Poland: Draft bill includes amendments to “Polish Deal” corporate income tax measures
The amendments would become effective 1 January 2023.
The amendments would become effective 1 January 2023.
A draft bill amending corporate income tax provisions enacted as part of the “Polish Deal” was submitted on 25 August 2022 before the Lower House of the Polish Parliament for the first reading—which will take place during the seating on 2 September 2022.
The amendments would become effective 1 January 2023.
The Polish Deal refers to legislation amending the income tax laws affecting corporations and individuals, as well as the value added tax (VAT) and other tax legislation, which was passed on 29 October 2021 and is generally effective as of 1 January 2022. Read TaxNewsFlash
The government on 28 June 2022 published proposed legislation that included the amendments in the draft bill. Read TaxNewsFlash
The key changes under the draft bill include:
- Modification and postponement of minimum income tax provisions by two years (instead of the previously proposed one-year postponement)
- Repeal of hidden dividend regulations
- Amendments to the withholding tax regime
- Repeal of the requirement to follow the arm’s length principle and satisfy the documentation obligation for indirect tax haven transactions
Read an August 2022 report prepared by the KPMG member firm in Poland
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