Estonian CIT tax audits in Poland – what irregularities are tax authorities finding?
Estonian CIT tax audits in Poland examine the validity of tax elections, statutory eligibility requirements and tax settlements.
Between 2022 and mid-2025, Polish tax authorities identified 642 invalid Estonian CIT elections following verification of ZAW-RD notifications.
From early 2025 to March 2026, 71 Estonian CIT customs and fiscal audits were completed, identifying almost PLN 42 million in tax shortfalls among 64 taxpayers.
According to Ministry of Finance data, Estonian CIT tax audits remained ongoing for 19 entities in Poland as at 10 September 2026.
Tax arrears established through Estonian CIT audits covered by the Polish tax administration’s available statistics totalled PLN 69.3 million.
A draft approved by the Polish government on 22 September 2026 proposes abolishing mid-year Estonian CIT elections, with changes generally planned for 1 January 2027.
Correct tax calculations do not guarantee eligibility
A Polish company may calculate its tax correctly while failing to meet the statutory conditions for Estonian CIT.
Loss of eligibility depends on the type of breach
Under Polish CIT law, certain violations result in losing Estonian CIT eligibility at the end of the preceding tax year.
Corporate changes can affect Estonian CIT eligibility
Changes in shareholders, employment levels or revenue composition may affect a company’s entitlement to the regime.
Proposed amendments do not yet remedy past failures
As at 21 October 2026, proposed Polish tax amendments remain under legislative review and cannot independently remedy earlier formal deficiencies.
Estonian CIT tax audits in Poland focus primarily on whether companies have validly elected the lump-sum taxation of corporate income and continue to satisfy the applicable eligibility requirements. Ministry of Finance data published in May 2026 shows that tax authorities identified irregularities involving ZAW-RD notifications, mid-year elections, employment conditions, shareholder structures and passive income. Between the beginning of 2025 and March 2026, completed customs and fiscal audits identified tax shortfalls totalling almost PLN 42 million among 64 taxpayers.
In this article:
Estonian CIT tax audits in Poland – Ministry of Finance findings
The Polish tax administration examines companies applying Estonian CIT, formally known as the lump-sum taxation of corporate income, which is an alternative method of corporate income taxation (CIT) in Poland. Ministry of Finance figures indicate that particular attention has been paid to the validity of companies’ elections and their compliance with statutory eligibility requirements.
These examinations therefore go beyond checking whether a business calculates and pays its tax correctly. The authorities also establish whether the company was entitled to elect Estonian CIT in the first place and whether it retained that entitlement in subsequent years.
According to the Ministry of Finance, between 2022 and mid-2025, tax authorities identified irregularities relating to the election and application of Estonian CIT. The published figures distinguish the following cases:
| Type of irregularity | Number of cases |
|---|---|
| Invalid Estonian CIT election identified following verification of ZAW-RD notifications | 642 |
| Failure to satisfy the notification requirement for electing lump-sum taxation (Article 28j(1)(7) of the Polish CIT Act) | 345 |
| Failure to meet the requirements for switching to Estonian CIT during a tax year (Article 28j(5) of the Polish CIT Act) | 99 |
| Failure to satisfy the conditions specified in Article 28j(1)(2)–(6) of the Polish CIT Act | 424 |
As the Ministry of Finance explained, these categories are not mutually exclusive. A single verification procedure could identify breaches of more than one Estonian CIT eligibility requirement. Consequently, the figures should not be added together.
The final category includes violations concerning legal form, shareholder structure, employment, the proportion of passive income and financial reporting requirements.
The findings demonstrate that formal deficiencies and failures to satisfy organisational requirements are significant sources of tax risk. A company may continue filing and settling its taxes under the Estonian CIT regime despite no longer meeting all the conditions required to apply it.
How many Estonian CIT tax audits have Polish authorities conducted?
According to Ministry of Finance data, from the beginning of 2025 to March 2026, authorities initiated 40 customs and fiscal audits concerning Estonian CIT and completed 71 such audits. Tax shortfalls totalling almost PLN 42 million were identified among 64 taxpayers.
The number of completed audits exceeded the number initiated during the period because some proceedings concluded within that timeframe had begun in previous years.
The scale of Estonian CIT adoption is also relevant. In 2025, almost 20,000 taxpayers submitted CIT-8E returns, most of them limited liability companies.
However, these figures cannot be used to calculate the overall proportion of companies in which irregularities are detected. Formal eligibility checks and customs and fiscal audits cover different activities and reporting periods.
The published statistics primarily highlight two areas of risk: invalid elections to the Estonian CIT regime and irregularities identified in companies already applying lump-sum taxation.
Latest Estonian CIT audit statistics – September 2026
The Ministry of Finance provided more recent information in its response of 23 September 2026 to parliamentary question No. 19508. As at 10 September 2026, tax audits or customs and fiscal audits concerning Estonian CIT were ongoing for 19 entities. The total value of tax arrears established through audits of the lump-sum corporate income tax regime, as covered by the tax administration’s available statistics, amounted to PLN 69.3 million. These figures relate to periods during which Estonian CIT audits could be separately identified in administrative records.
The newer figures are not directly comparable with those published in May 2026 because they cover different periods and categories of audit activity.
What do Polish tax authorities examine during Estonian CIT audits?
Based on Ministry of Finance data, several areas are particularly important when assessing whether a company is applying the Estonian CIT regime correctly.
ZAW-RD notification and the validity of the Estonian CIT election
One of the most frequently identified problems is an invalid Estonian CIT election, including errors involving the ZAW-RD notification. Under Article 28j(1)(7) of the Polish CIT Act, a taxpayer must submit the notification by the end of the first month of the first tax year in which it intends to apply lump-sum taxation.
Additional requirements apply when switching to Estonian CIT during a tax year. This involves closing the accounting books and preparing financial statements in accordance with Polish accounting regulations.
Failure to satisfy these requirements may lead the authorities to challenge the validity of the election, potentially requiring a reassessment of how the company’s income should have been taxed.
For a detailed explanation of the applicable requirements, deadlines and consequences of non-compliance, see our article: Switching to Estonian CIT – key deadlines and risks.
Shareholder structure and legal form
Polish tax authorities also verify whether a company meets the requirements concerning its legal form and ownership structure.
Estonian CIT is available only to certain types of companies. Among other conditions, their shareholders must be exclusively natural persons. Restrictions also apply to holding shares or other equity interests in other entities.
For companies belonging to larger corporate groups, changes in ownership and corporate reorganisations require particular attention. A transaction that alters the shareholder structure may affect the company’s ability to continue applying Estonian CIT.
Employment requirements and the proportion of passive income
Compliance with the employment requirement set out in Article 28j of the Polish CIT Act is another area subject to verification. Relevant factors include the number of people employed, the types of contracts, employment duration and statutory exemptions or preferential rules applicable to certain taxpayers.
Revenue composition is also examined. As a general rule, less than 50% of a company’s revenue earned in the preceding tax year, including VAT due, may come from the passive income sources specified in the legislation. These include, among others, interest, receivables and certain related-party transactions that generate no genuine economic added value or only negligible added value.
For businesses providing services to other entities within a corporate group, this means assessing not only revenue amounts but also the nature of the services supplied and the substance of their actual business activities.
Accounting and financial reporting requirements
Eligibility for Estonian CIT also depends on compliance with accounting and financial reporting requirements. Tax authorities may examine the accuracy of accounting documentation and whether the taxpayer prepares financial statements in accordance with International Accounting Standards (IAS) during the period in which it is subject to lump-sum taxation.
For Polish companies operating within multinational groups, it is particularly important to distinguish between group reporting policies and the requirements applicable to the Polish entity’s separate financial statements.
Estonian CIT eligibility checks vs. tax settlement audits
Estonian CIT eligibility checks establish whether a company validly elected lump-sum taxation and retained its entitlement to apply the regime. Tax settlement audits, by contrast, may examine whether the company correctly recognised taxable income and calculated the tax payable.
This distinction is important when interpreting the Ministry of Finance statistics.
In the first case, authorities may review ZAW-RD notifications, shareholder structures, employment conditions and passive income. In the second, they may examine the taxation of distributed profits, hidden profits, expenses unrelated to business activities and other taxable income categories specified in Article 28m of the Polish CIT Act.
A company that satisfies all Estonian CIT eligibility conditions may still make errors in its tax settlements. Conversely, correctly calculating the tax due does not remedy defects in the original election of the regime.
A comprehensive tax risk assessment therefore requires these two areas to be examined separately.
Estonian CIT audits · Poland
Estonian CIT audits in Poland: eligibility vs. tax settlements
Polish tax authorities examine Estonian CIT in two different ways — and correctly calculating the tax due does not remedy a defective election.
Estonian CIT eligibility checks
Establish whether a company validly elected lump-sum taxation and retained its entitlement to apply the regime.
Authorities may review
ZAW-RD (Estonian CIT election notifications)
Shareholder structures
Employment conditions
Passive income
Possible consequence
Loss of entitlement to Estonian CIT
Tax settlement audits
May examine whether the company correctly recognised taxable income and calculated the tax payable.
Authorities may examine
Taxation of distributed profits
Hidden profits
Expenses unrelated to business activities
Other taxable income categories (Article 28m of the Polish CIT Act)
Possible consequence
Payment of outstanding tax liabilities
Passing one check does not replace the other
A company that satisfies all Estonian CIT eligibility conditions may still make errors in its tax settlements. Conversely, correctly calculating the tax due does not remedy defects in the original election of the regime.
Source: getsix®, based on Ministry of Finance data on Estonian CIT audits in Poland; Polish CIT Act (Art. 28m).
Consequences of irregularities identified during Estonian CIT audits
The consequences depend on the type of violation identified. Failure to satisfy eligibility requirements may result in the loss of entitlement to Estonian CIT, while errors in tax settlements may require the company to pay outstanding tax liabilities.
Under Article 28l of the Polish CIT Act, the effective date of losing eligibility depends on the nature of the breach. Failure to meet the passive income or employment requirements results in the loss of eligibility at the end of the tax year in which the violation occurred. By contrast, certain breaches concerning ownership structure, holdings in other entities or accounting records result in the loss of eligibility at the end of the tax year preceding the year in which the relevant circumstances arose.
Loss of eligibility · Article 28l, Polish CIT Act
When is Estonian CIT eligibility lost in Poland?
Under Article 28l of the Polish CIT Act, the effective date of losing Estonian CIT eligibility depends on the nature of the breach.
01
Passive income or employment
Failure to meet the passive income or employment requirements results in the loss of eligibility at the end of the tax year in which the violation occurred.
Preceding tax year
Year of the breach
Eligibility lost
02
Ownership structure, holdings or accounting records
Certain breaches concerning ownership structure, holdings in other entities or accounting records result in the loss of eligibility at the end of the tax year preceding the year in which the relevant circumstances arose.
Preceding tax year
Year of the breach
Eligibility lost
Where the validity of an election is challenged
It may be necessary to determine whether the company was entitled to apply Estonian CIT from its declared starting date. This may require a reassessment of tax settlements for earlier periods.
The assessment must establish
Which requirement was breached
When the violation occurred
Which legal provisions applied at that time
Source: getsix®, based on Polish CIT Act (Art. 28l) and Ministry of Finance data on Estonian CIT audits in Poland.
Where the validity of an Estonian CIT election is challenged, it may also be necessary to determine whether the company was entitled to apply the regime from its declared starting date.
This may require a reassessment of tax settlements for earlier periods.
Not all irregularities have identical consequences. The assessment must establish which requirement was breached, when the violation occurred and which legal provisions applied at that time.
Planned Estonian CIT changes and formal compliance failures
A draft tax amendment approved by the Polish Council of Ministers on 22 September 2026 may be particularly relevant in the context of Estonian CIT audits.
The Ministry of Finance announced a proposed measure addressing taxpayers who, when electing Estonian CIT during a tax year, committed certain formal deficiencies relating to the preparation of financial statements.
The draft also proposes abolishing the option to elect Estonian CIT during a tax year and clarifying how the employment requirement may be satisfied. Under the latter proposal, employment under employment contracts could be combined with engagement under other types of contracts.
These proposals are particularly significant in light of the Ministry of Finance statistics, as some of the irregularities identified relate specifically to switching to lump-sum taxation and satisfying formal requirements.
According to the Ministry of Finance, the changes are generally intended to take effect on 1 January 2027.
How can companies reduce the risk of Estonian CIT non-compliance?
Ministry of Finance data indicates that an assessment of Estonian CIT compliance should cover both the documentation supporting the original election and the eligibility conditions that must continue to be satisfied in subsequent tax years.
Companies should verify the following:
- Whether the Estonian CIT election was validly made and properly documented.
- Whether changes in ownership or corporate organisation have affected compliance with statutory requirements.
- Whether employment levels meet the requirements applicable in the relevant tax year.
- Whether the proportion of passive income remains below the permitted threshold.
- Whether accounting documentation and financial reporting comply with the requirements of the lump-sum taxation regime.
- Whether taxable income, including potential hidden profits, is correctly identified and accounted for.
Ongoing verification is particularly important for companies undergoing reorganisations, changing their employment models or conducting a substantial proportion of their transactions with related parties. In practice, risks may arise not only when Estonian CIT is initially elected but also from changes in the company’s business activities in subsequent years.
The published Ministry of Finance data confirms that managing tax compliance risks under Estonian CIT requires companies to review both the formal eligibility conditions and the accuracy of their ongoing tax settlements.
Where there is uncertainty about the validity of an Estonian CIT election, compliance with statutory requirements or the consequences of identified irregularities, an individual assessment is advisable. getsix® tax advisory services in Poland can help businesses assess their position, identify potential tax risks and determine appropriate next steps.
This article was written by the getsix® Editorial Teamgetsix® provides accounting, tax advisory, HR and payroll, and business consulting services, supporting companies operating in Poland. The getsix® Editorial Team prepares practical information that makes Polish accounting, tax, and HR and payroll matters easier to understand.
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