Significant changes in the context of the structure of the tax offices are upcoming as of 1 January 2021 for entities of strategic importance for the economy. One national and 19 local specialized tax offices Establishing one specialized tax office of a national range for a group of key taxpayers, including taxpayers with revenues exceeding […]
New reporting obligation for a specific task contract (umowa o dzieło) as of 1 January 2021
The amendment to the “COVID-19 Act” dated March 31, 2020, introduced an additional obligation for companies engaging individuals under specific task contracts (umowa o dzieło). As of January 1, 2021, a remitter (Polish company) will be obliged to inform Social Insurance Institution (ZUS) of the conclusion of each specific task contract, provided that: the contract […]
No CFC for Tax Transparent Entity
This is the end of the 5-year CFC dispute. The Supreme Administrative Court finally confirmed what we have argued for from the beginning: that income derived by a tax transparent partnership should be considered business activity income aid, in consequence, non-passive income on the grounds of the CFC regulations. What was the background of the dispute? Some time ago the tax authorities came to the conclusion that it would be good to cut all the discussions and […]
Minister of Finance’s general ruling on a 50% rate of the tax-deductible cost of revenues for authors
According to the recently published general ruling of the Minister of Finance, tax-deductible costs connected with the use of copyright by authors and performers of related rights amount to 50% of revenue. These costs are calculated on income reduced by social security contributions. The ruling indicates the conditions under which it is possible to apply […]
Robotization relief – how to automate Polish entrepreneurs?
The Ministry of Finance plans to introduce tax relief for robotization and automation as of the second quarter of next year, at the latest in mid-2021. However, we are still waiting for a draft bill introducing this new solution. The main goals of the Polish legislator are: increase of the number of robots in industrial […]
Important amendments to CIT and PIT law in Poland
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) […]
CIT AND PIT IMPROVEMENT – LIMITED PARTNERSHIP COMPANY AS A CIT TAXPAYER
Limited partnerships are to become CIT taxpayers. This means that automatic compensation of income of one limited partnership with the loss incurred by another one at the level of partners of these entities will no longer be possible. Such structures will not be tax-effective anymore. This is the moment to consider other possibilities, to include […]
Changes in taxes in Poland from 1 July 2020 – summary
Beginning from 1 July 2020 the following tax changes enter into force in Poland: Change of provisions concerning the so-called White List (resulting in changes in PIT, CIT and VAT) Making payments using a split payment mechanism (MPP) to a bank account not included in the White List does not generate a risk in income […]
Comparison of CIT-TP and TPR – Part 1: General information
The purpose of this publication is to summarize basic differences between CIT-TP form (submitted by larger taxpayers in recent years) and its new equivalent – TPR form. A wider range of related parties will be required to submit the TPR form. In the publication, we compare the two forms based on regulations of the Corporate […]
Changes in PIT, CIT, VAT and Tax Ordinance Act – to make everyone’s life better
On 6 May 2020 the Parliament (the Sejm) adopted a draft bill amending PIT, CIT, VAT Acts, and the Tax Ordinance Act. Among proposed changes are in particular: the possibility of making payments on bank accounts not indicated on the so-called White List and adapting the PIT and the CIT Acts to the Polish Classification […]