Tax for daughter

At the end of June this year, Parliament passed an amendment to the Act about PIT and CIT. Important for companies change is the taxation of income obtained by foreign companies controlled. Tax will be paid not by the company, but by the Polish entity holding shares in the company. The legislature intends thus to introduce into the Polish legal mechanism to combat tax fraud involving the use in business offices of countries using preferential taxation.

Foreign company controlled considered: (1) entity, whose office is in a country applying harmful tax competition, (2) entity, office is in the country, which Poland doesn’t have an agreement on the avoidance of double taxation, (3) entity, in which the Polish taxpayer holds more than 25% shares, and that company achieved mainly passive income. The Act contains certain exemptions subjective.  The amendment takes effect from January 1st next year.








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