PLANS TO INTRODUCE PREFERENCES FOR CAPITAL MARKET INVESTMENTS

 

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. 

Bałtyk Building, 13th floor

ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

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Al. Jerozolimskie 81

02-001 Warszawa

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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