Newsletter No. 4/2021

1. Reduced CIT rate of 9%

Currently, the standard CIT rates are 19% and 9%. Nevertheless, some income is taxed at a flat rate of 5%, 10% or 20%, while in the case of companies paying ‘Estonian CIT’,the tax rates are 15 % and 25%. A preferential CIT rate of 9% applies only to income (revenue) other than capital income, which is always taxed at 19%. To qualify for a reduced rate,tax payers must meet two requirements.

2. National Register of Debtors

The National Register of Debtors (Krajowy Rejestr Zadłużonych, KRZ) has been a hot topic for quite some time, having been initially set out in the Act on the National Register of Debtors of 6 December 2018. This public database will now enter into force on 1 December 2021 – a year later than expected.

It is intended to be a reliable source of information about any entities (individuals and business entities) that are insolvent, are at risk of insolvency and those with respect to whom debt enforcement proceedings have proved unsuccessful and have been discontinued.