Despite the wording of the provision on the condition of ‘being subject to tax’ sounds the same for dividends, interest and royalties, the MoF followed up its ruling on dividends by issuing an general tax ruling on this condition for interest and royalties (DD9.8202.2.2024). What is surprising is therefore its content This ruling also refers…
In recent days, the Ministry of Finance has published two general rulings relating to some of the conditions for the exemption from withholding tax of dividend and interest payments. These rulings are important, but are they groundbreaking? How will the existing practice of the authorities and courts change? In the first part, we are going…
Poland’s minimum income tax[1] may be particularly burdensome for the tobacco industry and international aircraft charter companies. What does this mean for entrepreneurs? The tobacco industry will not pay the minimum income tax For calculating the loss or level of profitability, no account shall be taken of revenue and tax-deductible costs directly or indirectly related…
The definition of ‘real estate company’ and the doubts related to it According to the regulations, a real estate company is an entity, other than a natural person, obliged to prepare a balance sheet on the basis of accounting regulations, in which at least 50% of the balance sheet value of the assets (or, in…
A Polish branch of a foreign company that is a permanent establishment may be part of a group and benefit from a preferential tax rate on income from qualified intellectual property rights. 18 July 2022. The Director of the National Fiscal Information [KIS Director] issued an tax ruling[1] in which wase confirmed that a foreign…
Among others, tax capital groups (hereinafter: PGK) are subject to the minimum tax if: (a) incurred a loss in the tax year from a source of income other than capital gains, or (b) achieved a share of income from a source of income other than capital gains in income from that source of income of…
Family foundation it is something that has not been known to Polish legal system until May 2023. As a family foundation is generally exempt from income tax, this exemption is the one that stirs up the most emotion. For this reason, potential founders or existing foundations seek to confirm the tax consequences in private letters…
Since May 2024 this year, the Director of the National Tax Information has issued several individual tax rulings changing the hitherto relatively uniform line of interpretation of the look-through approach (LTA) in withholding tax. The LTA consists of disregarding the formal recipients of payments or intermediaries, attributing the tax consequences of the payment to the…
The local minimum income tax payable in 2025 will be calculated for the first time on the basis of the tax results achieved in 2024, and although there is still some time left before this deadline, taxpayers are already checking whether they will be subject to tax on the basis of historical data. One of…
The application of R&D relief can be a ‘cure’ for minimum tax. Taxpayers liable to pay minimum income tax can reduce their tax base by the amount of relief applied – including R&D relief. Minimum income tax Minimum income tax is an annual tax, calculated after the end of the relevant tax year. In the…