On 27th October 2017 the Bill amending the CIT Act (‘the Bill’) was passed by the lower house of the Polish Parliament. A few substantial modifications have been introduced to the draft Bill originally presented by the Ministry of Finance.
According to the draft Bill, expenses incurred on certain intangible services and royalties charged for the use of copyright, industrial property rights or know-how paid to related parties and entities seated in tax havens may be included in the tax deductible expenses up to the capped amount of 5 percent of EBITDA (calculated according to the algorithm outlined in the Bill).
Additionally, the proposed limitation is not to be applied to the costs of intangible services directly related to the purchase of goods or provision of services.
We anticipate that at its nearest meeting (scheduled on 9th and 10th November) the Senate will consider the Bill.
Please contact us if you would like to obtain more information on the draft amendments or discuss their impact on future tax obligations of your company as well as any possible changes in current business activity model to be best prepared for the new law.
© 2021 KPMG Sp. z o.o., a Polish limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit Governance page.
The information contained 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.