Polish Deal

As usual, in December, entrepreneurs think about how much the changes in the regulations that will come into force from January of the new year will affect their tax settlement and operations. To make it easier for you to find yourself in the maze of regulations introduced by the new Polish Deal (and not only), we have prepared a quick summary. Here are the most important changes in the law that will affect doing business in Poland in 2023.

The Ministry of Finance, the Transfer Pricing Forum and the Director of the National Revenue Administration Information Centre in many documents try to interpret the provisions on transactions with the so-called tax havens. Unfortunately, the explanations we receive are not always what the taxpayers want. In the individual ruling of 11 January 2022, the Director of the National Revenue Administration Information Centre presented a position unfavourable for taxpayers regarding the so-called tax haven transactions. How can this affect entities carrying out indirect tax haven transactions?

Article 15e, in force until the end of 2021, limited the taxpayer’s right to treat expenses on intangible services purchased from related parties as tax-deductible costs. This provision caused many concerns, and it seems that they continue despite the fact that the said provision has been repealed…

The Polish Deal that entered into force on 1 January 2022 (with certain exceptions) involves a number of major changes both for companies and natural persons. The changes in 26 legal acts have been introduced in one big package. They have a great impact on crucial things from the taxpayer’s perspective, such as health insurance premiums, personal allowances, new tax thresholds and a range of other regulations. In the article below, we are going to discuss the most important ones the entrepreneurs surely cannot afford to overlook. We have already addressed these changes in detail on our blog, and we encourage you to read it.

The last major amendment to withholding tax regulations was supposed to take effect on 1 January 2019. However, the Ministry of Finance has continued to push back the date of their final implementation by way of successive regulations. They have also announced that they are already working on some new amendments. Thus, Polish entrepreneurs and their foreign contractors still do not know for sure when the announced regulations will become effective nor what they will actually entail.

The Ministry of Finance has just published their proposed amendments of transfer pricing regulations under the Polish Deal. The goals behind the suggested amendments are, among others, to make it easier for taxpayers to meet their reporting obligations and simplify the local file.

We are going to continue here with the Polish Deal and tax changes planned for 2022. After the regulations offering simplified procedures in the choice of the Estonian CIT and the innovation support package, another noteworthy new option is preferences for holding companies. This proposal seems interesting, but a more careful analysis of the regulations shows that there are many hazards involved when it comes to these new preferences.

On Monday, 26 July, a draft act amending the PIT Act, CIT Act and certain other acts was published, being a part of what is known as the “Polish Deal”. It rolls out many taxation changes, including more lenient conditions for applying the “Estonian CIT”.