How does the SME directive change settlements with contractors? The Act implementing the so-called SME Directive has been signed by the President of Poland and published in the Journal of Laws. Currently, a secondary regulation and amendments to the VAT-R form are under consideration. The Directive 2020/285 introduces changes that primarily benefit small and medium-sized…
Cash pooling is a widely used solution among capital groups. It streamlines the management of funds across multiple entities and enhances liquidity control. This approach leads to cost savings and more efficient financial management within the group. Cash pool arrangement – what is it? Cash pooling is a liquidity management system designed for companies within…
With the growing popularity of international expansion, more and more Polish entrepreneurs are deciding to establish companies outside of the country. Such decisions pose a range of tax-related questions for taxpayers. One of the key issues is whether income earned from the activities of foreign entities is subject to taxation in Poland. What regulations apply…
An important for the property development sector and interesting from the VAT point of view ruling was issued by the CJEU on November 7th, 2024. The case C-594/23 (Lomoco Development ApS and others) was between the Danish Ministry of Taxation and several property development companies. These companies sought to demonstrate the VAT exemption for the…
The Ministry apparently decided to dose up the excitement about the KSeF project and a week after the publication of the assumptions of the draft law amending the law introducing the compulsory KSeF in the list of legislative works of the Council of Ministers, a draft law with an explanatory memorandum was published on the…
A Polish branch of a foreign company that is a permanent establishment may be part of a group and benefit from a preferential tax rate on income from qualified intellectual property rights. 18 July 2022. The Director of the National Fiscal Information [KIS Director] issued an tax ruling[1] in which wase confirmed that a foreign…
As the year draws to a close, companies are preparing their final accounts for 2024. Now is the last opportunity to carefully review and make any necessary adjustments to settlements, pricing, or contract terms. The adjustments themselves continue to raise numerous interpretative questions, not only about their definition but also regarding the conditions for their…
Family foundation it is something that has not been known to Polish legal system until May 2023. As a family foundation is generally exempt from income tax, this exemption is the one that stirs up the most emotion. For this reason, potential founders or existing foundations seek to confirm the tax consequences in private letters…
On Monday 21 October 2024, the Supreme Administrative Court [hereinafter: NSA] adopted a resolution by a panel of seven judges (ref. III FPS 1/24) concerning the right of the Head of the National Tax Administration [hereinafter: KAS] to impose penalties on banks and other institutions obliged to submit reports within the STIR system. The NSA…
Since May 2024 this year, the Director of the National Tax Information has issued several individual tax rulings changing the hitherto relatively uniform line of interpretation of the look-through approach (LTA) in withholding tax. The LTA consists of disregarding the formal recipients of payments or intermediaries, attributing the tax consequences of the payment to the…