How will the new requirements affect your business?
In November 2020, Poland adopted a number of amendments to their corporate tax rules. Among other things, the amendments entail an extensive obligation on companies to publish their tax affairs. Companies covered by the rules have to account for the implementation of their tax strategy annually. With this change, businesses will now need to communicate how they are applying their tax strategy in practice. For most businesses, this new requirement must be addressed as the current tax strategies and other disclosures do not provide sufficient details to comply with these additional requirements.
The rules came into force on 1 January 2021, and reporting is due no later than 12 months from the end of the tax year. This means that covered companies with tax years following the calendar year must report for the first time for the year 2020 by the end of 2021. After this, they have to report annually.
For Danish groups, the legislation is relevant if their turnover in Poland is more than EUR 50m, or if the group has a Capital Group (joint taxation) in Poland. The report must be published on the company's website. In addition, the report must also be submitted directly to the Polish authorities. The information provided in the report should therefore be appropriate for scrutiny by both authorities and competitors.
Is your Danish group covered? Get an overview of the most important questions in the PDF below: