The Polish Deal Calculator

The legislation package of the Polish Deal includes over 100 new tax solutions, which have so far been included in as many as 26 amended statutes. They are to come into force on 1 January 2022, and therefore every entrepreneur should review their tax calculations and, taking into account the new forms of taxation, choose the most advantageous option.

New tax obligations for entrepreneurs

1 January 2022 will mark the entry into force of the recently added Art. 24ca of the Corporate Income Tax Act, which introduces a new kind of CIT, the so-called minimum tax. Taxpayers will for the first time calculate and pay the minimum tax on the basis of CIT-8 returns submitted for 2022 in 2023.

Another regulation provides for the imposition of tax on entities resident in Poland in relation to the so-called shifting of income. The rate of this tax is likely to be 19%, and ‘shifted income’ will include the costs incurred directly or indirectly for the benefit of a related entity of the company or partnership.

What is more, in the current bill, costs excluded from tax-deductible costs have been extended to artificial costs that constitute the so-called hidden dividend (the draft Art. 16(1)(15b) of the CIT Act). The proposed catalogue of costs does not literally list expenditure on intangible services. It should be mentioned, however, that if a taxpayer pays to related entities remuneration on account of the abovementioned intangible services or fees and payments for the use of, or the right to use, intangible fixed assets, where the amount of this remuneration depends on the profit earned by the entity, the expenditure incurred may be treated as the so-called hidden dividend. As a result, this expenditure will automatically be completely excluded from the company’s or partnership’s tax-deductible costs.