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| Bartosz Głowacki |
After years of discussion, Poland started to tax gains of
non-residents on real estate companies, i.e. gains on shares,
interest in tax transparent partnerships and collective
investment vehicle units if at least 50% of assets of that
entity consist of Polish real property.
In line with the law, the real estate assets test has to be
made on the last day of the month proceeding the month the
disposal took place, which gives the taxpayers some
flexibility.
Also, the gains of non-residents on publicly traded shares
will be taxable in Poland.
However, the applicable tax treaty may change the above
treatment of gains on real estate companies and publicly traded
shares.
Separately, the corporate income tax (CIT) exemption
applicable to collective investment funds has been slightly
narrowed. Now, Polish closed-end investment funds are no longer
exempt, but this is only the case with regards to income earned
from interest in tax transparent partnerships, income from
loans granted to, and securities issued by, such partnerships.
Similar limitations apply to CIT exemptions of EU/EEA seated
collective investment schemes. The tax exemption applies to all
other sources of income including interest, capital gains and
dividends, making this form of activity still very
competitive.
The new corporate taxpayers, as well as most of the small
ones, are subject to 15% CIT instead of the standard rate of
19%. A taxpayer is recognised as small if its previous
financial year's revenue (VAT inclusive) did not exceeded
€1.2 million ($1.3 million).
Contribution in kind of assets other that an ongoing concern
is now taxed as a sale. Before the amendment, the contributor
was taxed on the face value of shares received in exchange for
the contribution (less the deductible costs). Now, the market
value of assets transferred to a company constitutes a taxable
revenue and less the underlying costs is taxed with standard
19% CIT rate.
Some defined R&D qualifying costs give the right to
additional 30% or 10% deduction from taxable basis.
Formal letters of practice (tax rulings), including those
issued in the past, will give no protection if they relate to
tax avoidance challengeable on the grounds of the general
anti-avoidance rules (GAAR).
There are many new requirements for transfer pricing
documentation. VAT law was also significantly amended.
Bartosz Głowacki (bartosz.glowacki@mddp.pl)
MDDP
Tel: +48 22 322 68 88
Website: www.mddp.pl