Hybrid mismatches

Starting with the CIT return for 2021, taxpayers must take into account hybrid mismatches regulations in their tax returns.

These regulations may result in the obligation to exclude certain expenses from tax-deductible costs. Such expenses may include interest, remuneration for services and, in certain cases, virtually all of the taxpayer’s expense items.

For whom?

For all CIT payers. In particular, those with shareholders (direct or indirect) from abroad or those receiving financing from foreign related parties. Most frequently hybrid mismatches occur in the case of entities with (indirect) shareholders from the USA.


Hybrid mismatches may result both from transactions entered into by the Polish taxpayer and from the decisions made by its (indirect) shareholders or contractors. This makes it necessary to verify a number of circumstances that may affect the occurrence of hybrid mismatches, the income and tax declared in Poland. Under certain conditions, Polish taxpayers may exclude the application of certain provisions on hybrid mismatches. However, the obligation is on taxpayers to document that such conditions have been met. In conclusion, Polish taxpayers operating in international capital groups should take into account hybrid mismatches in order to correctly complete their CIT returns and tax settlements.

How can we help you?

We will verify the occurrence of hybrid mismatches in your structure

We will identify the possibility of an exemption from the application of the regulations and we will assist you in the completion of documents confirming this right.

We will indicate how to include hybrid mismatches in CIT returns and settlements.

We will verify hybrid mismatches in target companies as part of due diligence.

We will develop a procedure to verify hybrid mismatches.

We will provide you with a training on the application of these provisions.

We will assist you in contacts with the tax authorities with regard to hybrid mismatch issues.

Feel free to contact us:

Justyna Bauta-Szostak

Partner | Tax adviser | Attorney at Law
E: justyna.bauta-szostak@mddp.pl
T: (+48) 502 241 631

Łukasz Kupień

Partner | Tax advisor
E: lukasz.kupien@mddp.pl