Shifted profits – what to do before it's too late

The taxman has been getting increasingly more interested in tax on shifted profits over the past few years. Even though the tax has been in place for several years now, its practical aspects continue to cause many doubts. In 2025, the Ministry of Finance issued special explanatory notes concerning the tax on shifted profits.

What are shifted profits?

It is a mechanism added to the CIT Act to counteract transfers of profits to associated enterprises established in low-taxation countries. Importantly, the tax may be levied also on payments between entities from the EU/EEA if they do not pursue a genuine business activity. 

If your company purchases from its foreign associated enterprises:

• intangible services,
• licences, copyrights,
• know-how,
  

or incurs the costs of:

• fees for the transfer of the risk of debtor's insolvency,
• debt financing,
  
• charges and fees for the transfer of functions, assets or risks,

​- you must check whether you are subject to tax on shifted profits.

The basic rate of tax on shifted profits is 19%.

Deadlines to keep

The tax has to be disclosed in the annual CIT-8 return. This means that most taxpayers whose tax year lines up with the calendar year must file the 2025 tax return by the end of March 2026.

You should check your tax obligation before the year-end closing and preparation of the CIT-8 return. Otherwise, you may risk facing tax arrears, interest and fiscal crime liability.

Why does it matter?

Revenue authorities are looking more and more carefully into intra-group transactions. The tax on shifted profits exists alongside minimum income tax, global minimum tax and transfer pricing regulations creating an additional layer of tax risk.

If you wonder if tax on shifted profits applies to your organisation, contact us​. Our experts will analyse your company's situation to see if you need to pay that tax.

We will describe the conditions that must be met to avoid or reduce tax on shifted profits, as well as prepare internal procedures to help fulfil the obligation to correctly calculate the tax.​

Author: Maria Wośkowiak-Adamczyk

25 February 2026