Many entrepreneurs in Poland would like to have lower tax liabilities. It’s worth taking a closer look at the opportunities introduced by the legislator.One such mechanism that can help reduce CIT tax is hypothetical interest on equity capital. What is hypothetical interest? Hypothetical interest is the amount a company would potentially pay as interest if…
The draft amendment to the Tax Ordinance Act and certain other acts runs to 52 pages, and more than half of its contents are changes to the Mandatory Disclosure Rules (MDR) provisions. The proposed changes to the MDR provisions are comprehensive and, in some aspects, revolutionary. Several of the proposed changes are structural in nature…
The estonian CIT, or lump-sum tax on company income, is a form of taxation that allows the postponement of tax payment until the actual distribution of profits to an individual – a shareholder. A key element in the initial phase of applying this taxation model is the calculation of the so-called preliminary adjustment. The essence…
A capital company formed by the conversion of a sole proprietorship is considered as a taxpayer starting a business. On March 11, 2025, the Supreme Administrative Court issued a ruling (referenceII FSK 1412/24) that may significantly impact taxpayers arising from the transformation of sole proprietorships into limited liability companies or joint-stock companies. The ruling confirmed…
The Council of the European Union – in a press release dated March 11, 2025 – announced that a political agreement had been reached on the amendment of the directive on administrative cooperation (under the so-called amending directive, referred to as DAC9). The amendment aims to streamline cooperation between national administrations regarding the exchange of…
Both the provisions of the Corporate Income Tax (CIT) Act and the provisions of various double taxation treaties provide for the obligation to withhold tax on payments made to non-residents for the use of so-called “industrial equipment.” In principle, non-residents earning income in Poland from the use or right to use industrial equipment, including means…
What is the tax on income from buildings? The tax on income from buildings has been in effect in Polish law since January 1, 2018. This tax, commonly referred to as the “minimum tax on buildings,” is a solution designed to ensure effective taxation of entities operating in the real estate sector. Who is subject…
From the beginning of 2022, a provision limiting the amount of depreciation allowances made by real estate companies was introduced into the CIT Act. It allows depreciation write-offs on buildings and premises (group 1 of the NIT) to be recognised as tax deductible costs, but only up to the amount of balance sheet write-offs. Depreciation…
The tax on shifted income was intended to protect the Polish tax base from transfers income to tax havens. Initially, the regulations covered both domestic and cross-border payments, but after one year of being in force, the scope of the tax was limited to payments to non-residents only. This change has effectively become a time…
The list of countries that have obtained “qualified” status for GloBE purposes is now known. The Ministry of Finance published an announcement on February 7, 2025, regarding the list of non-Polish jurisdictions that have implemented a qualified income inclusion rule or a qualified domestic minimum top-up tax or meet the requirements for safe harbors for…