Poland: Amendments in draft income tax legislation

Poland: Amendments in draft income tax legislation

A draft bill to amend the corporate income tax law, the individual (personal) income tax law, and the “flat-rate” income tax law was submitted on 29 September 2020 to the lower house of the Polish parliament.

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The draft bill generally reflects proposals that were announced in September 2020—read TaxNewsFlashbut with certain amendments.

One change reflects that limited partnerships and certain general partnerships in Poland would be subject to treatment as corporate income taxpayers. This treatment would not apply to general partnerships that submit the names and information about their individual partners (that is, those that are subject to individual income tax in Poland). At the same time, the draft bill would provide an exemption from tax on the portion of revenue earned by limited partners through shares in a limited partnership.

Another amendment would impose on certain taxpayers a requirement to prepare and publish a report on the implementation of a “tax strategy” for the given tax year. The reporting obligation would apply for: (1) taxpayers with revenue exceeding €50 million in the tax year; and (2) tax capital groups. The report would be required to be presented within nine months from the due date for the corporate income tax return. Real estate companies would be excluded from this reporting obligation.

Other amendments relate to transfer pricing. Read TaxNewsFlash


Read an October 2020 report [PDF 254 KB] prepared by the KPMG member firm in Poland

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