Government Presents New Ideas for Small and Medium Enterprises

Polish government adopted an SME package – informed Jadwiga Emilewicz, the Minister of Entrepreneurship and Development of small and medium enterprises. The package is to be an answer to the troubles of owners of small and medium-sized companies in the country. Mateusz Morawiecki’s cabinet vouched to make the lives of Polish entrepreneurs including small and medium enterprises easier, at least when it comes to their fiscal and legal duties and interaction with state authorities.

The package of new legal amendments consists of almost 50 new solutions thanks to which business owners are to save time and money. They mainly concern fiscal and commercial law. One of the biggest changes is expanding the status of small and medium enterprises. Today, a small taxpayer is a company whose annual turnover does not exceed 1.2 million euros. The Ministry of Entrepreneurship and Development want this threshold to be moved up to 2 million euro. The status of a small taxpayer equals different tax rates and simplified compliance obligations than those applying to bigger entities.

The corporate income tax rate is to be decreased from 15 to 9 percent. Prime Minister Mateusz Morawiecki boasted it will be among the lowest in Europe. Among other solutions are one-time tax loss brought forward up to the amount of 5 million PLN, corporate income tax exemptions on the incomes of alternative investment companies arising from the sale of shares, and elimination of mandatory health and safety training for certain groups of employees (e.g. office staff). Local tax forms are to be simplified and submitted electronically.

Certain changes will apply to limited liability companies. Soon, all management board resolutions will be allowed to be approved remotely. The government also wants to introduce regulations stating the rules applying to the repayment of dividend advanced payments by shareholders if a company does not accumulate the assumed level of income or encounters loss.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.