On 12 August 2020, the Minister of Finance published a proposed law to amend the corporate income tax act and certain other acts (the Draft). The Draft provides for introduction of two new optional taxation rules:
- fixed tax on company income, which defers the taxation of income until profits are distributed (the Fixed Tax),
- special investment fund which allows for earlier settlement of amortisation of tangible fixed assets (the Fund).
In order to use the Fixed Tax or write-downs to the Fund the taxpayer must meet a number of requirements which in practice make this option unavailable to many entities. The requirements include:
- activities must be carried out as a limited liability company or a joint-stock company with shareholders being natural persons only,
- specified investment expenditure must be incurred,
- income may not be higher than PLN 50 million,
- financial income must be lower than 50% of total income,
- the company must have at least 3 employees,
- no shares in another company may be held.
The Draft provides that the new regulations will take effect already on 1 January 2021. The Draft is currently undergoing the intra-cabinet approvals process. We will keep you up-to-date on the progress of this legislation.
If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
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This Newsletter 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.