Poland: Weekly summary of tax developments

KPMG weekly tax review

KPMG weekly tax review

The KPMG member firm in Poland has prepared a weekly tax review including the following developments.

Application of general anti-avoidance clause (GAAR)

The Anti-Tax Avoidance Council recently published its first opinion holding that Article 119a of the Polish tax law (the tax avoidance clause) did not apply. The case related to the step-up of a trademark and real property made by entities belonging to the same group. According to the Council, the activities performed by the taxpayer brought a tax benefit in the form of reduced tax liability. However, the Council believed that the taxpayer’s actions were not primarily aimed at obtaining a tax advantage (the taxpayer put forward an expert opinion that showed that the main purpose of the transaction was to change the structure of the group together with obtaining additional financing for the investment). Because the existence of a business purpose was proved, the Council confirmed that the taxpayer’s activities were not of artificial nature.

50% restriction on the right to deduct input VAT on certain vehicles extended

The Council of the EU on 6 December 2022 authorized Poland to continue to apply the 50% restriction on the right to deduct input VAT on certain vehicles until 31 December 2025.

 

 

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.