Poland financial institutions tax | KPMG | GLOBAL

# Financial institutions tax in Poland

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.

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### KPMG observation

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.

### Tax calculation

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%).

### Example

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:

• Company A—PLN 800 million
• Company B—PLN 150 million
• Company C—PLN 500 million

The financial institutions tax calculation is made, as follows:

• Company A—(PLN 800 million + PLN 150 million) minus PLN 200 (i.e., the tax-free amount) x 0.44% = PLN 4.18 million of tax per year.
• Company B--(PLN 800 million + PLN 150 million) minus PLN 200 (i.e., the tax-free amount) x 0.44% = PLN 4.18 million of tax per year.
• Company C—No tax

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

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