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Capital gains taxed CIT separately

The draft of changes to Polish CIT Act published in July 2017 provides for many revolutionary amendments, including a separate taxation of capital gains – new source of income. The key assumptions are:


1.    CIT taxpayers will have to calculate and tax capital gain separately from other (operating) profit.

2.    The profit from both sources will be aggregated and taxed together, however if there is a loss from any source, no aggregation will be possible. Tax loss from one source can be carried forward for five following tax years but only against profit from the same source (up to 50% of tax loss in one tax year).

3.    Capital gains are considered as:

i.      dividends;

ii.     other income obtained from a share in profits of legal persons (also limited partnerships), including income from mergers and demergers;

iii.    other income from shares;

iv.   income from contributions-in-kind made to legal persons (also limited partnerships);

v.    income from disposal of receivables, including those declared earlier as taxable operating  income;

vi.   income from securities and derivatives;

vii.  income from participation in investment funds.

4.    Taxation of profit from dividend like income subject to 19% tax flat rate CIT on income (not profit), will not change.


According to the draft, for taxpayers having a tax year as a calendar year, amendments will come into force from 1st January 2018.




Should you be interested in obtaining further information, or would like to discuss the impact of the above changes please contact:


Monika Dziedzic      tel. + 48 22 322 68 88


or your advisor at MDDP.

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