The announced changes regarding the tax brackets in PIT should be assessed positively, although their effect will be significantly limited. Raising the first tax bracket to 130,000 PLN and introducing a 24% rate for income between 130 and 150,000 PLN will reduce the tax burden on individuals who file under the general rules (i.e. the progressive tax scale) by a maximum of approximately ok. 3,600 PLN per year.
These changes, however, may affect the choice made by taxpayers opting for the flat tax on recorded revenue, in particular by entrepreneurs who are on the borderline of the attractiveness of both forms of taxation.
Taxation under the general rules allows the taxpayer to benefit from the tax-free amount and to reduce income by the costs incurred in obtaining it, benefits which are not available under the flat tax. In the case of business activity generating higher expenses, this difference may tip the balance in favour of taxation under the general rules.
As a result, the increased thresholds on the tax scale may mean that, for some individuals, the flat tax may no longer be the most advantageous option.
From a second perspective, however, reducing the limit that entitles businesses to use the flat-rate tax system to 2,000,000 EUR, and then to 250,000 EUR, may be significantly disadvantageous for some entrepreneurs. Taxpayers exceeding the new limit may be forced to choose another form of taxation, which in many cases means higher costs.
For CIT taxpayers whose revenue in the tax year exceeded the equivalent of 50,000,000 EUR, according to the Ministry of Finance, this was the case on 1 August 2025, which was 4344. This seemingly small change may translate into significant revenue for the budget. This will not be welcomed by the management and owners of these entities.
With a high degree of certainty, it can be assumed that the topic of possible and legally permissible actions aimed at changing this undesirable situation will soon appear at meetings of management bodies. It may be necessary to consider settling with the tax authorities using the Estonian CIT, but this is not a solution for everyone, especially entities controlled by other companies. However, here too, voices are being raised about the need to “tighten” the existing regulations.
A possible solution may also be restructuring and division (including cross-border division), but I would recommend such actions rather to entities that had already planned this before any changes in the CIT rate.
In other words, the cure may be worse than the disease if one takes into account the formal requirements provided for by the CIT Act. The situation perfectly fits the well-known slogan: “cry and pay”. Whether foreign and local businesses will act as the Polish government would like them to at this time is difficult to say.
As for the other changes, including in particular the increase in the solidarity tax, the saying “cry and pay” may become a new motto for 2027. Employees on employment contracts or those running a business and earning income above 1,000,000 PLN do not always have the possibility of making changes to avoid this tax.
Today, a happy atmosphere prevails on Świętokrzyska Street in Warsaw.