Many taxpayers living and working abroad ask themselves: does the mere fact that my family resides in Poland mean that I am still considered a Polish tax resident? The answer is not straightforward. The mere fact that a spouse or children live in Poland does not determine that the taxpayer’s centre of personal interests is…
Does a gratuitous guarantee granted to a taxpayer subject to Estonian CIT by a related entity give rise to a transfer pricing documentation obligation? According to DKIS [1] – yes – if the value of the guarantee exceeds the threshold of PLN 10 million, the taxpayer will be required to prepare transfer pricing documentation. …
The arm’s length principle applies to all entities conducting transactions with related parties and to all transactions – regardless their value. Even if a transaction does not exceed the documentation thresholds and does not trigger the obligation to prepare local transfer pricing documentation, it is not exempt from complying with the arm’s length principle. Transfer…
Family foundations have been part of the Polish legal system for over two years and have naturally become a popular tool for succession planning. As they gain traction, questions have arisen regarding the permissibility of accumulating and disposing of digital assets by family foundations, especially in light of their tax-advantaged status. In its tax ruling…
Does a free of charge surety granted to a taxpayer subject to Estonian CIT give rise to a tax obligation to recognise income as hidden profits or revenue from free of charge benefits? The conclusions of the latest individual tax ruling[1] indicate that it does not. Hidden profit or income from a free of…
Recent discussions have focused on the EU institutions’ evolving stance on ESG (Environmental, Social and Governance) reporting. A central element of these changes is the so-called Omnibus Package, which introduces substantial amendments to both existing and forthcoming regulations—particularly the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy-related implementing measures. A new direction from the…
The issue of intra-group transactions in the context of value-added tax (VAT) is increasingly attracting the attention of the Court of Justice of the European Union (CJEU). Recent cases underscore the importance of delineating the boundaries between direct tax (CIT) and indirect tax (VAT) regulations, as well as the significant practical implications that transfer pricing…
Can the payment of remuneration for the redemption of shares, financed from profits earned before the implementation of Estonian CIT, result in lump-sum taxation of company income? Although it may appear that profits once subject to taxation should not be subject to further taxation, tax authorities’ practices demonstrate otherwise. For the tax authority, it…
Cryptocurrencies are becoming an increasingly common means of settlement, including in financial transactions – such as lending or collateral. It is worth taking a look at what tax implications are associated with the use of cryptocurrencies in such situations. Lending in traditional currencies and taxation of PCC and VAT In accordance with a line of…
Recently issued individual interpretations indicate that tax authorities have inconsistent positions on the classification of lease or rental costs from related entities as so-called hidden profits. While the regulations remain consistent, the authorities’ positions are subject to variation depending on the specifics of each case. The following three approaches demonstrate the various perspectives of the…