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On 12 March 2022, the Polish parliament adopted an Act on Assistance to Ukrainian Citizens. It was signed by the President and published in the Journal of Laws of the Republic of Poland the very same day. This Special Act, implemented in the wake of the armed conflict in Ukraine, brings many changes, including amendments of the PIT and CIT acts.

In early April 2021, the Ministry of Finance published explanations on transfer pricing adjustment. These explanations do not constitute the source of law; they are rather an attempt at offering some insight into how to apply legal regulations on transfer pricing adjustments between related entities. In this post, we are going to take a closer look at the most important insights included in the explanations published by the Ministry of Finance.

Od 1 stycznia 2021 r. Wielka Brytania w relacjach handlowych z państwami Unii Europejskiej traktowana jest jako państwo trzecie. Oznacza to dodatkowe obowiązki dla brytyjskich przedsiębiorców dokonujących czynności opodatkowanych podatkiem od towarów i usług w państwie członkowskim UE (np. w Polsce).As of 1 January 2021, the UK is deemed a third party in business relations with EU member states. This translates to additional obligations for UK businesses performing activities subject to VAT in an EU member state (e.g. in Poland).

From 2021, certain CIT payers can reinvest their earnings tax-free; this is a tax measure dubbed the ‘Estonian CIT’. It should be noted that this is by no means a reduction of the tax paid; it is about shifting the time when taxable income is recognised while making the accounting records simpler.

The Industry Shield, also known as Shield 6.0, has finally been signed. The vast majority of the provisions of the Act of 9 December 2020 amending the Act on special solutions related to preventing, counteracting and combating COVID-19, other infectious diseases and crisis situations caused by them, and certain other acts (Journal of Laws, item 2255) entered into force on Wednesday, December 16, 2020. However, many regulations on important forms of support will not come into force until the end of December.

Last week, the Sejm adopted a whole range of amendments of tax regulations. Apart from the fact that CIT will be levied from limited partnerships and the Estonian CIT will be introduced, taxpayers should also note the provision that is going to enter into force on 1 January 2021 and require companies to prepare the information about their tax strategy for the fiscal year and publish it to make it available to the public. However, this obligation will only apply to the largest taxpayers and tax capital groups.

We informed you in the first week of September that information on the work on the draft of major changes in the PIT and CIT taxes was published on the Council of Ministers’ website. Yesterday the draft saw the light of day and, unfortunately, it confirmed major concerns associated with it. The proposed amendments involve a number of matters that have been previously signalled, including, most notably, the corporate income tax (CIT) being imposed on limited partnerships. The changes are to enter into force as of the beginning of 2021.

The effects of the COVID-19 epidemic are noticeable in all economic sectors across the country. Since the beginning of the epidemic, the government has been working on solutions to help entrepreneurs save jobs.

What an unexpected twist – the Polish Government proposes to postpone the deadline for the fulfilment of transfer pricing obligations. These changes are included in the next anti-crisis draft act on subsidizing interest rates on bank loans granted to ensure financial liquidity of businesses affected by COVID-19 and amendments to some related acts (hereinafter: Shield 4.0), published on 28 May on the website of the Government Legislation Centre. Pursuant to the proposed changes, taxpayers will be given three additional months to meet the reporting obligations concerning transfer pricing. Below we discuss the scope of these changes.