The Finance Ministry has recently published draft Capital Market Development Strategy ("CMDS") which is open for public consultations as of 28 February 2019. CMDS is a development plan for the Polish capital market for years 2019 to 2023 designed to increase its competitiveness, including through tax preferences.

Some of the projected tax changes are described below:

  • Withholding tax exemption for interest on Euro-bonds traded on regulated markets or multilateral trading platforms (ATS) in EU and elimination of barriers in relation to obligation to submit certificate of residence for each bondholder.
  • All IPO expenses to be deductible generally up to 125% of expenses incurred, subject to a cap.
  • Personal income tax exemption for gains from sale of employee shares, subject to a cap and only on condition the sale occurs after a minimum holding period.
  • Preferential treatment of development bonds.
  • Option to net off capital gains and losses on investments in financial instruments (subject to certain exclusions, e.g. for cryptocurrencies).
  • Dividend tax reduced from 19% to 9% for capital investments held for longer than 36 months, subject to a cap.
  • Bond interest to be taxed in such a way as to ensure the same treatment of investors on primary and secondary markets.
  • Tax administration for issuers to be centralised in special-purpose tax offices.
  • Removal of different treatments for bonds issued before 2015 vs. after 2015 for entities that operate securities accounts or omnibus accounts.

We will keep you up-to-date on further developments in this area.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o. 

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ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

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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.

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