CIT

The IP Box (Innovation Box) is a special tax regime introduced in Poland in 2019 under the Corporate Income Tax Act and the Personal Income Tax Act. It allows qualifying income from eligible intellectual property to be taxed at a preferential 5% rate instead of the standard rates (19% /9% CIT and 12%-32% PIT or 19% PIT). The aim is to encourage innovation, R&D, and the development of new technologies in Poland.

The Estonian CIT, or flat rate on corporate income, is a popular tax arrangement that defers taxation of company profits until they are distributed. However, to take advantage of this favorable system, entrepreneurs must meet several conditions. One of the most important is the employment requirement. In this article we explain what this condition is and how to meet it.

The Estonian CIT is an attractive form of taxation, but its use comes with certain restrictions on the company’s structure. Can a silent company benefit from this tax regime?

The introduction of the Estonian CIT and the family foundation under the “Polish Order” has opened up new tax optimization opportunities for entrepreneurs. Both of these forms have their unique advantages and disadvantages, which are worth considering before deciding on the right structure for your business.