Announcements of the Ministry of Finance - “sealing” of the CIT and PIT systems

The Ministry of Finance (MF) announces to publish in Q3 2020 amendments to the income tax acts, including, e.g.:

• granting a limited partnership [spółka komandytowa] the status of an income tax payer; after the amendment, the income tax will be paid by the limited partnership. The announcement suggests that the distribution of profit – from the company to the partners of the limited partnership – will also be subject to taxation. Similar rules may also apply to certain general partnerships [spółka jawna] – when income tax payers participating in the profits of the general partnership are not disclosed;
• limiting the possibility of deducting past tax losses in case the taxpayer has conducted reorganization (mergers, in-kind contributions);
• introducing changes in the calculation of the maximum amount of debt financing costs which may be tax deductible;
• introducing taxation of transferring of tangible assets in the event of company liquidation;
• increasing the limit of revenues from the given fiscal year from EUR 1.2 million to EUR 2 million giving an entitlement to the reduced 9% CIT rate.
• limiting the possibility of lowering depreciation rates where a taxpayer takes advantage of the tax exemption;
• approximating the principles of tax depreciation and accounting depreciation;
• transferring the tax settlement obligation arising from the sale of shares in the so-called real estate companies from the seller to the real estate company;
• extending the scope of transactions subject to verification in terms of their compliance with the arm’s length principle when the beneficial owner is registered in the so-called “tax haven”.
• introducing the annual obligation for CIT payers to draw up and publish their tax policy;
• introducing further exemption from tax of income from buildings also in the event that the state of the epidemic related to SARS-CoV-21 virus was still effective in Poland after 31 December 2020.
• introducing analogous changes in PIT, and additionally eliminating the so-called abolition relief which is of significance for Poles working abroad.

The content of the regulations has not yet been published. Should you have any questions, please contact MDDP experts.