There will be explanations to Estonian CIT

The provisions of the Polish Order, which are only waiting for publication in the Journal of Laws, provide for a lot of changes in the field of Estonian CIT. This method of accounting is to be available to a wider range of entrepreneurs from next year.

– From January 1, 2022, in addition to joint-stock and limited liability companies, simple joint-stock companies, limited joint-stock partnerships and limited partnerships will also be able to use Estonian CIT. Additionally, the income criterion in Estonian CIT, which is currently PLN 100 million, will disappear. Moreover, from 2022, taxpayers who have opted for Estonian CIT will not be obliged to incur capital expenditures in a statutorily specified amount and for specified purposes. Failure to incur capital expenditures by a taxpayer will also not lead to the loss of the right to preferential taxation. The manner of settlement of the tax on net profit generated during the period of taxation with Estonian CIT, when the taxpayer voluntarily resigns from this model of taxation or loses the right to continue tax settlements on these principles, will also be different. Then the tax will appear only at the time of payment of the net profit earned during the period of settlement under Estonian rules. It will be taxed at the rate that applied to the taxpayer during the period of using Estonian CIT. Entrepreneurs will also be able to pay the tax under the existing rules, i.e. once when resigning from the lump sum or losing the right to Estonian CIT. It will be the taxpayer who decides which taxation he wants to use – explains Łukasz Kupryjańczyk, tax advisor, partner at Thedy & Partners.

Comments and opinions to the explanations of Estonian CIT can be submitted until November 30.