Pursuant to the draft submitted to the Sejm on 30 September 2020, as of 1 January 2021 all limited partnerships, regardless of their specific features, will be subject to the CIT tax. The said tax will also apply to certain general partnerships, provided that they have their seat or management board in the territory of the Republic of Poland and they jointly fulfil the following conditions:

1. not only natural persons are partners of the general partnership,
2. before the commencement of a financial year, the general partnership will not submit the information concerning taxpayers of the personal income tax and corporate income tax having, directly or through entities which are not taxpayers of the income tax, rights to participate in the profit of the company or will not update information within 14 days from the day a change occurs.

Moreover, a general partner of the limited partnership will be subject to taxation with a fixed, flat-rate income tax of 19%. At the same time, following the model of a limited joint-stock partnership, the general partner will be entitled to decrease tax on dividend by the CIT tax paid by the limited partnership. This deduction will be proportional to participation in the profit of the company. If the limited partnership has a status of a small business taxpayer, it will pay the CIT tax of 9% and the general partner will pay 10% extra when paying out the profit. The taxation will amount to 19% in total. If the company pays the basic CIT rate of 19%, the general partner will not pay extra tax. Thus, general partner’s income in limited partnerships will not be subject to double taxation.

Limited partners’ profit, similarly to that of general partners’, will also be subject to taxation with a flat-rate income tax of 19%. However, limited partners will not be able to decrease their tax by the CIT tax paid by the company. Thus, limited partners will be subject to common double taxation. 50% of limited partner’s revenues from the limited partnership will not be subject to double taxation, but only up to PLN 60,000.00 per year. Limited partners who i.a. are, at the same time, shareholders or general partner’s management board members may not benefit from the said relief.