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Recent tax updates

Poland

2014 has seen a number of updates to Polish tax legislation. Taxand Poland takes a detailed look at the recent changes to tax law most likely to affect businesses operating in Poland.

Return of contributions to a partnership is not a taxable revenue

  • In the CIT Act there is no direct provision on the tax consequences of a partial refund of a contribution made previously by the partner to the limited partnership. As a result partial refund of the contribution made to such a company will not generate taxable income. This decision is consistent with the current approach of administrative courts that is beneficial for the taxpayers. It allows to withdraw from investments in a tax-efficient way, as well as confirming that it is unacceptable to use an analogy against the taxpayer.

Integration meetings, holiday events, trips and training do not generate income for PIT purposes

  • Free of charge services should be considered taxable income only if the benefit is for the employees. Benefits such as integration meetings, holiday events, trips and training are primarily in favour of an employer. From the employees perspective participation in these events is not mandatory and may also be viewed as burdensome. As a result they should not constitute an additional income for the employees. 

Discover more: Recent Polish tax updates


Your taxand contact for further queries is:
Andrzej Puncewicz
T. +48 22 324 59 49
E. Andrzej.puncewicz@taxand.pl

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Taxand's Take

These issues will affect multinationals and nationals over a variety of sectors. Companies operating in Poland should take note and respond accordingly.

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