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…
As a rule, the tax year for minimum tax is the calendar year. The legislation also allows taxpayers to amend this period depending on the decision expressed, inter alia, in the company’s articles of association. However, even in this situation, the tax year generally comprises twelve consecutive calendar months. In certain circumstances, this period may…
In a tax ruling dated 16 September 2024, ref. 0111-KDIB1-2.4010.340.2024.1.BD, it has been ruled that the income of a family foundation from the sale of cryptocurrencies is not exempt from corporate income tax but is taxed at a corporate income tax rate of 25%. Story A family foundation wanted to invest its assets in cryptocurrencies.The…
On 5 October, the Act of 1 October 2024 amending the Act on special solutions related to flood recovery and certain other acts [Amendment Act] entered into force. Donations for flood relief with no impact on minimum income tax Newly introduced article 1(25) of the Amendment Act provides that for the purposes of calculating the…
On Monday 7 October 2024, a draft law amending the Agricultural Tax Act, the Local Taxes and Fees Act and the Stamp Duty Act was submitted to the Council of Ministers for deliberation. It is a proposal for new legislation on several tax laws, developed during extensive public consultations, but which will most profoundly affect…
The Administrative Court in Gliwice ruled in a judgment of 24 June 2024 (ref. I SA/Gl 1679/23) that the performance of remote work by an employee of a foreign company in Poland does not create a permanent establishment of a foreign company in Poland. The judgement is not final. Background A German company was set…
From 2022, CIT (and PIT) taxpayers can benefit from the sales boost tax relief, which entitles to deduct expenses incurred on specific activities aimed at increasing sales of self-made products. It is possible to deduct 200% of the costs – but not more than PLN 1 million in a single tax year – as long…
Admittedly, this is only to apply to property tax returns and will require taxpayers to submit a declaration to the tax authorities, but it is worth appreciating the opportunity provided by the latest draft amendment to the Local Taxes and Fees Act. Why such an opportunity? The circumstance is related to the new definitions of…