New rules surrounding the Polish Investment Zone 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…
Enhanced tax exemptions for holding companies in Poland With 2023 comes numerous changes to improve the availability and operation of the Polish holding company model. It is worth remembering that the capital gains tax exemption for holding companies was introduced into Polish tax law under the so-called Polish holding model as of January 1, 2022.…
Green taxes in the fight against climate change There is a perception that the only meaningful achievement of this year’s COP27 summit is the agreement to set up a ‘loss and damage’ fund to cover the losses of developing countries caused by climate change-related disasters. Beyond this, no agreements were made that would take the…
9 key Polish corporate income tax changes for 2023 In January 2023, an amendment to the Polish Corporate Income Tax Act will come into force. Pro-fiscal changes as well as solutions that are favourable for taxpayers will be introduced, making certain tax instruments more challenging and some more attractive. #MORE on the topic of report…
Poland: Last call for taxpayers in Poland to review ATAD 2 Poland has implemented European Council Anti-Tax Avoidance Directive (ATAD 2) by introducing anti-hybrid provisions into its domestic law. The provisions apply starting from January 2021 and the taxpayers should take them into account in their 2021 CIT settlements and onwards. The deadline for the…
Keep your arm’s-length distance – how to meet Polish TP obligations Multinational companies that are familiar with transfer pricing (TP) issues in their countries might raise their eyebrows over the kinds of transactions that are subject to the arm’s-length rule in Poland. Usually, TP regulations apply to service, goods, and financial transactions made between related…
Tax changes related to employment in Poland from the payer’s perspective New regulations that have significantly changed the Polish tax system for the second time in 2022 came into force on July 1. The tax amendment, the so-called Polish Deal 2.0, modifies the personal income tax (PIT) regulations introduced on January 1 2022.#MORE on the…
The absurdity of Polish TP obligations covering transactions with third parties Participating in public consultations pays off! Eighteen months after the regulations came into force, the Ministry of Finance repealed the provisions on indirect tax haven transactions. Importantly, the obligations have also been cancelled for 2021. However, it should be remembered that transactions carried out…
Entrepreneurs benefiting from low lump-sum taxation in Poland The Personal Income Tax Act defines business activity (BA) as a gainful activity conducted on one’s own behalf, irrespective of results, in an organised and continuous manner, from which the revenues are not attributed to other revenues from other sources, such as an employment relationship, managerial contracts,…
Poland gets green light for mandatory e-invoicing from 2024 The derogation is granted for three years, until December 31 2026. It may be extended further, but Poland will still need to prove that this tool led to reducing VAT fraud and abus as well as simplifying VAT settlement for taxpayers.#MORE on the topic of hybrid…