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…
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…