Amendment to the Corporate Income Tax

The Ministry of Finance conducted public consultations on the draft act amending the act on corporate income tax and certain other acts.

The proposed act aims to change the provisions on corporate income tax; based on an analogy, provisions in the personal income tax and flat-rate income tax; and other tax acts.

The draft act provides for, e.g.:

• postponing the entry into force of the provisions on the minimum income tax (2023) with a simultaneous modification of the current tax structure,
• repealing of the provisions on “hidden dividends”,
• changing the regulations on foreign-controlled entities (CFCs),
• changing the provisions on taxation with a tax on shifted income,
• changing the provisions on withholding tax (WHT),
• changes in settlement of debt financing costs in tax costs,
• easing the conditions for taking advantage of the exemption by a Polish holding company,
• clarifying the provisions on lump-sum taxation on company income.

AmCham together with other chambers gathered in the International Group of Chambers of Commerce has submitted a position paper for this draft act, which you will find here.