22% CIT from 2027 – who will pay higher tax and what does it mean for tax capital groups? (Part 2/3)

September 18, 2026

Financing the PIT reform requires identifying sources of funding. The main fiscal instrument is an increase in the CIT rate from 19% to 22% for entities generating annual revenues above EUR 50 million and for tax capital groups. The draft bill was published on 21 August 2026 and is intended to enter into force simultaneously with the PIT changes, i.e. on 1 January 2027.

Who will be subject to the new 22% rate?

According to the draft bill, the new 22% CIT rate will apply to two categories of entities:

• CIT taxpayers whose revenue in the previous tax year exceeded the equivalent of EUR 50 million (approximately PLN 215 million). The criterion is based on revenue from the previous year, not the current tax base.
• Tax Capital Groups (TCGs), regardless of the revenue level of individual companies.

The change will not affect small CIT taxpayers (revenue up to EUR 2 million), who may continue to benefit from the preferential 9% rate. It will also not apply to entities in the financial sector subject to separate taxation (e.g. banks, which already pay an additional tax on financial institutions). The draft also provides separate rules for large multinational groups, for which the threshold will be EUR 750 million of consolidated group revenue.

Minister of Finance Andrzej Domański stated that the proposed 22% rate broadly corresponds to the European Union average and is lower than rates in many countries in the region (e.g. France: 25%, Germany: effectively around 30%, Slovakia: 24% following a recent increase).

A key aspect of the proposed regulations that is often overlooked in media coverage concerns the application of the new rate. The higher 22% rate is to apply to the entire taxable income, not only the portion resulting from revenue above EUR 50 million. This is a fundamental difference compared with the progressive mechanism used in PIT.

This means that a company generating revenue of, for example, PLN 220 million in 2026 will pay 22% CIT on its entire tax base from 2027, not only on profits above the threshold. A company with identical profitability but revenue of PLN 200 million will continue to pay 19%. This mechanism creates a strong incentive for tax planning around the revenue threshold, and experts are already pointing to the risk of artificially splitting operations or optimising group structures in order to remain below the threshold.

Consequences for Tax Capital Groups

Tax Capital Groups (TCGs), which from 2027 are to be subject to the 22% rate regardless of revenue level, will need to conduct a detailed assessment of whether this form of taxation remains advantageous. TCGs are currently formed primarily to allow offsetting of profits and losses between parent and subsidiary companies. However, if the “price” of such consolidation is a higher CIT rate on the entire group income, many entities may conclude that dissolving the TCG and settling taxes separately will be more beneficial.

It should be expected that, following the adoption of the proposed changes, the number of applications to dissolve Tax Capital Groups or restructure them will increase.

Minimum CIT – parallel changes

The draft bill also modifies the rules governing minimum CIT, which has been in force since 2024 and applies to entities reporting a loss or profitability below 2%. The most significant changes include:

• Reduction of the profitability assessment period from 3 years to 2 years. If a taxpayer reports losses or low profitability for 2 consecutive years (instead of 3), it may become subject to minimum tax.
• New rules for calculating the tax base: differentiation between large and other taxpayers (criterion: revenue exceeding EUR 50 million). For large entities, the minimum CIT base will equal 5% of operating revenue; for others, 3%.
• A new exemption for the energy and district heating sectors. Enterprises deriving the majority of their revenue from the sale of electricity, heat or piped gas will be exempt from minimum CIT.

How much will the additional burden be and who will pay it?

The government expects that increasing the CIT rate for large companies will generate approximately PLN 2.6 billion in additional budget revenue in 2027 and PLN 5 to 6 billion annually in subsequent years. The change will affect an estimated 4,000 entities, including large domestic corporations and branches of international capital groups.

For stock market investors, it is crucial that the EUR 50 million revenue threshold is low enough to include the vast majority of companies listed on the main market of the Warsaw Stock Exchange. Analysts predict that higher CIT will reduce company valuations on the WSE. The scale of the effect will depend on the significance of CIT within a company’s overall tax burden and the extent to which optimisation through changes in cost structures or financing arrangements is possible.

How should businesses prepare?

For companies potentially subject to the new CIT rate, the most important preparatory actions should include:

• Verification of whether 2026 revenue will exceed the EUR 50 million threshold and assessment of the extent of exposure to higher CIT.
• Analysis of whether remaining within a Tax Capital Group remains beneficial or whether dissolution before 1 January 2027 would be preferable.
• Review of transfer pricing models within group transactions, as higher CIT may alter optimal pricing structures within the group.
• Assessment of the impact of the new minimum CIT rules on entities with low profitability or losses.

The draft bill is currently at the consultation stage. It is worth following its progress and, where necessary, actively participating in public consultations or submitting comments via industry organisations.

Tags CIT, CIT Increase, grupy kapitałowe, podwyżka CIT, Tax Capital Groups