Poland: New version of corporate income tax bill | KPMG | GLOBAL

Poland: New version of corporate income tax bill

Poland: New version of corporate income tax bill

A new version of a draft bill to amend Poland’s corporate income tax law (and also to amend the individual (personal) income tax law) was submitted on 4 October 2017 to the parliament.

1000

Related content

Overview

A main objective of the bill is to “tighten” the corporate income tax system so that the tax paid by large multinational enterprises is connected or linked to the actual location where the profits are derived—in particular by addressing and preventing the use of “aggressive tax planning” mechanisms.

Compared to the original draft version of the bill (presented in July 2017), certain measures have been liberalized—including the rules for thin capitalization and the taxation of intangible services. New provisions have also been introduced, including measures regarding debt push-down structures. 

Proposed changes

The proposed corporate income tax measures include:

  • Introducing two sources of income—one of a capital nature and the other on income of business activity and of special branches of agricultural activities
  • Changing the thin capitalization rules
  • Providing an exclusion from tax deductible costs, for interest on credits and loans incurred for the purpose of acquisition of shares in a company
  • Limiting the tax deductibility of payments for certain intangible services and fees for the use of copyrights, industrial property rights, or know-how
  • Modifying the tax rules for “tax capital groups”
  • Amending the rules for depreciation of intangible assets
  • Introducing a minimum tax on commercial property
  • Changing the controlled foreign company (CFC) rules
  • Revising the rules on the taxation of demergers
  • Broadening the scope of the real estate company clause to include almost all commercial entities and receivables
  • Introducing an economic substance (anti-avoidance) clause
  • Increasing the "one-off" tax depreciation threshold
  • Adjusting of the list of annual depreciation rates to the 2016 fixed assets’ classification

The amendments are anticipated to have an effective date of 1 January 2018.

 

Read an October 2017 report [PDF 350 KB] prepared by the KPMG member firm in Poland

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.

Connect with us

 

Request for proposal

 

Submit