Eligible costs under the research and development (R&D) tax relief include, among others, expenses incurred on the remuneration of employees performing R&D activities. These expenses may be deducted to the extent that the time devoted to R&D activities remains in proportion to the employee’s total working time in a given month. Moreover, the concept of…
On December 1, 2025, the Minister of Finance and Economy issued a general interpretation[1] regarding real estate tax, which concerns the understanding of the concept of land, buildings, and structures related to business activity. The meaning of this phrase is decisive in determining which tax rate to apply. It is important to be aware that…
How does the Master File impact withholding tax (WHT) in Poland? Review the key risks, obligations, and actions that a Polish company within an international group should consider.
Change of taxation form to Estonian CIT A company may opt for Estonian CIT taxation during the tax year, provided that it closes its accounting books and prepares financial statements in accordance with the Accounting Act on the last day of the month preceding the first month of lump-sum taxation. In practice, the tax authorities…
The departure of the Estonian CIT has led to a number of concerns being raised among entrepreneurs. Following the termination of the lump-sum tax on corporate income, what is the subsequent course of action for the tax? When does the tax obligation arise and how can costly mistakes be avoided? The answers are provided by…
WHT explanations – have holding companies gained understanding in withholding tax? What is the opinion of MDDP experts?
Estonian CIT conditions One of the conditions of Estonian CIT is the appropriate structure of the company’s revenues. Passive income may not exceed 50% of total income. Passive income includes, in particular, income from receivables, interest, sureties, guarantees, copyrights, industrial property rights, as well as the sale and exercise of rights arising from financial instruments.…
The draft amendment to the income tax laws of September 16, 2025, provides for changes in the regulations concerning the lump sum tax on company income. The recent amendment to the definition of “hidden profits” has generated significant controversy, as it effectively determines which benefits between a company and its shareholders are subject to additional…
The CIT Act and the PIT Act contain a list of intangible services, the income from which, as a rule, is subject to a 20% flat-rate income tax (withholding tax / WHT). These services include: consulting, accounting, market research, legal, advertising, management and control, data processing, employee recruitment and personnel acquisition, guarantees and sureties, and…
Entities that pay dividends to their parent companies have been struggling for years with documentation challenges when attempting to confirm their right to apply for withholding tax exemption. In Explanations concerning the beneficial owner clause published on July 3, the Minister of Finance proposed a solution that can be described as a “safe harbour.” It…