Poland Adopts Legislation including Reduced Tax Rate for Small Businesses, Clarification of Polish-Source Income and Anti-Avoidance Measures

On 5 September 2016, Poland's parliament adopted legislation amending the country's individual and corporate income tax laws. The main measures are summarized as follows.

Reduced Tax Rate for Small Taxpayers and Startups

A reduced corporate income tax rate of 15% is introduced for small taxpayers with annual sales below EUR 1.2 million and for startups for the first year of operations. The reduced rate is not available for new operations resulting from the restructuring of a former taxpaye…