Polish limited joint-stock companies fulfill the definition of a capital company

By judgment dated 22nd April 2014, passed in case C-357/13, the Court of Justice of the European Union responded to the question of the Regional Administrative Court in Cracow on the nature of the limited joint-stock company in the light of the directive regarding indirect taxes on the capital raising.

In the above judgment, the Court held that in the light of Directive 2008/7/WE the polish limited joint-stock company should be considered as a capital company.

ECJ judgment is significant in the context of art. 2 point 6 letter c) of the Act on tax on civil law transactions, defining the conditions for exemption from the obligation to pay the PCC tax on the restructuring of capital companies. Directive 2008/7/WE applies from 1st January 2009, therefore, in light of the judgment of the ECJ from that moment there has been no basis to charge the PCC tax on restructuring of capital companies with the participation of a limited joint-stock company.

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