First draft of GloBE implementation act submitted in Poland
Council Directive (EU) 2022/2523 of 15 December 2022 seeks to ensure a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union. The Polish Ministry of Finance has published for consultation a draft of an act implementing into Polish legal system its objectives. The act shall enter into force on January 1 2025, although it provides an opportunity to apply some provisions to act retroactively.
Monika Dziedzic, partner, tax adviser and attorney at law and Łukasz Kumkowski, senior manager, tax adviser and attorney at law are discussing in the new article for International Tax Review the challenge that arises for the Polish legislature with the declared implementation, as it seeks to maintain the country’s appeal as the favorable investment location.
As the result of introducing the new provisions, Polish entities may become liable to the following top-up taxes:
- A global top-up tax that will apply primarily to ultimate parent entities of international groups located in Poland;
- A domestic top-up tax, which is intended to be the Polish qualified domestic minimum top-up tax (QDMTT); and
- A tax on undertaxed profits.
Implementation of GloBE requirements remains a threat to the Poland’s competitiveness as a location for new investments.
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#MORE in Monika Dziedzic and Łukasz Kumkowski article for International Tax Review >>