As of January 1, 2025, new regulations entered into force requiring CIT taxpayers to electronically submit accounting books in the Standard Audit File (SAF-T) structure as part of the new JPK_CIT report.
The introduction of mandatory electronic submission of accounting books aims, among other things, to streamline and standardize the reporting of financial and tax data by companies. JPK_CIT will contain detailed information on business transactions, increasing the transparency of taxpayers’ settlements and creating broader opportunities for tax authorities to effectively conduct faster and more accurate analysis and control of companies’ financial data.
The new obligations in the field of electronic reporting of accounting books are particularly significant for Polish entities subject to corporate income tax (CIT). However, foreign entrepreneurs conducting business in Poland through the so-called permanent establishment (PE) for CIT purposes, should also carefully review the criteria to start reporting data under the new structures.
JPK_CIT consists of two structures:
- JPK_KR_PD – data from accounting books supplemented with detailed CIT-related tax information;
- JPK_ST_KR – records of fixed assets and intangible assets.
The new JPK_CIT structures will apply from:
- January 1, 2025 – for CIT taxpayers and partnerships not having legal personality whose revenues for fiscal year 2024 exceeded EUR 50 million, and for tax capital groups;
- January 1, 2026 – for CIT taxpayers and partnerships not having legal personality obliged to submit JPK_V7M files;
- January 1, 2027 – for other CIT taxpayers and partnerships.
It is worth noting that under the Regulation of the Minister of Finance of December 13, 2024, CIT taxpayers and partnerships not having legal personality are exempted from submitting JPK_ST_KR for fiscal years starting after December 31, 2024, and before January 1, 2026.
In practice, this means that the largest CIT taxpayers and tax capital groups whose fiscal year began on January 1, 2025, will be required to submit their first JPK_CIT report in the JPK_KR_PD structure by March 31, 2026 (containing data for 2025).
Permanent Establishment without an established Branch or Representative office
According to Article 9(1c) of the CIT Act, the obligation to keep and submit accounting books electronically applies to taxpayers maintaining accounting books in Poland under the Accounting Act.
While Polish companies will undoubtedly be subject to JPK_CIT reporting obligations, the situation of foreign entrepreneurs operating in Poland through a PE is different. It needs to be remembered that a PE may have a form of established Branch, Representative office, or exist without such formal structures. In accordance to regulations under international double tax avoidance agreements (DTAA), a PE may arise in Poland, for example, through a construction site, building, or installation project lasting (as a rule) more than 12 months (this period depends on the relevant DTAA). In such cases, a PE for CIT purposes in Poland arises for a foreign entity. A permanent establishment is therefore also created when neither a Branch nor a Representative office of a foreign entrepreneur is established within the meaning of the Act on the principles of participation of foreign entrepreneurs and other foreign persons in economic trade on the territory of the Republic of Poland.
A foreign entrepreneur who conducts business activity in Poland through a PE without establishing a Branch or Representative office is not obliged to keep full accounting records within the meaning of the Polish Accounting Act, as confirmed by verdicts issued by the Polish administrative courts. Consequently, the tax authorities indicate that in the absence of an obligation to keep accounting records under the Accounting Act, there is no justification for fulfilling the obligation of electronic reporting of accounts. For such foreign entrepreneurs, there will therefore be no obligation to report accounting books to the tax office in the form of JPK_CIT logical structures.
Such a PE operates under specific tax regulations, according to which it is obliged to record only the data necessary for correctly determining the amount of income earned in Poland and for calculating the tax base. This obligation is fulfilled through the maintenance of simplified tax records, i.e., registers that allow for the calculation of the tax liability but do not constitute accounting books within the meaning of the Accounting Act. Since a PE is not required to keep full accounting books, it is also technically unable to generate files in the JPK_KR_PD structure, and therefore is not obligated to prepare and submit them to the tax authorities (see, inter alia, tax rulings issued by the Director of National Tax Information dated February 21, 2025, No. 0114-KDIP2-2.4010.714.2024.1.PK, dated March 24, 2025, No. 0114-KDIP2-2.4010.40.2025.1.PK, dated July 3, 2025, No. 0111-KDIB2-1.4010.245.2025.1.DD).
Branch of a Foreign Entrepreneur
The situation differs where a foreign entrepreneur operates in Poland through an established Branch registered in the National Court Register (KRS). According to Article 2(1)(7) of the Accounting Act, such branches must keep accounting books in Poland, prepare financial statements, and disclose data in the register.
A key factor determining the start of JPK_CIT reporting obligations for Branches is their revenue. If a branch’s revenue generated in 2024 in Poland exceeded EUR 50 million, then from the beginning of 2025 such Branch must keep accounting books electronically and submit them in JPK_KR_PD structure after the fiscal year ends. Importantly, the value of the revenue of the Polish Branch, not of the foreign parent company should be taken into consideration when assessing whether the EUR 50 million threshold has been exceeded (see tax ruling issued by the Director of National Tax Information dated March 27, 2025, No. 0114-KDIP2-2.4010.43.2025.1.AS). For JPK_KR reporting, the parent company’s NIP (tax ID) number should be used.
It is also worth noting that the reporting obligation for the Branch in Poland arises regardless of whether the parent company is required to submit similar reports in its country of residence.
What should foreign companies operating in Poland pay attention to?
Foreign entrepreneurs conducting business in Poland should carefully analyze the factors affecting the scope of their tax and accounting obligations in Poland:
- Form of activity – whether the entity operates solely as a PE for tax purposes, or as a Branch or Representative office registered in the National Court Register (KRS), since different forms of activity involve different legal and tax requirements.
- Scope of bookkeeping – whether they must keep full accounting books or may use simplified tax records, which directly determines JPK_CIT reporting obligations.
- Revenue threshold – verifying whether the Polish branch’s 2024 revenue exceeded EUR 50 million, as exceeding this limit triggers JPK_CIT reporting already for 2025.
