Poland: Draft bill includes amendments to “Polish Deal” corporate income tax measures

The amendments would become effective 1 January 2023.

The amendments would become effective 1 January 2023.

A draft bill amending corporate income tax provisions enacted as part of the “Polish Deal” was submitted on 25 August 2022 before the Lower House of the Polish Parliament for the first reading—which will take place during the seating on 2 September 2022.

The amendments would become effective 1 January 2023. 

The Polish Deal refers to legislation amending the income tax laws affecting corporations and individuals, as well as the value added tax (VAT) and other tax legislation, which was passed on 29 October 2021 and is generally effective as of 1 January 2022. Read TaxNewsFlash

The government on 28 June 2022 published proposed legislation that included the amendments in the draft bill. Read TaxNewsFlash

The key changes under the draft bill include:

  • Modification and postponement of minimum income tax provisions by two years (instead of the previously proposed one-year postponement)
  • Repeal of hidden dividend regulations
  • Amendments to the withholding tax regime
  • Repeal of the requirement to follow the arm’s length principle and satisfy the documentation obligation for indirect tax haven transactions

Read an August 2022 report prepared by the KPMG member firm in Poland

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.