Two bills currently before Poland’s parliament would bring about sweeping changes to the country’s corporate tax rules. Some of the proposed changes were consulted on over the summer.

The legislation under discussion would establish an “Estonian-style” corporate tax regime. Under Estonia’s corporate tax system, tax is generally due only when profits are distributed. According to the Polish Ministry of Finance, the planned moves aim to encourage companies to retain profits and reinvest them into the economy, in order to help the country to recover from the COVID-19 crisis. In the tabled bill, the Polish Government has proposed to expand access to the concessionary tax regime, by enabling access for companies whose revenues do not exceed PLN100m (USD26.6m), up from PLN50m under the original plans.

If approved, the amendment to the corporate income tax act would enter into force from January 2021.

The second bill before Parliament would, among other things, raise the sales revenue threshold for access to the reduced, nine percent corporate income tax rate from PLN1.2m to PLN2m from January 1, 2021; and introduce tax under the corporate tax system for certain partnerships that do not disclose the identity of their partners, from 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

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