Estonian CIT from 2022

From January 1st, 2022, the Estonian CIT, in addition to joint-stock companies and limited liability companies, will also be available to simple joint-stock companies, limited joint-stock partnerships and limited partnerships. Therefore, the spectrum of activities that will be able to take advantage of it will expand.

• Removal of the revenue criterion

At the beginning of 2022, the revenue criterion in the Estonian CIT will disappear, and together with the tax surcharge, if it is exceeded. In 2021, the Estonian CIT was available to taxpayers whose annual revenues did not exceed 100 million PLN. If this amount was exceeded, it was necessary to make an additional payment on the excess revenue.

• No obligation to incur capital expenditures in the amount specified by law and for specific purposes

With the new year, taxpayers who have chosen Estonian CIT will not be required to incur capital expenditures in the amount specified by law and for specific purposes. It will also not lead to the loss of the right to preferential taxation.

• No tax on the adjustment of tax revenues and expenses when switching to Estonian CIT

Taxpayers using the lump sum on company income will not have to pay the tax resulting from the correction of income and tax costs made when switching to the Estonian system. The condition is to settle accounts on an Estonian basis for at least 4 years.

• Tax only upon payment of net profit

The method of settling the tax on the net profit generated in the Estonian CIT tax period will change if the taxpayer resigns from this type of taxation or loses the right to continue tax settlements under these rules. In such a situation, the tax will not appear until the net profit generated in the settlement period is paid out on an Estonian basis. It will be taxed at the rate applicable to the taxpayer while using the Estonian CIT.