A small sp. z o.o. (Polish limited liability company) can pay CIT advances in three ways in 2025: monthly, quarterly, or in a simplified form. Quarterly advances are available exclusively to small taxpayers (gross revenue up to PLN 8,569,000 in 2024) and companies in their first year of operation. The method you choose directly affects your company’s cash flow and administrative workload.
What are CIT advances and who has to pay them?
CIT advances are mandatory prepayments toward your annual corporate income tax, made throughout the tax year. Every CIT taxpayer that earns taxable income is required to make these payments.
Legal basis: Art. 25(1) of the Corporate Income Tax Act of 15 February 1992 (Journal of Laws 2025, item 278). Each advance is calculated as the difference between the tax due on income earned from the beginning of the year and the total advances already due for prior periods.
Taxpayers whose income is fully exempt from CIT are not required to pay advances. Companies that have formally suspended their operations are also exempt during the suspension period.
Who is required to pay?
- Limited liability companies (sp. z o.o.) and joint-stock companies (S.A.).
- Limited partnerships (sp. k.) and limited joint-stock partnerships (S.K.A.).
- Foundations and associations earning CIT-taxable income.
- Companies in organisation (from the moment the articles of association are signed).
From our experience at Progress Holding, many owners of newly registered companies are unaware that CIT advances are due from the very first months of operation. A missed payment triggers penalty interest — even if the annual tax ends up being zero.
What types of CIT advances are available in 2025?
CIT taxpayers can use three forms of advance payments: monthly (default), quarterly (for small taxpayers and first-year companies), and simplified (a fixed monthly amount based on prior-year returns). Each has different conditions, deadlines, and consequences.
Monthly advances — the default option
Monthly advances are the standard CIT payment method. Any taxpayer can use them without prior notification or special conditions. They are due by the 20th of the following month — for example, the January advance is due by 20 February.
The advance for the last month of the tax year (December) is due by 20 January of the following year. You can skip this payment if you file your CIT-8 return and pay the full tax due before 20 January.
Quarterly advances — who qualifies?
Quarterly advances are available to two groups: small CIT taxpayers and taxpayers in their first year of operation. A small taxpayer is a company whose gross sales revenue (including VAT) in the previous year did not exceed EUR 2,000,000.
For 2025, the small taxpayer threshold is PLN 8,569,000 (converted at the NBP exchange rate of 1 October 2024: PLN 4.2846/EUR). If your company falls under this limit, you can opt for quarterly payments, due by the 20th of the month following each quarter.
You declare the use of quarterly advances in your annual CIT-8 return — filed for the year in which you used this method. No prior notification to the tax office is required.
Simplified advances — a fixed monthly amount
Simplified advances equal 1/12 of the tax due as reported in the CIT-8 return filed in the previous year. If that return showed zero tax, the calculation is based on the return from two years prior. If neither return showed any tax due, simplified advances cannot be used.
Example: Your company filed a CIT-8 return for 2023 (submitted in 2024) showing PLN 60,000 in tax. In 2025, you pay PLN 5,000 per month (60,000 ÷ 12). This amount stays fixed for the entire year, regardless of actual results.
Simplified advances must be maintained for the full tax year. You cannot opt out mid-year.
How do monthly and quarterly advances compare?
The key difference lies in payment frequency and the impact on your company’s cash flow. Monthly advances require 12 payments per year; quarterly advances require only 4. For a small company with seasonal revenue, this distinction matters.
| Feature | Monthly advances | Quarterly advances | Simplified advances |
|---|---|---|---|
| Eligibility | Any CIT taxpayer | Small taxpayers & first-year companies | Taxpayers with tax shown in prior CIT-8 |
| Payment frequency | 12 times per year | 4 times per year | 12 times per year |
| Deadline | By the 20th of the following month | By the 20th of the month after the quarter | By the 20th of the following month |
| Calculation | Based on actual current income | Based on actual current income | Fixed — 1/12 of prior-year tax |
| Notification | Not required | Declared in annual CIT-8 return | Declared in annual CIT-8 return |
| Mid-year change | — | Only from a new tax year | Only from a new tax year |
| PLN 1,000 threshold | Yes — no payment if year-to-date tax is below PLN 1,000 | Yes — no payment if year-to-date tax is below PLN 1,000 | Does not apply — fixed amount |
Source: Art. 25(1), (1a), (1e), (6), (18) of the CIT Act (Journal of Laws 2025, item 278).
CIT advance payment deadlines in 2025
Monthly advances are due by the 20th of each month for the preceding month. Quarterly advances are due by the 20th of the month following the quarter. If the 20th falls on a Saturday, Sunday, or public holiday, the deadline shifts to the next business day.
Quarterly CIT advance deadlines for 2025
| Quarter | Period | Payment deadline |
|---|---|---|
| Q1 | January – March 2025 | 22 April 2025 (20 April = Sunday) |
| Q2 | April – June 2025 | 21 July 2025 (20 July = Sunday) |
| Q3 | July – September 2025 | 20 October 2025 |
| Q4 | October – December 2025 | 20 January 2026 |
You can skip the Q4 advance if you file your CIT-8 return for 2025 and pay the full tax due before 20 January 2026.
When are quarterly advances the better choice for a small company?
Quarterly advances are more beneficial when your company has irregular revenue, seasonal operations, or limited liquidity in the early months of the year. Fewer payments mean you hold onto your cash longer.
Scenario 1: A company with seasonal sales
If your revenue is concentrated in Q3 and Q4 (tourism, construction, pre-holiday e-commerce), quarterly advances help you avoid payments during months with no income. With monthly advances, you would still need to run calculations and track deadlines each month — even when the result is zero.
Scenario 2: A company in its first year of operation
A newly registered company is entitled to quarterly advances regardless of expected revenue. This makes sense because revenue in the first months is often zero or negligible. Four settlements per year instead of twelve means significantly less administrative effort.
In our experience at Progress Holding, newly registered sp. z o.o. companies typically generate their first meaningful income only in Q2 or Q3. Quarterly advances let you defer the first payment and keep cash available for growth.
Scenario 3: A company with steady, predictable revenue
If your company generates stable, recurring income every month, quarterly advances offer little advantage. Monthly payments spread the burden evenly and reduce the risk of a large lump-sum payment at the end of each quarter.
When are monthly advances the better choice?
Monthly advances work well when your company has stable revenue, strong liquidity, and wants to avoid large quarterly lump sums. They are also the only option for companies that have exceeded the small taxpayer threshold.
Key advantages of monthly advances
- No risk of a large one-time payment — the burden is spread across 12 smaller amounts.
- Better cash flow visibility — you know your exact tax obligation every month.
- No eligibility requirements — any CIT taxpayer can use monthly advances without restrictions.
- Easier budgeting — smaller amounts are simpler to incorporate into monthly operating budgets.
When to consider simplified advances
Simplified advances make sense when your company expects significantly higher income than in previous years. You pay a fixed, lower monthly amount (based on historical tax), and settle any difference when filing the annual CIT-8 return.
Having processed hundreds of annual returns at Progress Holding, we know that simplified advances are an effective liquidity management tool — provided you set aside funds for the year-end top-up.
What is the PLN 1,000 threshold for CIT advances?
Under Art. 25(18) of the CIT Act, you are not required to pay a monthly or quarterly advance if the tax due on year-to-date income (minus advances already paid) does not exceed PLN 1,000.
In practice, this means a company with low income in the early months of the year can legally defer its first payment until cumulative tax exceeds PLN 1,000. This rule applies to both monthly and quarterly advances but does not apply to simplified advances.
How to change your CIT advance payment method
Switching methods (from monthly to quarterly or vice versa) is only possible from the start of a new tax year. You cannot change mid-year. The method used is declared in the annual CIT-8 return for the year in question.
If you paid quarterly advances in 2025 and want to switch to monthly from 2026, you simply start paying monthly from January 2026. No separate notification is required.
Losing small taxpayer status (e.g. by exceeding the EUR 2 million revenue threshold) automatically disqualifies you from quarterly advances. From the following tax year, you must use monthly or simplified advances.
What does this look like in practice? Progress Holding’s experience
Based on serving over 500 companies at Progress Holding, we have analysed our clients’ CIT advance payment choices. Below are the most common patterns and mistakes.
How do our clients choose their payment method?
- About 55% of small companies (under PLN 2 million in annual revenue) use quarterly advances. The main motivation: fewer formalities and better cash management.
- About 30% choose monthly advances — mostly companies with regular, recurring income (IT services, leasing, wholesale).
- About 15% use simplified advances — mainly fast-growing companies looking to defer actual tax payments until year-end.
Three most common mistakes
- Failing to verify small taxpayer status. You must check annually whether your prior-year gross revenue exceeded the EUR 2 million threshold. In 2025 the limit is PLN 8,569,000; in 2026 it drops to PLN 8,517,000 due to exchange rate changes.
- Ignoring the PLN 1,000 threshold. Companies with low Q1 income forget they can legally skip advances until cumulative tax exceeds PLN 1,000 — resulting in unnecessary zero or minimal payments.
- Omitting the payment method in the CIT-8 return. The use of quarterly or simplified advances must be declared in the annual return. Missing this field can raise questions during a tax audit.
We address each of these issues proactively as part of our ongoing accounting service. At Progress Holding, we monitor thresholds, deadlines, and advance payment selections throughout the year — not only when the annual return is due.
How much does accounting support for CIT advances cost?
Accounting services for a sp. z o.o. at Progress Holding start from PLN 799 net per month. This includes CIT advance calculations (monthly or quarterly), deadline monitoring, and annual settlement support. Preparing the annual financial statements and CIT-8 return costs from PLN 1,500 net. Current pricing is available at progressholding.pl.
Frequently asked questions
Do I need to notify the tax office about choosing quarterly advances?
No. You declare the use of quarterly advances in your annual CIT-8 return for the year in which you applied this method. No prior notification is required (Art. 25(1e) of the CIT Act).
Can a company in its first year of operation choose quarterly advances?
Yes. A taxpayer starting operations in their first tax year is entitled to quarterly advances regardless of expected revenue. This right is explicitly granted by Art. 25(1a) of the CIT Act.
What happens if I miss a CIT advance payment?
Penalty interest accrues for each day of delay. In 2025, the rate is 14.5% per annum. Persistent failure to pay advances may also result in liability under the Fiscal Penal Code.
Can I switch from quarterly to monthly advances mid-year?
No. Changing the advance payment method is only possible from the start of a new tax year. The chosen method applies for the entire year, in both directions.
Can I skip simplified advance payments if my current income is zero?
No. Simplified advances are fixed (1/12 of prior-year tax) and must be paid every month throughout the year, regardless of current results. This is their main drawback when income drops.
What is the small taxpayer CIT threshold for 2026?
In 2026, the small taxpayer CIT threshold will be PLN 8,517,000 (NBP rate of 1 October 2025: PLN 4.2586/EUR). This is a decrease of PLN 52,000 compared to 2025 (PLN 8,569,000). Companies with revenue near this limit should monitor it closely.
Choosing the right CIT advance payment method is a decision that affects your company’s cash flow for the entire year. For a small company with irregular revenue, quarterly advances mean fewer payments and better cash management. For a company with stable income, monthly advances provide an even distribution of the tax burden. Before deciding, analyse your revenue patterns and consult your accountant.
Need help choosing the optimal advance payment method or ongoing accounting support? Contact Progress Holding at +48 603 232 418 or email office@progressholding.pl. We serve over 500 companies and have been helping businesses in Poland file taxes correctly and on time for over 20 years.
