Poland: Consultations on clarifications to shifted profit tax, amendments to tax procedures

The Ministry of Finance on 20 June 2023 launched consultations on:

• Draft tax clarifications to the tax on shifted profits, including:
  • The taxable base and method of showing particular tax-deductible costs such as depreciation write-downs and debt financing costs
  • The conditions for applying the shifted profit tax to foreign entities, including the prerequisites for applying a reduced rate (the method of calculating the income tax rate lower than 14.25%), as well as examining the conditions for the transfer of 10% of the revenue received from the taxpayer by the intermediary
  • How failure to meet particular conditions to be covered by the shifted profit tax by foreign related entities must be documented by taxable persons.
  • The requirement of "achieving the majority of revenue (at least 50%) from passive payments from Polish companies"
• Draft amendments to the Polish tax law to simplify tax procedures, boost effectiveness of tax authorities, improve relations between taxpayers and tax authorities, and clarify provisions that raise taxpayers’ doubts, including:
  • Differentiating fees for issuing tax rulings and adjusting them to the type and size of the applicant, as well as introducing validity period for tax rulings
  • The possibility of applying simplified proceedings, in specified cases and at the taxable person’s request
  • The possibility of paying a taxable person’s tax by individuals from outside their immediate family, up to the amount of PLN 5,000 (currently PLN 1,000)
  • Introducing binding tax information

Read a June 2023 report prepared by the KPMG member firm in Poland