Poland MOF Clarifies “Estonian” Tax Regime for SMEs Intended to Provide Coronavirus Relief

The Polish Ministry of Finance June 18 clarified the optional “Estonian” corporate income tax (CIT) regime for small and medium enterprises (SMEs), effective from financial year 2021, intended to provide relief due to the coronavirus pandemic. The regime includes a “full” model that taxes only distributed profits, as in Estonia, or a special investment model that allows the write-off of investments as the cost of obtaining income. The regime allows SMEs, including LLCs and joint-stock companies, that allocate funds for the development of their activities to not pay CIT. The ministry clarified that the regime: 1) applies to SMEs with ...