CIT rate to rise to 22 per cent from 2027 – what this means for company owners, CEOs and finance departments

CIT rate to rise to 22 per cent from 2027 – what this means for company owners, CEOs and finance departments

22 / 08 / 2026
autor: admin

In mid-August 2026, the government set out the key points of a package of tax changes due to come into force from 2027. One of the key elements is an increase in the corporation tax (CIT) rate from 19 per cent to 22 per cent for companies and tax groups whose turnover in the previous tax year exceeded the equivalent of 50 million euros (approx. 200 million zlotys). Even higher, transitional rates are planned for some entities in the energy and fuel sectors.

For owners, CEOs and staff in accounting and finance departments, this has specific implications for net profit, cash flow, dividend policy, budget planning and development decisions. Below, we present the key information, numerical examples and practical conclusions.

 

What does the planned change involve?

In accordance with the proposals published in the list of legislative work of the Chancellery of the Prime Minister and announcements by the Ministry of Finance:

The standard rate of corporation tax is set to rise from 19 per cent to 22 per cent for taxpayers whose revenue in the previous tax year exceeded 50 million euros, and for tax groups.
It is estimated that this will affect over 4,300 companies and over 100 tax groups.
Banks are exempt from this regulation (they are subject to separate rules).
For selected entities in the following sectors: gas and oil extraction, trade in gaseous and liquid fuels, and electricity distribution and transmission (with revenues exceeding €50 million), transitional rates are planned: 30 per cent in 2027, 26 per cent in 2028, 23 per cent in 2029, followed by a return to the standard rate.
Revenue from the higher CIT in the energy and fuel sector is intended to partially fund a scheme to reduce energy prices for energy-intensive industries (with a budget of approximately PLN 4.8 billion for the period 2027–2030).

Information about the projects can be found on government websites:

 

The draft bills are currently at the conceptual stage. The legislative process is expected to last until October/November 2026, and the changes are to be incorporated into the 2027 budget.

Impact on the company’s results and ownership decisions

A 3 percentage point increase in the rate represents an increase in the tax burden of approximately 15.8 per cent compared with the current rate of 19 per cent.

Example 1 – a manufacturing company

Taxable profit: PLN 25 million

CIT at 19%: PLN 4.75 million

CIT at 22%: PLN 5.5 million

Additional tax burden: PLN 750,000 per year.

Example 2 – a trading company with a lower profit margin
Taxable profit: PLN 12 million

Additional tax liability: PLN 360,000.

For owners and CEOs, this means:

  • a smaller dividend base,
  • fewer funds for reinvestment, research and development, and pay rises,
  • the need to update long-term financial plans as early as 2026.

In family-owned companies, where dividends are a significant source of income for the owners, such a change may require a review of the dividend policy and the succession plan.

The €50 million threshold effect – the risk of growth stalling

Exceeding the revenue threshold of 50 million euros triggers the application of a higher tax rate to the entire taxable profit. For companies approaching this limit, there is an incentive to:

  • plan expansion more cautiously,
  • analyse the structure of the group,
  • assess whether further revenue growth is economically justified given the higher tax rate.

Market analysts (including Trigon DM) estimate that the change could reduce the valuations of some listed companies by 3–4 per cent (assuming ceteris paribus). Part of this effect may be offset by attempts to pass on costs to customers – depending on the company’s market position.

The perspective of the accounting and finance department

For chief accountants and staff in the financial control departments, the most significant operational implications are:

  1. Higher CIT advance payments from 2027 – the need to update cash flow forecasts and the payment schedule.
  2. Monitoring the revenue threshold – ongoing checks to ensure the company or group is not approaching the €50 million mark.
  3. Updating budgets and financial models – base-case and pessimistic scenarios incorporating the new rate.
  4. Impact on banking ratios – coverage, debt, creditworthiness. It is advisable to prepare communications with financing banks.
  5. Documentation and reporting – once the regulations come into force, the new rate will need to be correctly applied in CIT-8 returns and advance payments.

In practice, finance departments should already be preparing:

  • a comparative table showing the 19% and 22% CIT rates at different profit levels,
  • an updated cash flow forecast for 2027–2029,
  • a list of questions for the board regarding dividend policy and investments.

The energy and fuel sectors – a special case

For companies subject to higher transitional rates (30 per cent/26 per cent/23 per cent), the impact is significantly greater. The additional revenue is intended to fund support for energy-intensive industries. The CEOs and owners of these entities should analyse particularly carefully the possibility of passing on some of the costs, the impact on decarbonisation investment plans, and their relationships with key industrial customers.

What you should do right now

  1. Check the company’s/group’s current revenue level against the €50 million threshold.
  2. Prepare simulations of the impact on net profit, dividends and key indicators.
  3. Update the 2027 budget and long-term plans.
  4. Discuss the dividend payout and reinvestment policy at a meeting of the management board/supervisory board.
  5. Prepare communications with banks and investors.
  6. Monitor the final wording of draft legislation on the gov.pl website.

The most common risks and mistakes

  • Treating the change as ‘affecting only large corporations’ – many medium-sized family-owned companies may be affected.
  • Failure to take the revenue threshold into account when planning for growth.
  • Delay in updating cash flow forecasts.
  • Underestimation of the cumulative effect with other tax changes (including the solidarity levy and the flat-rate limit).

Summary and recommended next steps

The planned increase in corporation tax to 22 per cent (and higher transitional rates in selected sectors) represents a significant change for owners, CEOs and finance departments of companies with turnover exceeding the €50 million threshold. It has a direct impact on profitability, liquidity, dividend payout capacity and growth decisions.

Key actions for now: monitoring the revenue threshold, updating budgets and scenarios, preparing communications with stakeholders, and tracking the legislative process.

Once the full draft legislation has been published, it is worth re-examining the specific wording of the provisions and – if necessary – consulting a tax and financial adviser regarding the company’s situation. At FA Partners, you can consult our Co-Managing Partner and Chief Accountant, Anna Nowakowska-Madany; see our quick contact details by phone and email zobacz szybki kontakt telefoniczny i mailowy

 

 

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