WARSAW, June 17 (Reuters) – A scheme to remove corporate income tax from many small and medium sized firms will cost Poland almost 5 billion zlotys ($1.26 billion) in its first phase, Prime Minister Mateusz Morawiecki said on Wednesday.
Poland is set to introduce the so-called Estonian corporate income tax system, named after its country of origin, in 2021.
This will mean that companies with annual revenue of less than 50 million zlotys will be exempt from corporate income tax if profits are retained, Morawiecki said, adding that 97% of Polish companies fall into this bracket.
“The world is changing, supply chains have been torn,” Morawiecki was quoted as saying on his official Twitter account.
“We have ideal conditions for investing. We will not tax companies that will invest in new solutions,” Morawiecki added of the new system, which his office said could be used by as many as 200,000 companies. ($1 = 3.9611 zlotys) (Reporting by Alan Charlish; Editing by Alexander Smith)
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