Prime Minister Mateusz Morawiecki said last month that, despite an economic slowdown amid the global pandemic, his government was ready to exempt more companies from corporate income tax beginning next year if they decided to reinvest their profits.
Morawiecki told reporters at the time that his government would raise the threshold for the so-called Estonian corporate income tax system to cover companies with annual sales of up to PLN 100 million (EUR 22 million, USD 25 million).
The lower house of parliament on Wednesday overwhelmingly approved those plans in a 403-21 vote with 27 abstentions, public broadcaster Polish Radio’s IAR news agency reported.
The measure now goes to the Senate, the upper house of Poland's parliament, for further debate.
Under an initial government proposal, companies with sales of less than PLN 50 million were expected to be exempt from CIT if they retained and reinvested their profits instead of paying out dividends.
Morawiecki said in late September that the planned expansion of eligibility would contribute to the creation of "tens of thousands of new jobs in technologically advanced sectors.”
The country is set to introduce the new CIT rules in January.
Poland at the start of last year cut corporate income tax for small and medium-sized enterprises (SMEs) from 15 to 9 percent.
(gs/pk)
Source: IAR, PAP, TVP Info