WARSAW (Reuters) -Poland plans to increase the corporate income tax rate paid by banks to 30% in 2026, from the current 19%, to finance increased defence spending, Deputy Finance Minister Jaroslaw
Poland plans to increase corporate income tax for banks
Poland's Corporate Income Tax Changes
WARSAW (Reuters) -Poland plans to increase the corporate income tax rate paid by banks to 30% in 2026, from the current 19%, to finance increased defence spending, Deputy Finance Minister Jaroslaw Neneman was quoted as saying by the state-controlled news agency PAP.
Defence Spending and Tax Revenue
The measure is intended to help finance Poland's defence needs, he said, adding the rate would be lowered to 26% in 2027 and further to 23% in subsequent years.
Gradual Tax Rate Adjustments
Poland has been ramping up defence spending since the start of the war in neighbouring Ukraine and plans to allocate 5% of gross domestic product to its armed forces in 2026.
Projected Revenue Increases
The Finance Ministry said in a statement that it also plans a gradual reduction in the banking tax. The tax is paid by financial institutions and depends on their assets.
"The Finance Ministry estimates that these changes will result in an increase in corporate income tax revenues by approximately 6.5 billion zlotys in 2026," the ministry said in a statement.
"In total, over the next 10 years, the proposed solutions are expected to generate over 20 billion zlotys for the budget, representing a significant contribution from the banking sector to financing state budget expenditures...," it added.
($1 = 3.6692 zlotys)
(Reporting by Anna Koper and Karol Badohal; Editing by Ros Russell)
