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BEFIT: Harmonising taxable income for large corporate groups in the European Union
The European Commission has published a proposal for a directive to implement the BEFIT concept (short for “Business in Europe: Framework for Income Taxation”). The new law would allow the creation of standardised rules for calculating taxable income for purposes of corporate income tax. Taxpayers belonging to a BEFIT group will be taxed in the country of their residence, but only with respect to a portion of the tax result determined for the entire group.
BEFIT: Harmonising taxable income for large corporate groups in the European Union
Settlement of tax losses after a merger by takeover
Under current regulations in Poland, in post-merger accounting, tax losses of the acquired company cannot be recognised. However, it is possible to settle tax losses of the acquiring company, although this is not always the rule. In determining whether the acquiring company is entitled to settle tax losses, it is necessary to assess whether the company’s actual principal business after the takeover is wholly or partially different from that before the takeover. What, in essence, is covered by the notion of “actual principal business”? When should the principal business be considered to have changed “in part”?
Settlement of tax losses after a merger by takeover
Debt-to-equity conversions in practice
Converting a company’s liability into capital can be a way to “heal” its balance sheet. This can increase the company’s credibility with counterparties and reduce the risk of insolvency. Conversion can also generate tax benefits, for example by reducing interest expense to below the deductible limit.
Debt-to-equity conversions in practice
VAT sanctions: Amendments under the Slim VAT 3 package
No more rigid catalogue of sanctions for VAT offences. The tax authorities will be able to reduce the amount of sanctions taking into account the circumstances of the irregularities. But taxpayers who knowingly commit tax fraud will be hit with a sanction of 100% of the underpaid tax or excess input tax claimed.
VAT sanctions: Amendments under the Slim VAT 3 package
Taxes and the family foundation
Along with the provisions allowing for establishment of a family foundation, entirely new tax provisions are being introduced, with attractive rules for taxation of asset transfers and foundation activities, but also a slightly too varied patchwork of tax rates.
Taxes and the family foundation
Court of Justice will assess whether the exemption of rail infrastructure from property tax is state aid
Rail infrastructure and the land on which it is located are exempt from property tax in Poland. Is that unauthorised state aid? The answer from the Court of Justice could have far-reaching consequences.
Court of Justice will assess whether the exemption of rail infrastructure from property tax is state aid
VAT on NFTs: The position of the EU VAT Committee
How VAT should be charged on trading in NFTs is of interest to taxpayers and tax authorities in various European Union countries, which sometimes take different approaches. On 21 March 2023, the EU VAT Committee published Working Paper no. 1060, entitled “Initial VAT reflections on non-fungible tokens,” touching on a number of issues concerning the VAT treatment of NFTs. As NFT transactions, including high-value ones, become more common, the tax treatment of these tokens and operations involving them, including on VAT grounds, should be fairly assessed, and the working paper may have a significant impact on this assessment.
VAT on NFTs: The position of the EU VAT Committee
Withholding tax on sharing software in the cloud?
Modern tech solutions such as the software-as-a-service model, where users don’t have to maintain IT infrastructure on their own hardware, are becoming increasingly popular among taxpayers. But the fee for cloud solutions paid abroad may be subject to withholding tax if it is treated as a fee for use of an industrial device.
Withholding tax on sharing software in the cloud?
Difficulties for the acquirer: Adjustment of input VAT deduction for the merger year
On VAT grounds, a merger may prove challenging for the acquirer if either the acquirer or the target applies proportional input tax deduction in the merger year.
Difficulties for the acquirer: Adjustment of input VAT deduction for the merger year
Sale of shares in a real estate company: What about VAT?
The sale of shares in a real estate company is only the beginning, as the seller must face the VAT consequences of the transaction. Is the sale of shares in real estate companies treated differently under VAT than the sale of shares in other companies? Is this correct? And what can be done about it?
Sale of shares in a real estate company: What about VAT?
Tax proceedings and trust in public authorities
Issuing a permit to demolish a building, then blocking the demolition and demanding payment of tax on the undemolished building, while ignoring a request for an individual interpretation on the matter, hardly fosters citizens’ trust in the public authorities. It is also unlawful.
Tax proceedings and trust in public authorities
Will newly listed companies on the Warsaw Stock Exchange benefit from new tax regulations?
The Polish Deal introduces several solutions for Polish capital market participants, including corporate income tax changes for companies preparing to debut on the stock exchange. This amendment came into force on 1 January 2022.
Will newly listed companies on the Warsaw Stock Exchange benefit from new tax regulations?