Hosting services and the withholding tax

Administrative courts are adamant to the tax authorities in terms of the classification of hosting services – on August 25, 2022, the District Administrative Court in Krakow issued a judgment with reference number I SA/Kr 101/22, in which it agreed with the taxpayer, stating unequivocally that fees for hosting services are not subject to the

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Limitation of CIT advances during the tax year

Corporate income tax payers are required to pay monthly advance payments for tax (Article 25 (1) of the CIT Act). Basically, one can pay them as so-called “actual” advances (we calculate the tax on the income earned since the beginning of the tax year minus any advances paid so far or the so-called “simplified” advances

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Legislation and practice – August in taxes

We present below a short summary of the most important changes in tax law and tax practice in August: the Council of Ministers adopted and submitted to the Sejm a draft amendment to the CIT Act and other tax acts. The project assumes, among others postponement and amendment of the “minimum” tax regulations, elimination of

End of documenting indirect “tax heaven” transactions?

There are significant chances to eliminate the provisions on the documentation obligation in the field of “indirect tax heaven” transactions. Let us remind you that it is about the obligation to prepare transfer pricing documentation in transactions with unrelated entities, if their beneficial owner is a “tax heaven” entity. This regulation has been repeatedly criticized

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Tax strategy in practice

2022 will be the second year in which some taxpayers will be required to publish information about the tax strategy implemented in this period. Who does this obligation apply to? CIT taxpayers whose revenue in the preceding year exceeded the PLN equivalent of EUR 50 million and tax capital groups. In practice, some taxpayers already

Legislation and practice – July in taxes

We present below a short summary of the most important changes in tax law and tax practice in July: the Decree amending the decree on goods and services for which the tax rate on goods and services is lowered, and the conditions for the application of reduced rates was published in the “Journal of Laws”

Extending the validity of WHT statements

The Ministry of Finance has published a draft regulation which is to extend the validity of statements (WH-OSC) for the purposes of withholding tax collection. As a reminder, if payments for dividends, interest and royalties to related entities exceed the threshold of PLN 2 million in the tax year, tax must be charged at the

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Settlement – income and costs

Disputes between entrepreneurs are common in business activities. Some of them end at the pre-trial stage, e.g. by concluding a settlement. What are the consequences of concluding such a settlement in terms of income taxes? Let us consider it on the example of a settlement in which the entrepreneur infringing someone else’s copyright undertakes to

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Tax interpretations and MDR

As a part of the counteractions against the erosion of taxation and the shift of profits, OECD developed the so-called “BEPS” package, one of the elements of was a system for informing tax authorities about tax planning mechanisms – Mandatory Disclosures Rules. This mechanism was reflected in the Council Directive (EU) 2018/8221 of May 25,

Selected details of CIT amendments

The draft amendment to the CIT Act has been published on the website of the Government Legislation Center – specifying the provisions of the previously commented assumptions: Below we present to you the important issues that have been clarified in this project (in relation to the assumptions). “Tax heaven”-related transactions The draft provides for very

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