We have reported earlier (see our blog post form August 19th, 2021) on plans to change the definition of Polish-based management board, as originally drafted in the Polish Deal legislative package. In accordance with that original definition, a Polish tax resident having full tax liability in Poland included not only an entity established in Poland but also a foreign entity having a Polish resident as member of its managing or control body.

The Polish Deal amendments recently passed by the Sejm change this definition. Now a taxpayer will have its management in the territory of Poland also when its current affairs are managed in Poland in an organised and continuous manner, especially:

  1. under a contract, decision, judgment or other document regulating its incorporation or operations, or
  2. under powers of attorney, or
  3. by way of existing relations within the meaning of Article 11a(1)(5) of the CIT Act.

The proposed law has just been adopted by the Sejm so changes to it are still possible at this stage. We will keep you up-to-date with the progress of this legislation.

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.