PIT & CIT Tax Filing
Everything you need to know about personal and corporate income tax in Poland.
Income Tax in Poland — Overview
Poland levies income tax on both individuals (PIT — Podatek Dochodowy od Osób Fizycznych) and legal entities (CIT — Podatek Dochodowy od Osób Prawnych). Understanding the differences, rates, and filing requirements is essential for every business operating in the country.
PIT — Personal Income Tax
PIT applies to all individuals earning income in Poland, including employees, self-employed sole traders, and freelancers. Poland uses a progressive tax scale for most taxpayers:
| Taxable Income | Rate |
|---|---|
| Up to 120,000 PLN | 12% |
| Above 120,000 PLN | 32% |
There is a tax-free allowance of 30,000 PLN per year, meaning no tax is owed on the first 30,000 PLN of annual income.
Flat Tax Option for Entrepreneurs
Self-employed individuals can opt for a flat 19% tax rate (podatek liniowy) instead of the progressive scale. This is often advantageous for higher earners but comes with trade-offs:
- No tax-free allowance (30,000 PLN threshold does not apply)
- Cannot file jointly with a spouse
- Cannot use certain deductions available under the progressive scale
Ryczałt (Lump-Sum Tax)
Certain businesses can opt for ryczałt, a simplified tax based on revenue (not profit). Rates range from 2% to 17% depending on the type of activity:
- 2% — Sale of agricultural products
- 3% — Gastronomy, retail trade
- 5.5% — Construction, manufacturing
- 8.5% — Services (most common rate), rental income up to 100,000 PLN
- 10% — Real estate sales services
- 12% — IT services, certain professional services
- 14% — Health, medical services
- 15% — Legal, consulting, marketing services
- 17% — Freelance professionals (certain categories)
Key PIT Forms & Deadlines
| Form | Purpose | Deadline |
|---|---|---|
| PIT-36 | Annual return — business income (progressive scale) | April 30 |
| PIT-36L | Annual return — flat tax (19%) | April 30 |
| PIT-28 | Annual return — ryczałt (lump-sum) | April 30 |
| PIT-37 | Annual return — employment income only | April 30 |
| PIT-11 | Employer's annual summary for each employee | January 31 (to tax office), February 28 (to employee) |
Monthly or quarterly income tax advances must be paid by the 20th of the following month (or following quarter).
CIT — Corporate Income Tax
CIT applies to legal entities: spółka z o.o. (Ltd.), spółka akcyjna (S.A.), foundations, and other corporate forms. The standard CIT rates are:
| Category | Rate |
|---|---|
| Standard CIT rate | 19% |
| Reduced rate (small taxpayers < 2M EUR revenue) | 9% |
The 9% reduced rate is available to companies with annual revenue under 2 million EUR and during their first year of operation. This makes Poland one of the most competitive corporate tax environments in the EU for small businesses.
Estonian CIT (Ryczałt od Dochodów Spółek)
Since 2021, Poland offers an Estonian CIT model where companies pay tax only when profits are distributed (as dividends), not when they are earned. This can significantly improve cash flow for reinvesting companies. Eligible companies must:
- Have revenue under 100 million PLN
- Not hold shares in other entities
- Employ at least 3 people (excluding shareholders)
- Have only natural persons as shareholders
Key CIT Forms & Deadlines
| Form | Purpose | Deadline |
|---|---|---|
| CIT-8 | Annual corporate tax return | End of 3rd month after fiscal year end (usually March 31) |
| CIT-8E | Estonian CIT annual return | End of 3rd month after fiscal year end |
Monthly CIT advances are due by the 20th of the following month. Quarterly advances are available for small taxpayers.
Common Deductions & Credits
- R&D relief (ulga B+R) — Deduct up to 200% of qualifying research & development costs
- IP Box — 5% tax rate on income from qualifying intellectual property
- Robotization relief — 50% additional deduction for industrial automation investments
- Prototype relief — Deduction for costs of new product development and trial production
- Sponsorship & CSR deductions — Deductions for sports, culture, and education sponsorship
How Klaras AI Simplifies Tax Filing
- Tax form selection — Our system recommends the optimal tax form and taxation method based on your income, expenses, and business structure.
- Continuous advance calculations — Monthly PIT/CIT advances are calculated automatically as transactions are recorded, so you always know what's due.
- Deduction optimization — Klaras AI identifies eligible deductions (R&D, IP Box, robotization) and flags opportunities you might miss.
- Annual return preparation — PIT-36, PIT-36L, PIT-28, CIT-8, and all attachments are generated from your ledger data, ready for e-filing.
- PIT-11 generation — Employer annual summaries for every employee are prepared and ready for submission by the January deadline.
- Year-end projections — By Q3, Klaras AI provides tax liability estimates so you can plan cash flow and consider advance payment adjustments.
Need help choosing the right tax structure? Talk to our team — we'll analyze your situation and recommend the best option.