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Reduction of CIT tax rate for small businesses-changes from 2019 year

◾ Who are the changes?

Tax changes will be applied in small and average number of companies which do not exceed 1.2 mln. Euro. The reduced rate will also apply to entrepreneurs. For companies that pay taxes, CIT, next year will introduce a new category of tax benefits, which is called IP Box. It will be used by a company that receives income from intellectual property (IP). Entrepreneurs who develop modern technologies or solutions. To use IP-box it is necessary to conduct research and development.

What will be the tax amount?

From January 1, 2019 new tariffs will be applied: 5% will be used by IP Box Company; 9%-for companies that start their business. Euro 19%-for companies with incomes exceeding 1.2 mln. Euro.

How much does an entrepreneur pay?

The rate of 19% will remain unchanged, the rate of 15% is reduced to 9%. Reducing CIT can be an incentive for entrepreneurs to move to a normal business with legal personality.