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Analysis of Determinants of Corporate Income Tax Revenues in Poland
Abstract
Theoretical background: The literature highlights the dynamic nature of corporate income tax (CIT), which undergoes frequent changes. Recent trends include efforts to minimize its adverse economic effects through policies expanding the tax base while lowering tax rates. Additionally, growing international tax competition has prompted countries to introduce tax preferences, affecting the tax base and effective tax rate. This raises the question of how these trends influence CIT revenues in Poland. Answering this requires identifying the key determinants of CIT revenues.
Purpose of the article: This study aims to determine the factors influencing changes in CIT revenues in Poland. Two research questions are posed: 1) which factors have the most significant impact on changes in CIT revenues? 2) what role do large taxpayers (revenues > EUR 50 million) play in CIT revenues?
Research methods: The study considers factors such as the number of taxpayers, their average revenues, profitability, the relationship between the taxable base and income, and the effective CIT rate. The analysis covers the 2009–2022 period using data from the Polish Ministry of Finance. The logarithmic method was employed to evaluate the impact of individual factors on CIT revenue changes.
Main findings: Results indicate that the number of taxpayers is the primary driver of CIT revenue changes, consistently contributing to revenue growth. The second most important factor is firm size, measured by average revenue levels, although this factor shows greater variability. Profitability levels also positively influence CIT revenues. Significant differences in these factors were observed based on taxpayer size.
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DOI: http://dx.doi.org/10.17951/h.2025.59.1.7-19
Date of publication: 2025-05-20 12:19:09
Date of submission: 2024-12-31 09:27:02
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