Parliament Passes Major Tax Overhaul for Banks and Start-ups

In a significant legislative move, the Sejm (lower house of parliament) has passed an amendment to the Corporate Income Tax Act, ushering in substantial changes to the financial sector’s fiscal landscape. The bill, which passed with 238 votes in favor on October 17, is now headed to the Senate for consideration.

The most notable change impacts banks, with a phased increase in the Corporate Income Tax (CIT) rate. Starting January 1, 2026, the CIT rate for banks will jump from the current 19% to a temporary high of 30%. This will be followed by a reduction to 26% in 2027, eventually aiming for a target rate of 23%.

Alongside the increased CIT, the bill also provides for gradual reductions in the existing banking tax, a levy on certain financial institutions. This tax, currently set at 0.0366% of the tax base, is scheduled to drop to 0.0329% in 2027 and further decrease to 0.0293% in 2028. These banking tax adjustments are intended to mitigate the overall impact of the higher CIT and restructure the tax burden on financial institutions in the coming years.

The tax increases are not limited to banks. Start-ups with revenues up to €2 million will also see their preferential CIT rate rise: from 9% to 13%, reaching 20% in 2026, before settling at 16% in 2027.

The legislative changes are set to take effect in stages: the higher corporate income tax for banks from January 1, 2026, and the modified banking tax rates from January 1, 2027. The bill must first pass the Senate and be signed into law for these new rates to be implemented as scheduled.

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.