Today, the provisions amending the Polish CIT and PIT Act were published in the Journal of Laws.
Taxation of limited partnerships (spółka komandytowa) and other changes
The Act of November 28, 2020 introduces the following changes :
- limited partnerships and general partnerships having their seat or management board in the territory of the Republic of Poland, if the partners of the general partnership are not only natural persons and the company fails to fulfill its disclosure obligations will become CIT taxpayers;
- introducing a definition of a real estate company and establishing specific regulations for taxing these companies;
- increasing the limit of revenues entitling CIT taxpayers to apply the 9% tax rate from EUR 1.2 million to EUR 2 million;
- introducing the obligation to prepare a report on the implementation of tax policy (for some taxpayers);
- limiting the possibility of changing the depreciation rate for taxpayers who benefit from tax exemptions (e.g. in a special economic zone);
- limitation of the possibility of settling tax losses for some entities taking over the enterprise or its organized part;
- limiting the so-called abolition allowance – taxpayers will still be able to deduct the amount of the allowance from income tax, but in the amount not exceeding PLN 1,360;
- extension of the catalog of entities obliged to prepare local transfer pricing documentation;
- extending the scope of the content of local transfer pricing documentation regarding transactions with entities from “tax havens”.
The amending act was published as item no. 2123.
Publication of regulations took place before the end of November this year. It means that the rules for publishing changes to regulations before the next year, resulting from the guidelines of the Constitutional Tribunal, have been complied with. The changes will therefore be able to apply as early as next year.
Limited partnerships will become CIT taxable persons either from January or from May 2021.
The second amendment results from the Act of November 28, 2020 amending the Corporate Income Tax Act and certain other acts.
It introduces the so-called Estonian tax.
Let us remind you that this is a special tax regime that assumes taxation of income only at the time of distribution or allocation of funds for private purposes of partners.
In turn, the conditions for using this mechanism are, among others having the status of a capital company (limited liability or joint stock company), having shareholders in the form of only natural persons, or no shares / stocks in other entities.
After fulfilling all the conditions, it will be possible to postpone the tax collection date to the moment of payment of the company’s profits.
The amending act was published as item no 2122.