Amendment to the Accounting Act signed by the President

On April 16, 2024, the President signed an amendment to the Accounting Act, which requires large companies to break down information on income tax paid and other data by country.

The amendment aims to align Polish regulations with the EU Directive 2021/2101 of the European Parliament and the Council of November 24, 2021, which amends Directive 2013/34/EU as regards disclosure of information on income tax by selected entities and branches.

Who will be affected by the new obligations?

The obligation to prepare, publish, and make available an income tax report will apply to:

Top-Level Parent Companies:

whose turnover in the consolidated financial statements exceeded 3.5 billion PLN for each of the last two financial years.

Individual Companies:

Whose turnover in the annual financial statements exceeded 3.5 billion PLN for each of the last two financial years.

Additionally:

Subsidiaries of a certain size controlled by ultimate parent companies outside the European Economic Area (EEA) and whose turnover exceeded 750 million EUR for each of the last two financial years.
Branches whose turnover for each of the last two financial years exceeded PLN 51 million revenues and were established by companies outside the European Economic Area whose turnover for each of the last two financial years exceeded EUR 750 million.

Reports and declarations must be submitted within 12 months of the balance sheet date and published on the websites of these companies. Information is provided for each tax jurisdiction in which the group or sole proprietorship is liable to income tax due to residence, permanent establishment, or permanent business activity.

This obligation will apply only to ultimate parent entities and standalone entities that are corporations, joint-stock companies, partnerships, or limited partnerships where all partners with unlimited liability are corporations, limited partnerships, or companies from other countries with a similar legal form.

The Act provides that there is no obligation to prepare the above report in two situations:

If the ultimate parent entity and all its subsidiaries and their branches, or the independent entity and its branches have their registered office or have a permanent place of business exclusively in the territory of the Republic of Poland.
If the ultimate parent entity or an independent entity operating under the Banking Law discloses additional information in the activity report.

When will the Regulations enter into Force?

The new regulations will enter into force 14 days after their announcement, except for the parts that will enter into force on June 22, 2025. The amendment will apply to income tax reports for the financial year starting after June 21, 2024.

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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