On 6 April 2023, the Government Legislation Centre published an on-line draft of a law to amend the Accounting Act and certain other acts (“Proposal”).

The Proposal is designed to transpose Directive (EU) 2021/2101 of the European Parliament and of the Council of 24 November 2021 amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches.

The new law will impose a duty to issue an income tax report (“Report”) on all large multinational enterprises established or having their place of management in the territory of the Republic of Poland and on non-EU multinational enterprises carrying on business activities in the territory of the Republic of Poland through branches or subsidiaries.

In accordance with the Proposal, the Report must be prepared, published and made accessible by:

  1. ultimate parent undertakings whose revenues reflected in their annual consolidated financial statements exceed PLN 3 500 000 000 for each of the last two financial years;
  2. stand-alone undertakings whose revenues reflected in their annual financial statements exceed PLN 3 500 000 000 for each of the last two financial years.

To publish a Report and make it accessible, the management of the undertaking shall within 12 months from the balance sheet date:

  1. file the Report to the relevant court register, together with any refusal to sign the Report or any statement, or refusal to state, that the Report is in compliance with statutory law; and
  2. post the Repot on the undertaking’s website, with the Report to remain accessible on the website for at least 5 years.

Subject to certain conditions set out in the Proposal, a Report relating to the ultimate parent undertaking or stand-alone undertaking shall be published and made accessible for each financial year by:

  1. a subsidiary, and
  2. a branch.

The Report is to be prepared at at the balance sheet date and comprise such information as:

  • a description of the nature of the undertaking’s activities;
  • the number of employees on a full-time equivalent basis;
  • revenue, including transactions with related parties;
  • the amount of profit or loss before income tax;
  • the amount of income tax paid or accrued;
  • the amount of accumulated earnings.

The law is expected to enter into force 14 days after publication. Currently the Proposal is undergoing an intra-cabinet consultations process. We will keep you updated on 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.