The tax office throws out of the Estonian CIT. All because of the signature

The first decisions are made, which shows that if the financial statement on the day preceding the transition to Estonian CIT was not signed on time, the change in taxation was ineffective – he writes in the Tuesday issue of “Dziennik Gazeta Prawna”.

Therefore, companies should still pay tax on general terms (classic CIT). And since they did not do it, they have tax arrears that should be regulated with interest. They can be millions of amounts – we read in “DGP”.

“Deprivation of companies the possibility of using the Estonian CIT only due to the delay in signing the report is a disproportionate punishment, especially since the Ministry of Finance itself encouraged to switch to this form of taxation” – emphasizes Natalia Kamińska -Kubiak, a manager and tax advisor at Grant Thornton, quoted in the journal.

The newspaper adds that the problem mainly applies to companies that switch to Estonian CIT during the year. They must meet the conditions from art. 28j para. 5 of the CIT Act. Pursuant to this provision, the company may go to the Estonian CIT during the financial year, if: “On the last day of the month preceding the first month of taxation, it closes the accounting books and draws up the financial statements in accordance with the accounting provisions.”

“DGP” also reminded that the problem regarding the signature under the report – or rather its lack – appeared this year when adverse interpretations of the Director of the National Tax Information were published. “In December 2024, the director of KIS believed that the subsequent signature of a member of the management board (than within three months from the day preceding the transition to a lump sum) did not deprive the company of the right to apply the Estonian lump sum. The condition – as he explained – is to prepare the financial statement within the time limit (within three months from the day preceding the transition to the Estonian lump sum) and confirmation of this signature of the person responsible for keeping the books,” writes the newspaper. (PAP)

BPK/ LM/