From 1st of January 2026, relief for starting small business activities will come into effect. The period during which newly registered companies (UAB, MB, etc.) will be subject to a 0% corporate income tax rate on earned profit is extended. This period is extended from 1 to 2 years.
From 2026, small companies (UAB, MB, etc.) will be able to exempt their profits from corporate income tax for the first two years of operation (until the changes, this was only applied to the first year of operation) if:
the annual operating income of the company (UAB, MB, etc.) does not exceed 300,000 euros;
the owners of the company are only natural persons;
during the first 3 years of operation, the company’s shares are not transferred, the company’s activities are not suspended, and the company’s liquidation or reorganization is not initiated.
From 2026 for small companies (UAB, MB, etc.) seeking to apply a preferential corporate income tax rate, there is no longer a restriction on the number of employees, i.e. the preferential corporate income tax rate will be applicable regardless of the annual average number of employees (the limitation of 10 employees applies until the amendments come into force). The decisive indicator is the income of the company (UAB, MB, etc.). Income will be calculated jointly if the same owner or shareholders manage several companies (UAB, MB, etc.).