September 9, 2020
Poland announces bill to amend corporate income tax rules
On 4 September 2020, Poland’s Council of Ministers announced a bill amending the corporate income tax (CIT) rules, which may have far-reaching consequences for various businesses in Poland. The proposed amendments cover a wide array of tax aspects including taxation of partnership, tax deductibility of debt financing costs, the application of tax amortization and transfer pricing rules. The exact scope and wording of the bill has not been published yet, but it is expected that the bill will still be adopted in 2020 and the changes will come into force on 1 January 2021.
While the first draft of the bill has not been published yet, the announcement lists a number of expected changes to the CIT Act which are aimed at:
The bill is expected to be disclosed to the public soon. The bill will also be discussed by the Council of Ministers and if approved will undergo further legislative process (that is, voting in the Sejm and Senat – the lower and upper chamber and signing by the President). It is anticipated that the bill will be signed and published by the end of November and will come into force as of 1 January 2021.
1. EBITDA: Earnings before interest, taxes, depreciation and amortization.
For additional information with respect to this Alert, please contact the following:
EY Doradztwo Podatkowe Krupa sp. k., Warsaw
EY Doradztwo Podatkowe Krupa sp.k., Wroclaw
Ernst & Young LLP (United States), Polish Tax Desk, New York