A new law effective 1 February 2016 provides for a tax on banks, lending institutions, and insurance companies. Because of the expanded scope of the legislation, certain entities that conduct lending activities—even to a marginal degree—will be subject to the financial institutions tax.
Given the expanded scope of the legislation, there is a risk that entities in a group that grant consumer credit may be regarded as taxpayers subject to the financial institutions tax.
In general, the tax base is the excess of the sum of the taxpayer’s asset value over a tax-free amount of PLN 200 million (approximately U.S. $50.6 million). The new law provides a method for determining the taxable base with respect of taxpayers operating within a group, subject to the annual rate of tax (as shown in the example below of 0.44%).
To understand this law, consider the following example.
Companies A, B, and C belong to the same capital group. Companies A and B are lending institutions. Company C is not a lending institution (and thus is not subject to the financial institutions tax).
The sum of each company's assets is:
The financial institutions tax calculation is made, as follows:
Total financial institutions tax for the group, for the year = PLN 8.36 million
Read a February 2016 report [PDF 318 KB] prepared by the KPMG member firm in Poland: Banking tax – not only for financial institutions and chargeable repeatedly
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.