Warsaw, Poland – President Karol Nawrocki has signed into law a controversial overhaul of Poland’s financial sector taxation, increasing the corporate income tax (CIT) rate for banks while simultaneously adjusting the tax on certain financial institutions. The legislation, announced today by the Presidential Office, aims to shift the tax burden toward highly profitable banks amid growing national needs, including defense spending. The move has already drawn sharp criticism from the Polish Bank association, which alleges the new regulations are unconstitutional.
2025-11-27 20:12, akt.2025-11-27 20:27
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2025-11-27 20:12
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2025-11-27 20:27
President Karol Nawrocki has signed legislation increasing the corporate income tax (CIT) rate for banks, the Presidential Office announced on X.
The President stated that the increased tax burden should fall on profitable institutions rather than individual citizens or small businesses, citing recent strong earnings within the banking sector. “I have also signed a law increasing taxes on banks. It cannot be the case that the tax burden is borne by the average citizen or small businesses, while foreign corporations or large financial institutions generate record profits. In recent years, banks have achieved above-average profits,” President Nawrocki said in a statement posted on X.
“I therefore considered it appropriate to direct a larger portion of these profits to the state. Especially in the face of growing needs, including those related to financing the security of the Republic and expanding our armed forces,” he added.
The amendment to the Corporate Income Tax Act and the Act on Tax on Certain Financial Institutions raises the CIT rate paid by banks from the current 19% to 23%. This rate will further increase to 30% in 2026 and then decrease to 26% in 2027. New entities with revenues not exceeding €2 million will pay a rate of 13% (currently 9%), which will rise to 20% in 2026 and 16% in 2027. This move comes as governments globally reassess tax policies for the financial sector.
In addition to the CIT increase for banks, the legislation includes provisions to reduce the tax on certain financial institutions, often referred to as the “bank tax.” This tax, currently at 0.0366% of the tax base, will be lowered to 0.0329% in 2027, and further to 0.0293% in 2028.
According to the new law, the provisions regarding changes to bank income tax will take effect on January 1, 2026, while those relating to the bank tax will come into force on January 1, 2027.
The banking sector has voiced criticism of the new regulations. The Polish Bank Association argues that raising the income tax rate for a single sector is unconstitutional and unfair. (PAP Business)
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