The head of the National Tax Information Office in Poland ruled that an increase in share capital does not generate income for Corporate Income Tax (CIT).
In a recent individual interpretation dated November 21, 2025, the director of the National Tax Information Office (Krajowa Informacja Skarbowa) concluded that an increase in share capital does not constitute income subject to Corporate Income Tax (CIT). This interpretation is significant for businesses involved in public service activities and those that rely on capital increases as part of their financial structure.
The case involved a single-member limited liability company (spΓ³Εka z o.o.) wholly owned by a municipal government. The company undertakes tasks related to waste management, including the operation of landfills, waste processing, and the construction of processing facilities. The company receives funding through a compensation mechanism established through a delegation agreement with the municipality, which allows it to perform economic interests on behalf of the local government.
The compensation mechanism mentioned includes both ongoing subsidies and capital injections through increases in share capital. This ruling provides clarity on the tax obligations concerning the financing of public services and could have implications for similar entities in Poland regarding how they structure their financing and prepare for tax liabilities in relation to corporate income tax.
