A 22% rate for the largest taxpayers and up to 30% for the energy sector
On August 21 of this year, the Ministry of Finance and Economy published draft bill UD458, which provides, among other things, for the introduction of a 22% corporate income tax (CIT) rate for the largest taxpayers. At the same time, the Council of Ministers’ legislative agenda included the guidelines for draft UD459, under which certain entities in the fuel, gas, and energy sectors would be temporarily subject to a rate of up to 30%.
Both proposals are set to take effect in 2027 and could significantly impact the effective tax burden, cash flows, investment valuations, and financing models of large corporate groups.
1. Two Proposals—Two Levels of Increased CIT
UD458 is cross-sectoral in nature and increases the base CIT rate for the largest taxpayers regardless of industry. UD459, on the other hand, constitutes a sector-specific and temporary increase in the tax burden for certain fuel, gas, and electric power companies.
Proposal Scope Proposed CIT Rate
UD458 Largest taxpayers, large capital groups (PGK), and specified constituent entities of domestic and international groups 22% starting in 2027
UD459 Selected large entities in the fuel, gas, and power transmission and distribution sectors 30% / 26% / 23% in 2027–2029
2. UD458 – 22% CIT rate for the largest taxpayers
Draft UD458 proposes the introduction of a new 22% CIT rate, to take effect on January 1, 2027. This measure is intended to increase the contribution of the largest businesses to the financing of public expenditures, while maintaining the existing taxation rules for other taxpayers.
Who will be subject to the 22% rate?
Taxpayers exceeding the revenue threshold – entities whose revenue in the previous tax year exceeded the equivalent of 50 million EUR.
Tax groups – the draft also provides for the new rate to apply to tax groups.
Entities comprising GloBE groups – the rate is also to apply to taxpayers that are constituent entities of a domestic or international group as defined by the Act on Equalization Taxation.
Simplified Advance Payments
For taxpayers subject to the 22% CIT rate, the amount of the simplified advance payment is to be increased by 15.8%. This percentage reflects the ratio between the proposed 22% rate and the current 19% rate, ensuring that current payments reflect the higher target liability.
3. UD459 – Sector-Specific CIT Rates Up to 30%
Regarding UD459, the assumptions included in the Council of Ministers’ list of legislative and programmatic tasks are currently publicly available. The draft bill has not yet been published in the Official Journal of the Republic of Poland (RCL). The final scope of application and the tax calculation mechanism may therefore be subject to change.
According to the assumptions, the temporarily increased rate is to apply to the largest entities engaged in specific types of activities in the fuel, gas, and energy sectors, whose revenues exceed EUR 50 million.
Activities Covered by the Proposed Measure
- Oil and gas sector – extraction of natural gas or crude oil, trade in gaseous fuels, international trade in natural gas, and trade in crude oil.
- Liquid fuels – production of liquid fuels and trade in such fuels.
- Electricity – transmission and distribution of electricity by the largest operators.
- Tax capital groups – the higher rate is also to apply to tax capital groups if they include a company engaged in activities falling within the sectoral scope.
Schedule of Rates
Tax Year Planned CIT Rate Relative to the Current 19% Rate
2027 30% +11 percentage points; nominal tax increase of approx. 57.9%
2028 26% +7 percentage points; nominal tax increase of approx. 36.8%
2029 23% +4 p.p.; increase in the nominal tax of approx. 21.1%
From 2030 Standard rate under general rules Potentially 22% for the largest entities if UD458 enters into force
4. What do the proposals mean for taxpayers?
Verification of the scope of entities subject to the rule – groups should determine which companies will meet the revenue criterion, are members of a PGK or constituent entities of GloBE groups, and conduct business activities in the sectors specified in UD459.
Deferred tax assets and liabilities – the future value of tax losses, temporary differences, and plans for utilizing tax assets should be analyzed.
Tax losses and timing of expense recognition – it may be important to verify the ability to utilize losses, the investment schedule, depreciation, and the timing of revenue and expense recognition, in accordance with statutory rules.Transfer pricing and allocation of functions – it is worth assessing whether the current allocation of functions, assets, and risks, as well as the rules for intra-group settlements, remain arm’s-length and effective under a significantly higher CIT rate.
5. Status of Legislative Work
Draft Status as of August 27, 2026 Expected date
UD458 Draft published in the Official Journal; stage of government
coordination and consultations Generally effective as of January 1, 2027
UD459 Provisions included in the Council of Ministers’ work plan;
no draft bill published Sector-specific rates effective from 2027
How can we help?
We offer support in analyzing the impact of the proposed rates on the operations of individual organizations, reviewing the effectiveness of tax and financing structures, and preparing an action plan ahead of 2027.
We will monitor the legislative process and keep you informed once the regulations are finally enacted and how they will affect the day-to-day operations of specific companies.
If you have any questions, please feel free to contact us.
KONTAKT
E: magdalena.keska-nowicka@pl.Andersen.com
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