Closing Tax Year in Poland - CIT key issues for international tax managers

The goal of this webcast would be to discuss from the wider, yet practical, perspective the most important CIT topics arising in Poland.

Topics that are going to be presented are:

1. WHT– important issues

We will discuss new approach presented by Ministry of Finance and Polish tax authorities / administrative courts to the topic of WHT benefits’ application in Poland (lower rates, non-taxation and, especially, exemptions).

The mentioned outlook is very controversial and may have practical implications on the Polish tax remitters’ right to apply WHT exemptions. We will also present the ways to secure tax remitter’s WHT position in Poland and practical implications of the possible solutions in this respect.
 

2. Minimum income tax (regulations different from Pillar 2)

From the beginning of 2024, the so-called 'minimum tax' provisions will come into force. This tax is intended to reduce the 'foreign CIT gap', which arises through the transfer of profits to other countries. In case where Polish entities will generate tax loss or will achieve low profitability (below 2%) in the given tax year, additional tax will be due in Poland.

There are 2 options for calculating the minimum income tax from which the taxpayers can choose from. This will also be covered during our discussions.
 

3. Tax on shifted profits

The regulation on the tax on shifted profits introduced the obligation to pay an additional tax in the amount of 19% of the tax base (separate from CIT settled under general rules) in case of certain type of so-called passive payments made by a Polish tax resident to a foreign related entity, which constitute tax deductible costs of the Polish taxpayer.

During our webcast we will discuss types of payments that are covered by those regulations, their application in practice and doubts that arise in this respect. This topic is especially important when Polish entity pays for royalties, intangible services or interest.

4. ATAD2 (hybrid mismatches)

Regulations of ATAD2 in Poland forces Polish CIT taxpayer in certain situations to exclude from tax deductible costs expenses which generates so called: (i) double deductions, or (ii) deductions without inclusion. We will discuss shortly the practical approach to those provisions in Poland and indicate situation where further analysis should be executed in order to secure the tax deductibility.

Our webcast would be condensed, informative and to the point, therefore we plan that it shall last no longer than 1h.

The language of the presentation and discussion is English. Participation in the webcast is free of charge.