New taxation rules for limited partnerships in Poland
16 July 2021
As of 2021 limited partnerships having their registered office in the territory of the Republic of Poland have become taxpayers of corporate income tax.
Subject to taxation will be the current activity of the company and profits distributed to partners of such companies, similarly as in the case of limited companies and joint stock companies based on a 19-per cent flat-rate tax.
As of 1 January 2021, limited partnerships become CIT taxpayers, however, there is a possibility to postpone it until 1 May 2021, if the company so decides.
Rules for taxation of partners of a limited partnership on income from share in the profit of this partnership:
The taxation of the profits of the limited partnership‘s partners will take place according to principles analogous to those applied to distributions in limited companies or joint-stock companies, however different rules of deduction have been adopted depending on the status of the partner:
1. Limited partner
An exemption is provided for 50% of the income from share in the profit of limited partnership, but not more than 60,000.00 PLN.
This exemption applies to each company in which this entity is a limited partner.
The exemption does not apply if the limited partner:
- holds, directly or indirectly, at least 5% of the shares in a company having legal personality or a capital company which is the general partner of that limited partnership,
- is a member of the management board of the company which is the general partner,
- is an entity related to a member of the management board or a partner in the company being the general partner
2. General partner
A general partner of a limited partnership will be entitled to deduct from the revenue from profits in that partnership, tax from operations in the proportion in which he holds the right to share in the profit.
The amount of such deduction may not, however, exceed the amount of tax based on a 19% flat-rate tax on the profit attributable to the general partner.
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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