Minimum CIT in the Steel and Energy Sectors. Who May Be Exempt and From Which Year?

In the energy, heating and steel sectors, the Polish minimum CIT may become relevant in years of lower profitability. A government draft amendment to the income tax legislation may exempt certain taxpayers from the minimum CIT regime, but the proposed application date differs depending on the type of activity.

The draft introduces new exemptions from minimum CIT

The government proposal, submitted as Parliamentary Paper No. 3137, provides for an exemption from minimum CIT for taxpayers deriving the majority of their revenue from the sale of electricity, heat or pipeline gas, or from coking coal processing and steel production.

On 6 October 2026, the draft passed its first reading and was referred to the Public Finance Committee. It therefore remains proposed legislation rather than law currently in force.

The steel and coke sectors may benefit earlier than the energy sector

The proposed application dates are particularly important.

For coking and steel businesses, the new provisions are intended to enter into force on the date of publication and apply to tax years beginning after 31 December 2025.

For companies whose tax year corresponds to the calendar year, this would mean that the exemption could apply as early as 2026.

The energy sector is treated differently. Its exemption is intended to apply only to tax years beginning after 31 December 2026, meaning from 2027 for calendar-year taxpayers.

Requests to extend the exemption to the energy sector from 2026 and to companies still in the investment preparation phase have not been reflected in the draft.

Revenue classification may be the key issue

In practice, the most difficult questions may concern not the dates themselves, but the classification of revenue for the purpose of determining eligibility for the exemption.

The draft does not define “coking coal processing” or “steel production”. In addition, the operative provision links the two concepts using “and”, while the explanatory memorandum uses “or”.

This may create interpretative uncertainty, particularly for businesses with mixed activities, such as further processing of steel products, trading activities or other revenue streams.

For the energy sector, the exemption is linked specifically to the sale of electricity, heat or pipeline gas, meaning that revenue from other services or ancillary activities may require separate assessment.

Some previously proposed restrictive changes have been removed

The current version of the draft no longer includes certain earlier proposals that would have tightened the minimum CIT rules.

This includes, among other things, a proposed modification of the exemption for taxpayers achieving profitability of at least 2% in one of the previous three years.

The final scope of the amendment will nevertheless depend on the further legislative process.

Companies should prepare calculations under two scenarios

Steel and coking companies should already review their 2026 revenue structure and prepare minimum CIT calculations under two scenarios – assuming the proposed exemption applies and under the rules currently in force.

This is particularly important because neither the final wording of the legislation nor the date of its publication has yet been determined.

Energy groups should generally plan 2026 under the existing rules and assess potential eligibility for the exemption from 2027 separately for each company, taking into account its individual revenue structure.

The key conclusion is straightforward: the proposal may exempt certain businesses in the steel, coking and energy sectors from minimum CIT, but the exemption would apply from different dates and eligibility will largely depend on the company’s revenue structure.

Should your organisation require assistance in determining eligibility for the proposed minimum CIT exemption or in preparing tax calculations for 2026 and 2027, please do not hesitate to contact us.

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