Global

Details

  • Service: Tax, International Corporate Tax, Global Transfer Pricing Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/31/2012

Poland - Proposed legislative changes to corporate income tax 

August 31: Poland’s Finance Ministry proposed legislative amendments to the corporate income tax law.

The amendments also include proposed changes to the individual (personal) income tax law. The following discussion focuses on the corporate income tax proposals.


Corporate tax proposals

The proposed changes include:


  • Extending corporate taxpayer status to limited joint-stock partnerships
  • Determining the initial value of fixed assets of a European company, European cooperative society or permanent establishment located in Poland (for assessment purposes)
  • Repealing the right to claim benefits from the participation exemption on distributions of dividends / other income from a “participation in the profits of legal persons” treated as tax-deductible for the distributing entity (i.e., profit participating loan)
  • Amending the taxation of in-kind transfers (including in-kind dividends) at the level of a payer / transferor
  • Changing the “retained / undivided profits” provisions
  • Clarifying the transfer pricing rules and transfer pricing documentation provisions (see TaxNewsFlash-Transfer Pricing: Poland - Proposed legislative changes to transfer pricing documentation requirements)
  • Clarifying the thin capitalization provisions and extending them to indirect shareholders
  • Standardizing definitions of derivative instruments and the rules regarding the point of recognition for their taxable income
  • Clarifying the algorithm applicable on a partner’s exit from a partnership
  • Allowing an entity maintaining securities accounts to act as a tax remitter
  • Clarifying taxable cost on share redemption, following a share-for-share exchange
  • Clarifying information requirements related to EC Directive (June 2003) on taxation of savings income in the form of interest payments
  • Updating list of entities pursuant to EC common system of taxation applicable in the case of parent companies and subsidiaries of different EU Member States

The amendments are scheduled to be effective 1 January 2013.


Read an August 2012 report [PDF 163 KB] prepared by the KPMG member firm in Poland: The Ministry of Finance has published draft amendments to the Corporate Income Tax Act




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