In Poland, the implementation of the country’s new ‘Estonia style’ corporate tax system continues apace, with the publication of new forms to be completed by companies seeking to avail themselves of the regime.
On January 1, 2021, Poland introduced a new tax regime for companies whose revenues do not exceed PLN100m (USD26.6m), which provides for an exemption from tax on reinvested profits.
On December 10, 2020, the Ministry released draft guidelines on the new regime, in Polish, including step-by-step instructions, over more than 120 pages, on the process for entering, exiting, and complying with the regime.
And earlier this month, the Polish Government published in its Journal of Laws a regulation including two forms that must be filed to opt into the regime, namely to request to join the regime and to disclose details required regarding the company’s shareholders.
For more information on this, … Read More »
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 … Read More »
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
Free zones are presently all the rage (including in South Africa). So much so that Poland has decided to go the whole hog and transform itself into one big, country-sized special economic zone.
The fact that the world seems to have lost count of the number of its free zones tells you something about the rate at which they have proliferated in the post-World War Two era, and particularly in the last couple of decades. According to the World Freezone Atlas published in 2010, there were 1,735 free zones, dotted all over the globe. However, an OECD study published two years previously suggested that there were as many as 5,000 free zones. Perhaps the true figure is somewhere in the middle – something like 3,500 perhaps, as the World Trade Organization suggests.
The actual answer, I think, depends very much on your definition … Read More »