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

The Ministry of Finance launched consultations on clarifications to shifted profit tax and amendments to tax procedures

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 


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.