Government Legislation Center has published a draft legislation introducing a number of significant changes regarding business taxation in Poland.
On the one hand, the proposed regulations create preferences for some business areas, and on the other hand they are yet another step hindering structuring and tax optimization. The proposed changes include:
Preferential 5% tax rate for income from intellectual property rights resulting from research and development.
A new 9% income tax rate (CIT) will replace the current 15% for those taxpayers whose revenues do not exceed 1.2 mln EUR in a tax year.
Deduction of the hypothetical value of interest on own equity retained in the company for investments. The maximum deduction value is PLN 000 PLN.
Costs of receivables trading
A mechanism that allows recognition of tax deductible costs in relation to the acquisition of debt portfolios. It is proposed to make it possible to recognise the full cost base for the acquisition of receivables (while maintaining the inability to recognise losses) and to introduce new tax rules for debt portfolios.
Exemption from withholding tax on interest and discount obtained by non-residents from Eurobonds.
The amendment proposes comprehensive regulations in the field of virtual currency trading.
Introduction of income tax on unrealised profits in case of transfer of assets outside of Poland or change of tax residence. The proposed tax rates for PIT taxpayers are to be 3% if the tax value of an asset has not been determined, and 19% in other cases. CIT taxpayers, on the other hand, are subject to the 19% rate.
Introduction of the obligation to provide tax authorities with information on restructuring and capital structures.
The amendment introduces a number of changes and clarifies the application of the anti-avoidance clause.
Additional tax liability
The regulations are to introduce an additional tax liability in the event of an assessment of tax as a result of identifying circumvention of tax regulations.
New rules for collecting withholding tax
In the case of payments exceeding 2 million PLN per year to a single taxpayer, the tax remitter will be obliged to collect the withholding tax at the national rate (interest, intangible services 20%). Then it will be possible to apply for a refund of the difference between the preferential and domestic rate.
The amendment is currently at the stage of works in the Ministry of Finance. The above changes will affect the majority of taxpayers, in particular those conducting cross-border activities.