In the area of corporate income tax, the changes implemented by the Polish Deal include:
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amendments to the transfer pricing rules with regard to:
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definition of related entities – the previously used term “company without legal personality” has been replaced by “company not being
a legal person”,
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transfer pricing adjustments,
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the financial safe harbour mechanism – the period in which a taxpayer will be able to take advantage of this institution will be the tax
year, the moment for which a loan (credit, bond) agreement should comply with the financial safe harbour conditions with regard to
interest rates has been specified,
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local transfer pricing documentation,
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the extension to 14 days of the deadline for the taxpayer to submit local documentation when requested by the tax authority (instead
of the current 7 days),
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elimination of the statement on preparation of transfer pricing documentation as a separate document and moving it, with its amended
content, to the transfer pricing information (TPR form),
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signing the transfer pricing information – as a rule, the information is signed by the head of the entity within the meaning of the
Accounting Act, however, if the entity is managed by a multi-person body – by one or more persons authorised to represent it. In
addition, the amended regulations have allowed the transfer pricing information to be submitted by an attorney who is an advocate,
legal adviser, tax adviser or statutory auditor, and a proxy (acting in accordance with the principles of representation);
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the introduction of the so-called holding regime, including the definition of a holding company and a subsidiary, as well as the inclusion of
CIT exemptions introduced by the holding regime in anti-abuse regulations;
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remodelling the withholding tax procedure by, inter alia, implementing additional restrictions/conditions that must be met in order for
remitters to apply reduced withholding tax rates or exemptions from withholding tax. The material scope of payments subject to the pay
and refund mechanism has been narrowed (in relation to the provisions implemented in 2019) to income of a passive nature (e.g. interest,
copyright, trademarks and dividends). The same applies to the personal scope, which has been narrowed down to non-residents who are
related parties of the payer or issuer (the relationship is determined on the basis of transfer pricing rules). The total annual amount of
disbursements that are conditional on meeting additional requirements (PLN 2 million) is left. The existing exemption opinion is replaced
by a preference opinion. The definition of beneficial owner has been modified. The legislator has allowed the payer to use a copy of the
taxpayer’s residence certificate;
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modification of the rules on lump-sum taxation on income of capital companies (the so-called Estonian CIT), aimed at expanding the
catalogue of entities entitled to opt for this taxation, as well as relaxing the necessary conditions to be met;
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extension of the catalogue of capital gains income;
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the introduction of reliefs for entrepreneurs incurring costs in connection with the employment of employees in research and development
activity, test production of a new product or its market launch and the increase of revenues from product sales;
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introducing a robotisation allowance;
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enabling simultaneous use of the R&D tax credit and the IP Box preference;
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the introduction of a tax credit for taxpayers supporting sports, cultural activities and higher education and science;
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the introduction of relief on the costs of Initial Public Offerings (IPOs) for new entrants;
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promoting cashless transactions by introducing an income tax deduction for the purchase of a payment terminal or fees for the use of
such a terminal;
