PIT while doing business in Poland Ukrainian citizens can set up a sole proprietorship in Poland [one-man business activity] as well as remotely provide services in Poland as part of business activities established in Ukraine. Polish provisions are quite strict when it comes to performing...

Tomasz Michalik and Marek Przybylski of MDDP review important changes to the Polish VAT Act and preview upcoming revolutionary e-invoicing implementation. It is the third time an amendment to the VAT Act in Poland is referred to by the Ministry of Finance as ‘SLIM VAT’. There are...

It is the third time an amendment to the VAT Act in Poland is referred to by the Ministry of Finance as ‘SLIM VAT’. There are many changes introduced by this act, but most of them are rather minor. What is important is the changed rules for the application of VAT sanctions. This amendment...

One of the key matters for preparing a benchmarking analysis is the comparability of underlying data. What if the data are not perfectly comparable? If that is the case, it may be necessary to apply comparability adjustments When comparability adjustment is a good thing? The comparability...

The provision of toll manufacturing services to a taxable person from another country does not necessarily create a fixed establishment of the recipient in the Member State of the supplier, the CJEU ruled in the judgment of 29 June 2023 in case C-232/22, Cabot Plastics Belgium. This...

Poland watching closely as European Commission initiatives on withholding tax aim at simplification On June 19 2023, the European Commission issued a statement signalling legislative work on simplifying and synchronising members states’ laws on pay and refund withholding tax (WHT)...

Not long ago, the global financial market was heavily discussing the topic of LIBOR index being replaced with a new interest rate. In Poland, the process of replacing the reference rate is underway and is scheduled to be completed in late 2024/early 2025. Our local change and the...

Inheritance and donation tax – new tax free limits as of July 1, 2023 As of July 1, 2023, the inheritance and donations tax-free amounts [idt][1] for each tax group will increase. At the same time, the controversial “charitable collections tax”, which was also due to apply from...

Jacek Wojtach of MDDP Poland explains the Polish withholding tax rules and refund procedures, and the issues that could be addressed as the European Commission declares its intention to make legislative changes. On June 19 2023, the European Commission issued a statement signalling...

Repeal of the state of epidemic emergency – tax implications On 1 July 2023, the state of epidemic emergency will be repealed in Poland. This follows from the Regulation of the Minister of Health of 14 June 2023 on the repeal of the state of epidemic emergency within the territory...

The Ministry of Finance has already made us look forward to annual changes in the TP-R form. Transfer Pricing information gets more and more detailed and complicated every year. This one is no different. We already know that the TP-R form will be expanded to include the so-called...

On 8 June 2023, the Court of Justice of the EU issued a judgment in case C-322/22, in which it stated that the provisions of the Tax Ordinance restricting taxpayers’ right to be granted interest on overpayments violate the fundamental principles of EU law. This means that taxpayers...

The rule under Polish tax law is a one-off tax levied on the same transaction, whereby – pursuant to Art. 2(4)(b) of the Act on Civil Law Transactions, the first to be analysed is the VAT treatment of transactions; and then – tax on civil law transactions (hereinafter:...

Slim VAT 3 – what changes await taxpayers from 1 July 2023? The amendment to the VAT Act [i.e., the Act of 26 May 2023 amending the VAT Act and certain other acts (Journal of Laws of 2023, item 1059)] commonly referred to as the SLIM VAT 3 package has been published in the Journal...

During audits, tax authorities often scrutinize the increase/decrease in the interest rate on loans with reference to the results of the benchmarking. It may happen that the newly determined interest rate in an intra-group loan is considered non-arm’s length, which paves the way to...