On 8 September 2021 the Finance Ministry presented proposed changes to draft legislation introducing the "Polish Deal". The changes, made on the back of public consultations regarding the initial proposal (see our Newsletter 39/2021), will mainly affect the following issues:
Also, the "Polish Deal" proposal now provides for a new tax, called "large corporations tax", which is intended to be payable by companies and tax groups reporting a loss or a net income of less than 1% of operating income (not applicable to start-ups, financial enterprises, enterprises in temporary difficulties, and organisations with simple structures). The tax would amount to 0.4% of gross income and 10% of what are called "excessive" expenses (which are supposed to include borrowing costs, costs of professional/management services, unamortisable intangibles).
The FM's release is silent on any necessary revisions to other major changes proposed in the "Polish Deal" legislation (especially as regards "hidden" dividends, borrowing cost limitations, tax group compliance).
WTS&SAJA was involved in the consultation process, making a case and urging for major modifications of the "Polish Deal" proposal, including in the above areas.
We will keep you up-to-date with the progress of this legislation.
If this issue pertains to your business and you are interested interested in our assistance, please contact your WTS&SAJA consultant.
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