000 will be covered by a new 24 percent rate, and the surplus over PLN 150,000 by a 32 percent rate. The solidarity levy on income above PLN 1 million per year is to rise from 4 to 5 percent.
The reduction of the flat-rate tax limit, important for microbusinesses and freelancers, remained unchanged in the Senate. The revenue limit that qualifies for this form of taxation is to fall from EUR 2 million to EUR 250,000, that is approximately to around PLN 1.1 million. Eligibility for the flat-rate tax in 2027 will be determined by revenue earned in 2026. According to estimates from the government’s regulatory impact assessment, cited in the media, the change will affect around 43,000 entrepreneurs. Sources differ as to the fate of the additional 17 percent rate on revenue above EUR 300,000: My Company Polska describes it as part of the bill, while WNP.pl states that the Senate removed it.
In September, Small and Medium-Sized Entrepreneurs’ Ombudsman (opens in a new tab) Agnieszka Majewska spoke out against lowering the limit. As she wrote, “revenue cannot be automatically equated with the economic strength of an enterprise.” She also called for a longer vacatio legis, that is, the period between the publication of an act and its entry into force.
The act now returns to the Sejm, which may accept the Senate’s amendments or reject them by an absolute majority of votes. It will then go to the president for signature. Companies with revenue close to the new flat-rate tax limit can already compare the costs of the flat-rate tax, the linear tax and the tax scale under several revenue scenarios.