Senate restores 22% CIT for large firms and cuts flat-tax cap to 250,000 euro

What the Senate approved

The Senate voted on Tuesday, 27 October 2026 on a bill amending the personal income tax (PIT) law and the law on the flat-rate tax on certain income (ryczałt). Sixty-two senators voted for, none voted against, and 23 abstained. The chamber adopted amendments that reverse two changes the Sejm had made earlier. The Sejm will now review the Senate's amendments.

Corporate tax and PIT thresholds

The amendments restore the government's proposed rise in corporate income tax (CIT) from 19% to 22% for companies with revenue above 50 million euro, a provision the Sejm had struck out. They also delete the annual indexation of PIT thresholds that the Sejm had inserted. Under the bill, the first PIT threshold rises from 120,000 zł to 130,000 zł, and income below it stays taxed at 12%. A new 24% bracket covers income above 130,000 zł up to 150,000 zł, while income above 150,000 zł is taxed at 32%.

Below 130,000 zł12%

130,000 to 150,000 zł24%

Above 150,000 zł32%

Below 130,000 zł

12 %

130,000 to 150,000 zł

24 %

Above 150,000 zł

32 %

Data from the article text

Flat-rate tax and the solidarity levy

The bill cuts the revenue limit for the flat-rate tax from 2 million euro to 250,000 euro, which equals 1,094,250 zł a year at the NBP rate of 1 October 2026. Companies above the new threshold would lose the right to use the flat-rate tax, and eligibility for 2027 depends on revenue earned in 2026. The solidarity levy, charged on income above 1 million zł a year, rises from 4% to 5%. Income from the IP Box above 1 million zł could also fall under the levy, adding 20,000 zł in tax. Well-earning flat-rate taxpayers, family foundations and millionaires subject to the levy are also expected to pay more.

What a flat-rate business could pay

Joanna Łuksza, head of the accounting experts team at IFIRMA.PL, ran a simulation at annual revenue of 1,094,250 zł, the level of the new limit, assuming no business costs. At the 8.5% flat rate the tax is 93,011.25 zł, and with the annual health contribution of 17,940.48 zł, based on 2026 rates, the total burden reaches 110,951.73 zł. Moving to the linear tax would raise the burden to 261,525.75 zł, which is 150,574.02 zł more, while moving to the progressive scale would bring it to 417,442.50 zł, or 306,490.77 zł more. The expert cautioned that the figures are only illustrative.

“The calculations are illustrative. They do not include business costs, social contributions, reliefs or deductions of the health contribution.”

The simulation also leaves out the solidarity levy, which could add to the burden once the flat-rate tax is lost. Businesses paying the lowest flat-rate rate lose the most, because the gap between that rate and the progressive scale is widest for them.

Flat-rate 8.5% with health contribution110,951.73

Linear tax261,525.75

Progressive scale417,442.5

Flat-rate 8.5% with health contribution

110951.73 zł

Linear tax

261525.75 zł

Progressive scale

417442.5 zł

Data from the article text

What comes next

Grzegorz Bierecki, a PiS senator, submitted amendments for the party's Senate club during the debate, saying they were meant to 'reduce the tax burden' that the law places on Polish entrepreneurs. The bill then returns to the Sejm for a decision on the Senate's changes. The new rules are set to apply from 1 January 2027. Anyone planning to use the flat-rate tax in 2027 should check their 2026 revenue, since that year decides eligibility.