Banks will pay higher CIT. President Karol Nawrocki signed the act

President Karol Nawrocki signed an act increasing the CIT tax for banks – the Chancellery of the President announced on the X platform.

“I also signed an act increasing taxes for banks. It cannot be that the tax burden is borne by an average citizen or a small enterprise, while foreign corporations or large financial institutions obtain record profits. In recent years, banks have achieved above-average profits,” the president said in a recording posted on the X platform.

“I therefore decided that it was justified to direct a larger part of these profits to the state. Especially in the face of growing needs, including those related to financing the security of the Republic of Poland and the expansion of our armed forces,” he added.

The amendment to the Corporate Income Tax Act and the Act on Tax on Certain Financial Institutions increases the corporate income tax rate paid by banks from the current 19%. to 23 percent, while in 2026 this rate will be 30 percent and in 2027 – 26 percent. In turn, start-up entities whose revenues did not exceed EUR 2 million would pay a rate of 13%. (currently this rate is 9%). However, in 2026 this rate will be 20 percent, and in 2027 – 16 percent.

The act includes – apart from an increase in CIT rates for banks – also provisions regarding a tax reduction on certain financial institutions, i.e. the so-called bank tax. The tax is currently 0.0366 percent. the tax base will be reduced to 0.0329%. tax base, and from 2028 it will be 0.0293%. tax bases.

Pursuant to the Act, the provisions regarding changes in bank income tax are to enter into force on January 1, 2026, and those relating to banking tax – on January 1, 2027.

The provisions of the act are criticized by banks. The Polish Bank Association argues that increasing the income tax rate for only one sector is unconstitutional and unfair. (PAP Business)

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