Substance related to assets and personnel as a key element of actual economic activity in light of the 2025 Withholding Tax Explanations

Substance related to assets and personnel as a key element of actual economic activity in light of the 2025 Withholding Tax Explanations

Corporate tax, Trochę o CIT

Asset and personnel substance is one of the most important elements in determining the status of the beneficial owner [hereinafter: ‘BO’] for the purposes of withholding tax [hereinafter: ‘WHT’]. The tax explanations published on 3 July 2025 by the Polish Ministry of Finance concerning the application of the so-called beneficial owner clause for withholding tax…

Economic power in light of the WHT Explanations – is this the end of uncertainty?

Economic power in light of the WHT Explanations – is this the end of uncertainty?

Corporate tax, Trochę o CIT

On 9 July 2025, the Minister of Finance published the long-awaited tax explanatory notes regarding so-called beneficial owner clause for withholding tax purposes (hereinafter: WHT Explanatory Notes). Their publication is of significant importance for withholding tax remitters and taxpayers who, since 2022, have been and continue to be particularly exposed to increased controls and proceedings…

The Supreme Administrative Court's ruling of 15 May 2025 (ref. II FSK 163/25) provides clarity on one of the challenging and ambiguous issues concerning Estonian CIT

The NSA has adopted a more flexible approach to the Estonian CIT, reducing the requirement for rigid formalities to 300 days of employment

Corporate tax, Trochę o CIT

The Supreme Administrative Court’s ruling of 15 May 2025 (ref. II FSK 163/25) provides clarity on one of the challenging and ambiguous issues concerning Estonian CIT. This refers to the condition of maintaining an appropriate level of employment for a minimum of 300 days in a tax year, as outlined in Article 28j(1)(3)(a) of the…

Polish Holding Company

Polish Holding Company – important ruling of the Supreme Administrative Court on the residence of shareholders

Corporate tax, Trochę o CIT

The introduction of a tax exemption known as the Polish Holding Company (PHC) into the Corporate Income Tax Act was intended to increase Poland’s attractiveness as a location for investment structures and to create a competitive tax environment. It is difficult not to notice that on the tax map of Europe alone, Poland has long…