Poland Begins Corporate Tax Consultation
On July 31, 2020, the Polish Ministry of Finance announced the launch of a consultation on plans to introduce an “Estonian-style” corporate tax regime.
Under Estonia’s corporate tax system, tax is generally due only when profits are distributed. The Polish proposals are intended to encourage companies to retain profits and reinvest them into the economy, thereby helping the country to recover from the COVID-19 crisis.
The proposals are aimed at small- and medium-sized companies, and the Ministry previously said that the regime would be subject to certain restrictions on shareholdings, passive vs. active income, the reinvestment of profits, and revenue thresholds. If approved, the new corporate tax rules would enter into force from January 2021.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look