Updated commentary on Article 5 of the Law on Corporate Income Tax
The State Tax Inspectorate has published an updated commentary on Article 5 of the Corporate Income Tax Law (CIT), which sets out the procedure for applying corporate income tax rates from 2026-01-01.
Main changes:
New tariffs from 2026
- Instead of 6% and 16%, rates of 7% and 17% will apply.
- these rates will apply to corporation tax for 2026 and beyond.
Small business allowances
- The preferential rate of 0% will be available for the first two tax periods for newly established companies.
- This benefit will be available not only for companies established in 2026 but also for companies established in 2025, provided that their income in 2026 does not exceed €300,000 and that the other requirements of the ITA are met.
- From 2026, the average number of employees will no longer be taken into account for the purposes of the reduced rates – only the company’s revenue will be the decisive indicator.
The preferential rate of 7% will apply from 1 January 2026:
- small businesses with a turnover of less than €300 000,
- cooperatives deriving more than 50% of their income from agricultural activities,
- income from the use or sale of R&D assets.
What is important for companies to know?
Income will be calculated jointly if the same owner or shareholders own several companies.
