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Tax strategy: A step toward transparency or just more red tape?
Tax strategy: A step toward transparency or just more red tape?
Despite the difficulties this year, Polish lawmakers did not forget about their annual update of tax laws. Under the recently adopted regulations, the Treasury will seek to learn more about taxpayers by requiring them to draft, file and even publish a tax strategy. Is this a move toward transparency for the country’s largest companies, or another unnecessary formality?
Tax strategy: A step toward transparency or just more red tape?
Selected rules for imposing personal income tax on e-sport
E-sport is gaining in popularity, resulting in an increase in the number of players, games and spectators, as well as an increase in revenue from e-sport. Such revenue is taxable, but it is not always clear under which rules.
Selected rules for imposing personal income tax on e-sport
Transfer pricing documentation is not usually required for domestic transactions—but sometimes it is
Transactions between related parties at a value above statutory thresholds must be identified in local transfer pricing documentation, but the regulations provide for a number of exceptions.
Transfer pricing documentation is not usually required for domestic transactions—but sometimes it is
Starting business activity in Poland as a sole proprietorship: Pros and cons of various taxation forms
Compared to other forms of professional activity of an individual (for example working under an employment contract or contract of mandate), individual business activity allows the individual to benefit from a range of forms of income taxation. Thus, before generating their first business revenue in Poland, individuals they should examine their activity to find the most appropriate form of taxation. Below we present the available forms of taxation for business income, with their main advantages and disadvantages.
Starting business activity in Poland as a sole proprietorship: Pros and cons of various taxation forms
Starting professional activity in Poland—what about taxes and social insurance?
Employment contract, contract of mandate, or sole proprietorship (individual business activity): these are the most common forms of cooperation with individuals in Poland. In this article, we explain the tax and social insurance burdens for individuals working under an employment contract and contract of mandate. In the next article, we will discuss different forms of business income taxation.
Starting professional activity in Poland—what about taxes and social insurance?
Amendments to the Inheritance and Gift Tax Act
The set of parties who can benefit from inheritance and gift tax exemptions will expand. The exemption will now apply to persons who are or have been in a foster family, a family-style children’s home, a care and educational institution, or a regional care and therapeutic institution, as well as persons forming a foster family, running a family-style children’s home, or working with children in a care and educational institution or a regional care and therapeutic institution.
Amendments to the Inheritance and Gift Tax Act
Tax interpretations on the obligation to prepare transfer pricing documentation
Although the definition of a “controlled transaction” has been introduced into the PIT Act and the CIT Act, taxpayers (and lawmakers) still have doubts which events require preparation of transfer pricing documentation. Today, we write about transfer pricing documentation in the case of contributions to share capital, share redemptions, and dividends.
Tax interpretations on the obligation to prepare transfer pricing documentation
Securing the payment of taxes may protect against exclusion
If tax arrears are a ground for exclusion under the procurement documentation, exclusion can be prevented by making payment or entering into an agreement with the tax authority. It is worth considering whether providing voluntary security would be an effective way to prevent exclusion.
Securing the payment of taxes may protect against exclusion
Taxation of real estate companies
On 30 September 2020, an extensive set of proposed amendments to tax laws was submitted to the Polish Parliament. We have already written about how general partnerships and limited partnerships are to be taxed. In this article, we describe the planned form of taxation of income from the sale of real estate companies and related doubts.
Taxation of real estate companies
Planned rules for imposing corporate income tax on limited partnerships from 2021
The guidelines for imposing corporate income tax on limited partnerships and some registered partnerships have now been stated with more specificity. On 16 September 2020 a draft Act Amending the Personal Income Tax Act, the Corporate Income Tax Act, the Act on Flat-Rate Taxation of Certain Income of Natural Persons, and Certain Other Acts (draft no. UD126) was published on the website of Poland’s Government Legislation Centre. The draft and the extensive justification for the proposal provide details of the rules for taxation of limited partnerships from 2021 forward. It should be borne in mind that these rules may change during the course of the legislative process.
Planned rules for imposing corporate income tax on limited partnerships from 2021
Limited partnerships and some registered partnerships to be subject to corporate income tax
The Ministry of Finance intends to impose corporate income tax on limited partnerships, and on registered partnerships whose shareholders (taxpayers participating in their profits) are not disclosed. These types of partnerships will probably become CIT payers starting from 2021.
Limited partnerships and some registered partnerships to be subject to corporate income tax
Transfer prices: You can never be too sure when making an adjustment
Adjustments of transfer prices have generated a lot of uncertainty among taxpayers for a long time, as evidenced by the large number of individual tax interpretations issued in this area. Due to the change in regulations, and because the right to make an adjustment is affected by numerous factors, taxpayers seek interpretations from the revenue administration even when the facts are not very complicated.
Transfer prices: You can never be too sure when making an adjustment