Publications

Business Law Regulations Taxes

Introduction of the Equalization Tax Act

Introduction of the Equalization Tax Act As of early 2025, the Act of November 6, 2024, on the Equalization Tax for Constituent Entities of International and Domestic Groups (hereinafter: “Equalization Tax Act”) has come into force. This legislation is a response to Council Directive (EU) 2022/2523 on the global minimum tax. The primary objective of…

Law Personal Income Tax Tax advisory

Do Spouses Who Are Founders of a Family Foundation Qualify for PIT Exemption?

In an individual ruling issued on June 25, 2024 (0112-KDIL2-1.4011.114.2024.3.JK), the Director of the National Tax Information Service (KIS) confirmed that spouses who jointly establish a Family Foundation and contribute assets to it are fully exempt from personal income tax (PIT) on benefits paid from the Foundation to them. Background of the Issue Prior to…

Law Obligations Regulations Tax advisory

Property Tax Changes – No Revolution, But as Usual

Property tax has always been a tricky area for taxpayers. Ambiguous regulations and imprecise definitions, such as those for buildings and structures, often make it difficult for taxpayers to accurately determine what exactly is subject to taxation. This can result in costly penalties, and disputes with tax authorities often end up in court. Draft Changes…

Law Regulations Taxes

How to Reduce Taxes with Hypothetical Interest? What Are Hypothetical Interest?

When a company finances its operations using external sources (e.g., a loan or credit), the interest paid on these sources can generally be deducted as business expenses. However, if a company decides to use its own profits or capital contributions for this purpose, it can calculate so-called hypothetical interest, which can ultimately help reduce its…

Business Law Regulations

Definition of Controlled Transaction

The concept of a controlled transaction, defined in Article 11a, Section 1, Point 6 of the Corporate Income Tax Act (and Article 23m, Section 1, Point 6 of the Personal Income Tax Act), presents taxpayers with significant interpretative challenges. The statutory definition of controlled transactions characterizes them as “actions of an economic nature, identified based…

Business Law Regulations Tax advisory

CbC Notification – Attention to the Approaching Deadline

This is the final call to fulfill one of the reporting obligations within the area of transfer pricing—submitting the CbC-P notification, which pertains to the obligation to provide information about the corporate group. Subject Scope The obligation to submit the CbC-P notification applies to entities that are part of multinational corporate groups, provided that their…

Business Law Regulations Tax advisory

Homogeneity of Controlled Transactions in Transfer Pricing

Meeting transfer pricing obligations is a time-consuming process, so we encourage early planning of tasks in this area. One of the first issues that taxpayers must address is identifying homogeneous transactions. Defining a controlled transaction as homogeneous is a crucial element in determining documentation obligations for transfer pricing. Article 11k, Section 5 of the Corporate…

Business Law National e-Invoicing System Regulations

Have Entrepreneurs Gained or Lost from the Postponement of the KSeF?

The echoes of the surprise decision by the Minister of Finance to delay the mandatory implementation of the National e-Invoice System (KSeF), which was scheduled to begin on July 1, 2024, are still being heard. It turns out that, at this stage, the system contains a significant number of technical errors that could undermine the…

Business Law National e-Invoicing System Regulations

Mandatory KSeF Implementation Postponed

On January 19, 2024, during a press briefing, Finance Minister Andrzej Domański announced that the implementation of the mandatory National e-Invoice System (KSeF) for entrepreneurs would not be possible this year. It is worth recalling that the new regulations, which were set to take effect on July 1, 2024, would have required VAT-registered taxpayers to…

Business Law Regulations Tax advisory

Non-Financial Reporting: A New Obligation for Entrepreneurs

On December 14, 2022, the European Parliament and Council Directive (EU) 2022/2464 was adopted, expanding the scope of entities required to submit non-financial information. The overall goal of this directive is to ensure that businesses contribute to sustainable development and the transformation of economies and societies by identifying companies that negatively affect human rights and…