Please find below the most important changes which may affect your business in Poland:
- extending limited tax liability towards income from the sale of shares in real estate companies -> obligation of analysis of the structure of RE companies within 12 months prior to a transaction;
- partnerships (spółka komandytowa and spółka jawna in some cases) are about to become CIT taxpayers -> this means the end of effective structures based on tax transparent partnerships and allowing for tax consolidation of tax results of the entities at the level of their owner;
- increasing or lowering tax depreciation rates will not be possible with respect to fixed assets used for the purpose of activity exempt from taxation;
- the new definition of used fixed assets -> they need to be used beforehand by another taxpayer than the one who considers adjusting tax depreciation rates;
- TP documentation threshold set at the level of PLN 100k for transactions with the entity having its seat or management in a tax haven or transactions in which their beneficial owner is located in a tax haven;
- a significant limitation of the amount of so-called tax abolition relief -> this means in practice obligation of paying additional tax in Poland by cross-border assignees;
- transfer from an individual to a company of obligation of the settlement of capital gain from the sale of shares in real estate companies provided that at least one of the parties of the transaction is a Polish tax resident; obligation of establishing fiscal representative for RE company not having its seat or management in Poland under a fine up to PLN 1M; obligation of submitting information on shareholders of such a company;
- exemption from minimal tax till the end of 2020 (and potentially longer, up to the moment when the COVID pandemic is over);
- including liquidation proceeds in revenues subject to taxation through in-kind settlement;
- adjusting the revenues threshold (to EUR 2M) for application of lowered 9% CIT rate;
- the obligation of preparation and publishing statement from the execution of tax strategy for the given year, solely for so-called big taxpayers.
The changes are about to enter into force as of 2021.
Should you wish to discuss the above in details, please kindly contact:
Head of Tax, Board Member