New list of countries engaging in harmful tax competition

New list of countries and territories engaging in harmful tax competition
The Minister of Finance has published an updated list of countries and territories recognized as engaging in harmful tax competition concerning personal income tax (PIT) and corporate income tax (CIT). The new list includes a total of 25 jurisdictions, with a significant change being the removal of the Principality of Andorra.

The new regulations came into force on January 1, 2025, replacing previous regulations, including the Minister of Finance’s regulation of March 28, 2019 (Journal of Laws, item 599).

According to the regulation, the following countries and territories are recognized as engaging in harmful tax competition:

Anguilla – British Overseas Territory of the United Kingdom of Great Britain and Northern Ireland
Antigua and Barbuda
Sint Maarten, Curaçao – Countries within the Kingdom of the Netherlands
Kingdom of Bahrain
British Virgin Islands – British Overseas Territory of the United Kingdom of Great Britain and Northern Ireland
Cook Islands – Self-Governing Territory in Free Association with New Zealand
Commonwealth of Dominica
Grenada
Sark – British Crown Dependency
Hong Kong – Special Administrative Region of the People’s Republic of China
Republic of Liberia
Macau – Special Administrative Region of the People’s Republic of China
Republic of Maldives
Republic of the Marshall Islands
Republic of Mauritius
Principality of Monaco
Republic of Nauru
Niue – Self-Governing Territory in Free Association with New Zealand
Republic of Panama
Independent State of Samoa
Republic of Seychelles
Saint Lucia
Kingdom of Tonga
United States Virgin Islands – Unincorporated Territory of the United States
Republic of Vanuatu

Entrepreneurs and entities conducting transactions with counterparties from the jurisdictions listed must take into account the applicable regulations aimed at counteracting harmful tax practices. If the specified thresholds, as outlined in the CIT Act and PIT Act, are exceeded, they may be required to prepare transfer pricing documentation.

It is advisable to monitor changes in regulations to ensure compliance with the current tax laws and avoid potential sanctions. If transfer pricing documentation is required, we offer our assistance and encourage you to contact us.

Legal basis:

Regulation of the Minister of Finance of December 18, 2024, on the determination of countries and territories engaging in harmful tax competition concerning corporate income tax (Journal of Laws of 2024, item 1928).
Regulation of the Minister of Finance of December 18, 2024, on the determination of countries and territories engaging in harmful tax competition concerning personal income tax (Journal of Laws of 2024, item 1929).

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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