CIT Tax Settlements

Limited-liability companies (sp. z o.o.), limited partnerships (sp.k.) and limited joint-stock partnerships (S.K.A.) are subject to corporate income tax (CIT). This means that their earned profit, before being distributed to shareholders, must first be taxed at the enterprise level. Two CIT rates apply: 9% and 19%, and eligibility for the reduced rate depends on the entity’s revenue level.

As with PIT, CIT also requires the payment of advance payments, either monthly or quarterly. The annual settlement, in turn, must be completed by the end of the third month after the financial year ends; most commonly, though not always, the deadline is 31 March.

CIT taxpayers are, in the vast majority of cases, unconditionally required to maintain financial books and, consequently, to prepare and file financial statements. The financial statements — comprising, in the basic version, a balance sheet, a profit and loss account and supplementary information — are prepared by the person entrusted with maintaining the books and signed by the members of the management body. The shareholders then approve the statements by way of a resolution, simultaneously deciding on the distribution/retention of profit or coverage of the loss. The final obligation is to file the statements along with the resolutions with the Central Repository of Financial Documents, which is only possible electronically via the e-KRS portal.