Minimum corporate income tax: who it applies to

The minimum corporate income tax is a mechanism that ensures a company pays at least a certain amount of tax even when it reports a very low tax liability or even a loss. In this article we look at who the minimum corporate income tax applies to, how it is calculated and why you need to plan for it in advance. For many companies it comes as an unpleasant surprise precisely in a year when business did not go well. If you understand how it works, however, you can plan your tax liability without unnecessary stress.

What the minimum tax is

It is the lowest amount of tax that a legal entity is required to pay for a tax period if its tax calculated in the standard way does not reach this threshold. Historically, this mechanism has also been known as the tax licence. Its aim is to ensure that even companies reporting low profits contribute at least a minimum amount to the state budget.

Who the minimum tax applies to

In general, the minimum tax applies to legal entities that carried out business activities during the tax period. At the same time, the law sets out several exemptions for certain situations and specific entities that do not have to pay it.

• Ordinary commercial companies that are actively trading
• Companies reporting a loss or a low tax liability
• Exemptions, for example for newly established or special entities

What determines the amount

The amount of the minimum tax is generally tiered according to the revenue achieved, i.e. the company’s turnover. As a rule, higher sales mean a higher minimum tax. Always check the specific bands and amounts for the tax period concerned, as they may change depending on current legislation. Because it is tiered by revenue, larger companies bear a higher minimum tax, while smaller entities pay less. This arrangement is intended to reflect the different size and economic strength of individual companies.

How it relates to the regular tax

If the tax calculated in the standard way is lower than the minimum tax, the company pays the difference so that in total it pays at least the amount of the minimum tax. Conversely, if the regular calculated tax is higher, the minimum tax does not apply at all and the company pays its standard tax liability.

Option to offset it in the future

Under certain conditions, the positive difference between the minimum tax paid and the lower tax actually calculated can be offset against a higher tax in subsequent tax periods. Check the exact rules and time limits for this offset under the current legislation so that you do not lose the option.

• Monitor whether your tax falls below the minimum threshold
• Keep a record of differences that can be offset in the future
• Check the current revenue bands

Why you should think about it in advance

Even a company that is making a loss must factor the minimum tax into its cash flow. Take it into account when planning your budget and, if anything is unclear, consult an accountant so that this obligation does not take you by surprise at the end of the year when you file your tax return. When deciding whether to keep a company active or, for example, to wind it up, the minimum tax may be one of the deciding factors. That is why it is worth understanding how it works before you set up or take over a company.

Current figures (2026)

Minimum tax for legal entities (tax licence) 2026

Corporate income tax 2026

Figures valid for 2026; check the current wording.

Related articles: How to take money out of an s.r.o. with as little tax as possible, Advance income tax payments: when and how much to pay, Taxation of dividends: rates, procedure and common misconceptions.

Frequently asked questions

Does a company that is making a loss also have to pay the minimum tax?

In general, yes. That is precisely why the minimum tax exists: so that a company pays at least a certain amount even when it makes a loss. There are, however, exemptions, which you should check for your own situation.

Can the minimum tax paid ever be refunded or offset?

Under the stipulated conditions, the difference between the minimum tax and a lower calculated tax can be offset in subsequent periods. Check the rules under the current legislation.