The solution called a “Polish Holding Company” (PHC, Polska Spółka Holdingowa) was first introduced to the Polish legal system in 2022 and is meant for Polish commercial companies whose structures include Polish or foreign subsidiaries. Establishing a Polish Holding Company makes an interesting option for investors who are interested in investing their capital in Poland.
The top highlights of operating as a Polish Holding Company are tax exemptions: of income from the sale of shares of its subsidiary company, and of income from dividends received from its subsidiary company. The abolition of dividend tax and capital gains tax also applies to situations where the dividend comes from entities outside the EU/EAEU/Switzerland (except for tax havens).
Resorting to this form of running business proves cheaper than running a foreign company. Furthermore, it lowers the risk that tax preferences may get questioned on the basis of tax avoidance regulations.
The first requirement in order for an entity to be considered a holding company within the meaning of the CIT Act, is to run an actual business activity. The second important requirement to be able to be considered a PHC is that the holding company has held ownership of at least 10% of shares in a subsidiary company for at least two years.
As of 1 January 2023, choosing this company model proves even more attractive since the previous 95% dividend taxation exemption has been replaced with a full tax exemption of 100%. Moreover, starting from 2023, simple joint-stock companies can also classify as Polish Holding Companies (in addition to the previously-eligible limited liability companies and joint-stock companies). These changes enable a wider group of CIT payers take advantage of the PHC institution.
Our MDDP Outsourcing experts are a hallmark of warranty on providing specialized accounting services for any Polish Holding Company and its subsidiaries. We are very pleased to offer a range of comprehensive accounting services related to any PHC, including solutions which are specific to this very model.
Our non-exhaustive offer includes:
In our daily work, we utilize modern technologies and enable our clients to have a remote access to our services. This solution ensures that while dealing with us, any Polish Holding Company always maintains full control over the documentation and accounting processes related to its organization. We are experienced in working with various systems, and we can either use our accounting software or work with a system implemented in a PHC. Furthermore, we have an Electronic Document Workflow system to support the processes in the Company, regardless of what accounting system it uses.
Obtain a guarantee that the accounting service at your PHC is of the highest standard. Send a request for a quote now.
MDDP Outsourcing Experts remain at your disposal. We will be glad to answer any inquiries regarding our services, offer quotations and other issues related to our company.
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