FLIP – business transfer abroad

For technology companies that are thinking about developing their operations on foreign markets, obtaining financing from foreign funds may turn out to be an indispensable element of their business plan. Investors from the American market, the cradle of technology giants, play a special role. The condition for obtaining access to financial resources from American funds is to conduct business in the USA. Meeting this condition will most often involve establishing a company in the USA and transferring some of the assets and functions from Poland (so-called FLIP). FLIP may also apply to the transfer of business (assets) to a European Union member state or the UK. Conducting this process requires knowledge and assistance from an advisor who will take into account the perspective of Polish and foreign legal and tax regulations.


How can we help you?

We will provide comprehensive tax support for the selected jurisdiction (EU, UK, USA) in the following areas: 

  • choosing an effective and tax-safe FLIP model, taking into account anti-abusive regulations,
  • correct settlement of CIT and VAT FLIP (including the creation of dedicated operating companies and transfer of assets/functions to them, creation of a holding entity or assignment of holding functions to existing companies),
  • assessment of the possibility of implementing the Polish Holding Company model (exemption for dividends and sale of shares),  
  • tax qualification and CIT and VAT tax consequences of subsequent cross-border intra-group settlements (withholding tax, appropriate classification of revenues and costs, structuring of VAT settlements),
  • minimizing risks in the area of ​​transfer pricing.

Benefits for the customer

  1. Choosing a safe and tax-efficient FLIP model, 
  2. Carrying out FLIP and ensuring the tax correctness of subsequent settlements within the group, also from the perspective of transfer pricing.

Selected experiences

Comprehensive tax and legal coordination of various forms of business reorganization (in-kind contributions, establishment of business entities, change of tax residence, cross-border mergers, divisions, transformations)
Tax verification of settlements in connection with the reallocation of assets within the capital group
Analysis of the possibility of implementing the Polish Holding Company model (and thus benefiting from the exemption for dividends and sale of shares)
Analysis of risks related to exit taxation, qualification of foreign companies as CFCs, the GAAR clause and the application of regulations regarding tax schemes (MDR)
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Feel free to contact us

Monika Dziedzic

Partner | Tax adviser | Attorney at Law
E: monika.dziedzic@mddp.pl
T: (+48) 600 389 333