PLANNED CHANGED IN POLISH TAX – CORPORATE INCOME TAX

On June 28, 2022, the Polish Ministry of Finance sent for arrangements and consultations public projects, another amendment to the so-called Polish Order (group of tax legal acts), this time in the field of Corporate Income Tax in Poland.

Most of the proposed changes are to come into force on 01/01/2023. The draft provides, among others, the following solutions:

– Modification and postponement of the entry into force of the provisions on the minimum income tax,

– Repeal of the provisions on the so-called hidden dividend,

– Change of regulations on foreign controlled entities (CFCs),

– Changing the regulations on taxation with the pass-through taxation

– Waiving some of the taxpayers’ obligations with regard to withholding tax, interest and discounts on treasury securities, and making the structure of the payer’s declaration more flexible, excluding the obligation to use the pay & refund mechanism,

– Changes in the settlement of debt financing costs in tax costs,

– Changes in the provisions on the relief for making an initial public offering,

– Simplifying the provisions on relief for bad debts,

– Changing the regulations on the Polish holding company,

– Changing the provisions on taxation with a lump sum on company income,

– Changing the provisions on the documentation obligation in the scope of the so-called tax haven transactions,

– Clarification of the obligation to provide the head of the tax office competent for the taxpayer with information on contracts with non-residents, in the case of obligation to submit information on transfer pricing,

– Changing the provisions of the act on healthcare services by regulating the situation where the insured entrepreneur (lump sum tax payer) does not transfer to Social Insurance Institution information on monthly income from business activity,

– Clarification of the provisions concerning the settlement of losses by the companies forming tax capital groups.

KIELTYKA GLADKOWSKI KG LEGAL on current basis advises international corporate clients operating in Poland on complex tax issues.