In the current economic situation, the importance of intragroup financial transactions has been growing. Companies are increasingly borrowing from a related party instead of financing from an external financial institution. This approach is triggered by lower creditworthiness of lenders or less activity of the banks. This approach was confirmed in a report prepared by the…
Ukrainian citizens can set up a sole proprietorship in Poland [one-man business activity] as well as remotely provide services in Poland as part of business activities established in Ukraine. Polish provisions are quite strict when it comes to performing the business activity by non-EU citizens. The issue of personal income tax, social and health insurance…
It is the third time an amendment to the VAT Act in Poland is referred to by the Ministry of Finance as ‘SLIM VAT’. There are many changes introduced by this act, but most of them are rather minor. What is important is the changed rules for the application of VAT sanctions. This amendment was…
On June 19 2023, the European Commission issued a statement signalling legislative work on simplifying and synchronising members states’ laws on pay and refund withholding tax (WHT) procedures. The commission pointed out numerous bureaucratic obstacles and inconsistencies that enterprises encounter and result in significant losses. The Polish WHT system fits well into the commission’s observations.…
The purpose of a family foundation, which is a new structure for Poland, is to accumulate wealth and manage it in the interest of the beneficiaries. As a rule, a foundation is exempt from corporate income tax (CIT) unless it carries on business which is not allowed. In that case, the profit will be subject…
The new tax on shifted profits has been implemented via the Polish CIT Act from January 1 2022. Since this tax is settled on annual basis, the upcoming deadline for the annual CIT return would be also the first date in which taxpayers will face the new challenge. As a rule, the statutory deadline for…
The slowdown in housing investments observed recently, and the influx of refugees caused by the ongoing war in Ukraine have increased an already large hole in the Polish housing market. Among many solutions, the conversion of shopping centres into residential buildings is considered. Demolition of underused or underperforming shopping centres is just one way of…
A European Council derogation decision allowed Poland to introduce a mandatory e-invoicing system starting from January 1 2024 and draft regulation stated this date. However, according to the latest announcements from the Ministry of Finance, it will be postponed to July 1 2024. The latest plans of the Polish Ministry of Finance regarding obligatory e-invoicing…
VAT taxpayers importing goods into the EU can use the simplified import VAT procedure. This is a cashless procedure for paying VAT on imports. Whether you want to import goods into the EU from Ukraine or from another country outside the EU, it is useful to know which option is the most favorable for the…
From January 1 2023 there are new rules on regional investment state aid in the Polish Investment Zone. The Polish Investment Zone provides corporate income tax exemption in return for investment in specific regions. It applies to all types of taxpayers, such as individuals, partnerships, companies and other corporate bodies. The most important change is…