CIT compliance

Frequent changes in tax legislation, complex regulations, and their different interpretations very often lead to uncertainty. They not only expose the company to incorrect decisions, but also to the risk of non-compliance with the provisions of the act on corporate income tax.

That is why CIT compliance is becoming a more and more comprehensive area of services required by entrepreneurs. When company owners do not keep the knowledge of their accounting team and services up-to-date, they take the unnecessary risk of irregularities in the settlements of the enterprise, exposing themselves to significant financial consequences in form of tax arrears.

CIT settlement

Since we have an internal team of CIT experts, MDDP Outsourcing offers you accounting services that also cover continuous support in CIT compliance, as a part of which:

• we calculate the amount of payable CIT and advancements,
• we offer support in calculating the deferred tax,
• we provide support within the scope of automation of tax calculation processes,
• we verify the correctness of calculations made by the customers,
• we prepare annual tax returns,
• we help in the preparation for tax audits,
• we perform comprehensive tax reviews.

Corporate Income Tax – its meaning for the entrepreneur

CIT (Corporate Income Tax) is the income tax paid by legal entities. The calculation method for this tax does not only depend on the way the enterprise is taxed but also on the legal form of the company and on other factors. Correct CIT calculation is necessary for the proper functioning of an enterprise. It also allows avoiding legal and tax-related consequences imposed by supervisory authorities.

In the case in which you calculate the amount of income tax and advancements by using the services of internal sections, we propose verification of those calculations. Thanks to modern IT solutions, we eliminate the risk of errors, ensuring the correctness of the calculations.

According to regulations of law, CIT payers are legal persons, share-holding companies in the process of formation, limited joint-stock partnerships, and capital groups, which consist of at least two commercial law companies. The obligation to submit a tax statement applies to all taxpayers of the corporate income tax, except for those exempted under the act on corporate income tax.

Entities with their registered office and management located in Poland are obligated to apply tax to all income, regardless the place at which it was generated. However, if the company’s registered office or management is outside Poland, the tax obligation refers only to proceeds generated in Poland.

A gap in CIT, i.e. the difference between proceeds payable to the state budget and its actual income may result in increased monitoring over the entrepreneur. Thanks to our knowledge of international tax law, we will successfully guide you through the audit process. As a part of the CIT compliance service, we will indicate the areas of risk, help you gather all the necessary documents, and facilitate contacts with relevant authorities.

CIT reviews

As a part of the CIT compliance service provided by MDDP Outsourcing, we also conduct tax reviews, i.e. examinations in order to verify the correctness of the booking and settlement processes for CIT in a particular period. It may cover all taxes or just specific areas, e.g. the area connected with the obligation of withholding tax.

In order to conduct a tax review, it is necessary to analyze the documentation and tax procedures implemented by your enterprise.

u have any questions or would like to learn more about our offer, we highly encourage you to contact us or one of our stationary accounting offices: in Warsaw (Mazovian District) or in Katowice (Silesian District).