“Estonian” CIT – reasons for choosing and the effects of taxation in the opinion of representatives of selected enterprises in Poland

Purpose: In light of sparse empirical research, this study aims to identify the factors that made selected enterprises switch to E-CIT (Estonian form of Corporate Income Tax) and to present opinions on the potential effects of choosing this form of taxation. Methodology/approach: The article examines the following research hypotheses: (1) Estonian CIT is a tool for tax optimization, (2) there is excess liquidity in enterprises taxed with the Estonian CIT, and (3) the funds saved by switching to the Estonian CIT will not be allocated for investments. Findings: The most common reason, as well as the achieved effect of the respondents' choice of taxation in the form of E-CIT, is tax optimization. An effect in the form of an increase in financial liquidity can also be observed in most of the enterprises surveyed, which in only a few cases contributes to excess liquidity. A significant number of respondents intend to allocate the money saved by switching to E-CIT for investment. Research limitations/implications: The questionnaire was completed by only 30 respondents. Survey conclusions are sometimes subject to the subjectivity of the answers given. Originality/value: A form of corporate taxation that may increase the value of cash held and subsequently stimulate decisions to involve capital in economic processes is the taxation of distributed profits, a relatively new topic in Poland. The study provides new knowledge on the causes and possible effects of Polish corporate taxpayers choosing the E-CIT regime.