This is to remind you that on 30 September 2024 the time limit to file CIT-CFC return and pay tax due for 2023 expires.
Pursuant to art. 24a of the Corporate Income Tax Act of 15 February 1992, taxpayers with controlled foreign companies (CFC) are in general required to pay tax on CFC income of 19% of the taxable base. In addition, such taxpayers must keep records of controlled foreign companies and records of events at such companies.
A controlled foreign company is:
- an entity from tax havens,
- an entity from countries with which Poland or the European Union has not ratified an international agreement on the exchange of tax information,
- an entity with significant passive income,
- an entity with a sufficiently high disproportion between assets held and income earned
– in which the Polish tax resident company, individually or jointly with related parties or other Polish taxpayers, holds, directly or indirectly, a specified percentage of shares in the capital, voting rights or rights to participate in profits, or over which it exercises effective control.
Note that taxpayers with controlled foreign companies that are subject to taxation on their entire income in a member state of the European Union or of the European Economic Area and carry out substantial real economic activity in the country of their residency in the EU will not be required to pay tax on CFC income provided that appropriate documentation is collected.
If this issue pertains to your business and you are interested in our assistance, please contact us.
This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.