Poland’s Ministry of Finance is reconsidering its forthcoming requirements for businesses to submit electronic corporate income tax reports under the JPK_CIT system, originally set to take effect in January 2025. The JPK_CIT initiative, part of the country’s wider tax digitisation strategy, mandates that companies provide detailed data on their corporate tax calculations, a step aimed at improving transparency and compliance across industries.
Understanding the JPK_CIT Framework
Under the JPK_CIT system, corporations will need to submit structured, electronic reports detailing their financial information, such as balance sheets and tax results. This system aligns with Poland’s broader digital tax reporting efforts, similar to the JPK_VAT structure already in place. The JPK_CIT file, submitted annually in XML format along with the CIT-8 tax return, will allow tax authorities to cross-check revenue, deductible expenses, and tax bases, identifying any discrepancies.
The reporting requirement is currently set to begin on January 1, 2025, for businesses with revenues exceeding EUR 50 million, with smaller companies to follow suit in 2026. However, Poland’s Ministry of Finance has recently suggested potential exemptions for certain taxpayers, with further clarifications expected.
Possible Changes and Industry Impact
A new proposal, announced on September 10, 2024, hints at potential adjustments to the JPK_CIT rollout, such as exemptions or deadline extensions for certain businesses. Although the framework is not yet finalized, these updates suggest a possible relaxation of rules for some companies, particularly smaller enterprises.
Medium and large businesses are still expected to comply with the January 2025 deadline, submitting comprehensive financial details. Non-compliance could lead to fines or increased scrutiny from tax authorities.
What Businesses Should Expect
For companies that fall under this mandate, preparation is essential. The JPK_CIT requirement is part of a larger effort to improve tax collection efficiency and prevent evasion. With possible changes to the timeline or exemptions, companies must remain vigilant and adapt their tax reporting systems accordingly.
