Poland to Raise Corporate Tax to 22% in Major Fiscal Shift for Multinationals and Middle Class

The reform represents a calculated attempt to reshape the social contract in Central Europe’s largest economy. By explicitly targeting high earners and large corporate groups, Tusk’s administration is betting that redistributive tax policy can shore up support among skilled professionals and middle-income households without stalling broader economic momentum.

Targeted Relief for Middle Earners

At the heart of the personal income tax adjustments is a structural revision of the tax brackets aimed at easing the burden on middle-income workers. The threshold for the secondary income tax rate will rise from 120,000 PLN to 130,000 PLN annually.

To smooth out the steep transition into higher tax brackets, the Ministry of Finance is introducing a brand-new intermediate rate. Income falling between 130,000 PLN and 150,000 PLN per year will now be taxed at 24 per cent, replacing the top 32 per cent marginal rate that previously applied above the primary threshold.

Government projections indicate that approximately 3.5 million taxpayers stand to benefit from these personal income tax modifications. For individual middle-class workers, the measures could yield annual tax savings of up to 3,600 PLN, directly boosting the disposable income of skilled employees, specialists, and small business owners operating under general taxation rules.

Squeezing High Earners and Corporate Giants

To fund this relief without widening the fiscal deficit, Warsaw is turning to corporate balance sheets and top-tier earners. The corporate income tax (CIT) rate for large companies with annual revenues exceeding €50 million (roughly 200 million PLN), as well as corporate capital groups, will rise from 19 per cent to 22 per cent. This increase specifically targets large national firms and foreign multinationals operating within Poland's domestic market.

Simultaneously, high-income individuals face tighter fiscal demands across two fronts:

• Solidarity Surcharge: Individuals earning over 1 million PLN annually will see their solidarity surcharge increase by one percentage point, bringing the total levy to 5 per cent.

• Lump-Sum Tax Cap: The eligibility threshold for the flat-rate lump-sum tax on revenues (ryczałt) will be sharply reduced to €250,000 (approximately 1 million PLN). This curtailment effectively closes off a popular tax-planning route previously utilized by high-earning individuals to minimize their income tax liabilities.

By tightening these loopholes and raising marginal rates on top earners, the government is deliberately concentrating the incremental tax burden on the country's wealthiest citizens and most lucrative commercial enterprises.

Economic and Political Implications

The redistribution strategy creates clear economic winners and losers. Qualified professionals, salaried specialists, and small and medium-sized enterprises stand to gain noticeable relief. Conversely, foreign corporations, large domestic business groups, and millionaires will absorb the vast majority of the new fiscal weight.

However, translating these announcements into law will test the government's political capital. Scheduled to take effect in 2027, the legislative package must navigate the complete parliamentary process before reaching the president for final signature.

Given the anticipated pushback from opposition parties and business lobbying groups, the eventual statutory framework may face substantial negotiation and amendment in parliament. Business commentators and economic outlets are already weighing how this shift in corporate taxation and wealth levies will impact investment sentiment and long-term economic competitiveness.