Magdalena Zamoyska and Monika Grobelska of MDDP explain a series of amendments for 2023 that are expected to improve the accessibility and functioning of the Polish holding company model. A capital gains tax participation exemption for holding companies was introduced into Polish tax law under the so-called Polish holding company model from January 1 2022.…
The Polish Holding Company (PHC) is a solution that has been effective in the CIT Act since 1 January, 2022 and is intended to encourage investors to invest through Polish holding companies in other entities. In principle, the PHC allows for an exemption from taxation of dividend income paid by a Polish/foreign subsidiary to a…
Autumn has come and it has been followed by another changes in tax regulations, including the flat-rate income tax, or so-called withholding tax. Background to the changes The current version of the withholding tax regulations came into force on 1 January 2022. However, the fact that the legislator plans to amend the withholding tax rules…
The most important change concerning the minimum tax is the exemption of taxpayers from this tax in 2022 and 2023. For taxpayers whose fiscal year is different from the calendar year and starts before 1 January 2024 and ends after 31 December 2023, the exemption will apply until the end of that fiscal year. The…
The reform of Estonian CIT (sometimes called as “lump sum taxation”) under the Polish Deal, which began in 2022, allowed for a significant expansion of access to this form of taxation, e.g. by expanding the catalogue of entities eligible to apply Estonian CIT, reducing the flat rate on income, and abolishing the revenue limit. Thanks…
Taxpayers actively promoting their own products may, starting from 2022, make more deductions from their tax base. Tax credit for enhanced product sales is a kind of closing bracket for other deductions introduced with regard to taxpayers’ manufacture of their products. This time, the legislator touches upon the final element of selling one’s own products,…
Starting from 1 January 2022, two tax credits closely linked to the Initial Public Offering (IPO), or, in a nutshell, the stock market debut of a company, have been introduced into income tax laws. The first of the two IPO tax credits is aimed at corporate income tax payers deciding to conduct such an IPO.…
Starting from 1 January 2022, there a new deduction for the support of sports, culture and higher education and science, commonly referred to as a CSR (corporate social responsibility) tax relief. This is intended to support cultural, sporting and scientific activities more extensively by ensuring that the financial dimension of this support can be included…
Starting from 2022, the research and development deduction was extended and supplemented by a new solution, called the innovative employee deduction. The research and development tax relief entitles the taxpayer to deduct from the tax base the speific research and development costs. Taxpayers exempt from tax in special economic zone or on the grounds of…
Starting from 2022, taxpayers will be able to benefit from a new tax credit known as the consolidation tax credit or the acquisition tax credit. In a nutshell, it involves the possibility of deducting expenses incurred in connection with acquisition of company shares from the tax base. However, taking advantage of this modest tax credit…