In response to the business community’s feedback, the Ministry of Finance in Poland plans to introduce changes to the current tax relief system. The aim of these changes is to avoid exposing entrepreneurs to the new global tax being introduced in 2025. What exactly does replacing CIT and PIT reliefs with grants mean? Here are the key points: 

• “Quasi-Grant” Structure: Instead of traditional reliefs, the structure will be organized in a “quasi-grant” manner. This means that reliefs will function more like grants, facilitating long-term investment planning. This is particularly important for companies benefiting from reliefs in special economic zones and the Polish Investment Zone. 

• Zone Reliefs as a Form of Grant: Zone reliefs, such as those in SEZ and PSI, can be interpreted as a type of grant provided upon meeting certain formalities. Although they do not take the form of cash, they use tax settlement mechanisms. Reformulating CIT relief regulations can help reduce the impact of these reliefs on the global tax. 

• Other Measures: Additionally, there are many other measures that can be applied to minimize the impact of reliefs on the global tax. Examples include abolishing the requirement to use the highest depreciation rates and prohibiting the deduction of losses by companies in SEZ and PSI. 

It is worth monitoring the development of these changes, as they can significantly impact tax policy and business operations in Poland.