Corporation Taxes | HLB Poland

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Coverage of losses from the statutory fund of a foundation and tax exemption

Recently, the Supreme Administrative Court of Poland (Polish: Naczelny Sąd Administracyjny, NSA) issued an important ruling regarding the issue of overpayment of corporate income tax by foundations with the status of a public benefit organization. This judgment, issued at the hearing on April 10, 2024, dismissed the cassation appeal filed by the foundation against the

19 July 2024

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Minimum tax – can also be paid by entities reporting a loss

As of January 1, 2024, regulations on the minimum corporate income tax have come into force. The purpose of the minimum tax is to tax entities that do not generate income or achieve it at a minimum level without a justified reason. However, entities reporting a loss must also pay it. Here are the key

17 July 2024

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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

24 June 2024

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WHT relief for holding companies: How and when can they be applied?

Preferential rules for taxing dividends and other income of holding companies in Poland and in the European Union are intended to support holding activities and avoid double taxation. In practice however, it is becoming increasingly difficult to benefit from WHT relief for holding companies in Poland. Why and when can they be applied? What advantages

20 June 2024

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The FASTER Directive is approaching: Major changes to the Settlement of Withholding Tax (WHT)

The FASTER Directive on Withholding Tax (WHT) The European Union aims to simplify and speed up the procedures related to withholding tax relief in order to increase the efficiency of EU capital markets. The new initiative provides for the introduction of two mechanisms: withholding tax relief and a quick refund system for overpaid taxes. The

14 June 2024

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Application of R&D tax relief in a consulting services company

In the judgment of March 7, 2024, ref. no. II FSK 753/21, the Supreme Administrative Court (NSA) addressed the issue of the application of the R&D tax relief in a consulting services company. This ruling holds significant importance for companies operating in this industry and benefiting from this tax relief. The taxpayer’s situation In the

17 May 2024

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A cash payment into the supplier’s bank account cannot be included in deductible expenses

In the judgment dated March 27, 2024 (ref. I SA/Lu 33/24), the Provincial Administrative Court in Lublin ruled that a cash payment into a supplier’s bank account cannot be included in tax-deductible expenses, as it does not meet the requirements of Article 22p(1) of the Personal Income Tax Act (PIT). Context An entrepreneur requested an

13 May 2024

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Non-deductibility of expenses for organizing team-building meetings with co-workers from the company’s income

The Supreme Administrative Court (NSA) has once again taken a position on the deduction of expenses for organizing integration meetings. In its latest ruling dated March 12, 2024 (ref. no. II FSK 759/21), the NSA confirmed that expenses for integration meetings with employees and co-workers, who work under B2B contracts, cannot be included in deductible

8 May 2024

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Bahamas, Belize, Seychelles and Turks and Caicos Islands removed from EU list of tax non-cooperative jurisdictions

In February 2024, the Council of the European Union decided to remove the Bahamas, Belize, Seychelles, and Turks and Caicos Islands from the list of EU jurisdictions reluctant to cooperate for tax purposes. As a result of these changes, there are still 12 jurisdictions remaining on the list which are considered reluctant to cooperate in

8 April 2024

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Increased controls in the area of transfer pricing

The Ministry of Finance has announced that tax authorities are going to increase controls in the area of transfer pricing. Data shows that in the first nine months of 2023, tax authorities conducted over 12,800 tax and over 7,000 combined customs and tax audits. In the face of globalization and increased trade among companies belonging

11 March 2024

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Protective opinion regarding the restructuring and transformation of a limited partnership into a limited liability company, as well as its taxation under Estonian CIT approach

On January 22, 2024, a statement was issued regarding the release by the Head of the National Tax Administration (KAS) of a protective opinion dated November 29, 2023, concerning the process of a partner withdrawing from a limited partnership and transforming it into a limited liability company, opting for taxation under the flat-rate income tax

20 February 2024

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Individual tax micro-account – What to know in 2024

What is an individual tax micro-account? An individual tax micro-account serves as an individualized platform designed for making tax payments. Introduced on 1 January 2020, it was designed to streamline and simplify the process of tax payments. This system allows both taxpayers and employer-payors to make payments to the tax office in a more organized

4 January 2024

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Penalties for failure to comply with transfer pricing obligations

We would like to remind you about the obligation to submit transfer pricing information for the year 2022. The deadline for submitting information for entities whose tax year coincides with the calendar year is January 31, 2024. For other taxpayers, the statutory deadline is the end of the 11th month after the end of the

2 January 2024

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New draft regulation for the individual tax micro-account

On November 14, 2023, the Ministry of Finance has published a draft regulation on its website, that expands the catalogue of types of receivables that can be paid via tax micro-accounting. According to the information provided by the Ministry of Finance, the draft was prepared to update the list of payments. The draft is currently

5 December 2023

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Minimum income tax from 1 January 2024

From 1 January 2024, minimum rules for corporate income tax will come into force in accordance with Article 24ca of the CIT Act. This tax is intended to tighten the tax system and minimise the tendency to shift income from Polish companies to jurisdictions with a favourable tax regime. The purpose of the minimum tax

24 November 2023

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Foreign controlled entities (CFCs) – tax on pass-through income

Pass-through income is defined as a specific type of tax-deductible expenses incurred by a taxpayer to a non-resident related party during the tax year. Taxes on pass-through income at a rate of 19% on the taxable base must be paid by taxpayers provided several conditions are met. I. The taxpayer must make payments of receivables

12 July 2023