The estonian CIT, or lump-sum tax on company income, is a form of taxation that allows the postponement of tax payment until the actual distribution of profits to an individual – a shareholder. A key element in the initial phase of applying this taxation model is the calculation of the so-called preliminary adjustment. The essence…
A capital company formed by the conversion of a sole proprietorship is considered as a taxpayer starting a business. On March 11, 2025, the Supreme Administrative Court issued a ruling (referenceII FSK 1412/24) that may significantly impact taxpayers arising from the transformation of sole proprietorships into limited liability companies or joint-stock companies. The ruling confirmed…
The Council of the European Union – in a press release dated March 11, 2025 – announced that a political agreement had been reached on the amendment of the directive on administrative cooperation (under the so-called amending directive, referred to as DAC9). The amendment aims to streamline cooperation between national administrations regarding the exchange of…
Both the provisions of the Corporate Income Tax (CIT) Act and the provisions of various double taxation treaties provide for the obligation to withhold tax on payments made to non-residents for the use of so-called “industrial equipment.” In principle, non-residents earning income in Poland from the use or right to use industrial equipment, including means…
What is the tax on income from buildings? The tax on income from buildings has been in effect in Polish law since January 1, 2018. This tax, commonly referred to as the “minimum tax on buildings,” is a solution designed to ensure effective taxation of entities operating in the real estate sector. Who is subject…
The tax on shifted income was intended to protect the Polish tax base from transfers income to tax havens. Initially, the regulations covered both domestic and cross-border payments, but after one year of being in force, the scope of the tax was limited to payments to non-residents only. This change has effectively become a time…
The list of countries that have obtained “qualified” status for GloBE purposes is now known. The Ministry of Finance published an announcement on February 7, 2025, regarding the list of non-Polish jurisdictions that have implemented a qualified income inclusion rule or a qualified domestic minimum top-up tax or meet the requirements for safe harbors for…
The introduction of the domestic minimum top-up tax into Polish legal system is associated with the entry into force of the Act of 6 November 2024 (GloBE Act) on the top-up taxation for constituent entities of multinational and domestic groups. The GloBE Act introduces a regime for top-up taxation (at a minimum rate of 15%)…
The Act of 6 November 2024 on the top-up taxation of constituent entities of multinational and domestic groups (GloBE Act) introduces a global minimum tax system (at least 15%) at the jurisdiction level. Under the GloBE Act, entities belonging to multinational and domestic groups – with consolidated revenues exceeding €750 million in at least 2…
In 2025, WHT taxpayers will face some changes – among them, we will find new versions of the IFT-2R and CIT-10Z forms, concerning the foreign income of taxpayers earned from January 1, 2024. Comparing the new structure of the forms with the previous version will certainly make it easier to complete them, especially since many…