The year 2025 brings a continuation of Poland’s key business tax rules, but also the challenges of digitalisation and increasing pressure for proper reporting. In this article, we discuss the key tax issues for entrepreneurs operating as companies – both partnerships and limited liability companies.
Partnerships (general partnership, limited partnership)
Partnerships are not independent income taxpayers in Poland – its partners are taxed, not the partnership as such.
Each partner settles income tax on his or her share of the profit attributable to him or her, and thus he or she can choose:
The partnership provides the partners with information on income and expenses (PIT-5/PIT-8C), on the basis of which they settle their tax obligations.
Note: From a tax point of view, limited partnerships and limited joint-stock partnerships are currently treated in the same way as capital companies and are therefore CIT taxpayers (from 2021).
Capital companies (Ltd., S.A., PSA and sp.k. and SKA)
In Poland, limited liability companies and limited partnerships and limited joint-stock partnerships are taxpayers of CIT, i.e. corporate income tax. This means that:
CIT rates in 2025
It is worth noting that Poland has introduced the institution of the so-called “Estonian CIT”, which is a lump sum tax on corporate income. This is a simplified and favourable taxation model designed for limited liability companies (sp. z o.o.), joint stock companies (S.A.) and simple joint stock companies (PSA).
Unlike traditional CIT, where tax is paid on the profit made by the company, in the Estonian system tax is deferred until the profit is distributed to shareholders or for other private purposes. This means that profit can be reinvested in the company without a current tax burden, which encourages growth and investment.
Key features of the Estonian CIT
Estonian CIT is becoming increasingly popular in Poland as a tool to increase corporate liquidity.
Value added tax, or VAT, is one of the basic indirect taxes operating in Poland and throughout the European Union. VAT is levied on most goods and services and is an important source of revenue for the state budget. Businesses are required to charge it, collect it from customers and remit it to the tax office.
The VAT system works by taxing the value added at each stage of the production and distribution of goods or services. This makes the tax neutral for businesses – entrepreneurs deduct input VAT on purchases from the VAT due on sales.
VAT rates in 2025
In 2025, the Polish tax system continues to offer entrepreneurs a number of important reliefs to support the development of innovative companies and improve production and research processes. Effective use of the available tax preferences makes it possible to significantly reduce business costs and increase competitiveness in the market.
Below are the most important tax reliefs of particular interest to companies investing in research, development and high technology:
The choice of business form and taxation method has a direct impact on business profitability. Partnerships allow greater flexibility in accounting for partners’ income tax, while limited liability companies involve the obligation to pay CIT – with the option to choose the Estonian taxation model, among others.
Our team supports companies in selecting optimal tax solutions and guides clients through the implementation of such structures.
Author: Aleksander Skirpan
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