A comprehensive tax reform package was unveiled on 21 September 2026, aiming to overhaul both Corporate and Personal Income Tax laws. Key proposals include prohibiting taxpayers from switching to the Estonian CIT regime mid-year, eliminating popular optimization schemes involving lease arrangements and trademark royalties, and granting a minimum tax exemption for the energy sector to prevent electricity and gas price surges. The reform also introduces stricter controlled foreign company (CFC) rules and expands the tax base for high-net-worth individuals. The government emphasizes that the changes will increase budget revenues by an estimated PLN 5 billion annually while shielding consumers.
Key Takeaways
- Estonian CIT Entry Barrier: Companies must commit to the regime before the tax year starts; no in-year elections.
- Anti-Optimization Measures: Lease payments between related parties and intra-group trademark royalties face stricter deductibility tests.
- Energy Sector Relief: Minimum tax exemption for utilities ensures stable consumer tariffs through 2027.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement