On 30 November 2020, the act amending the Corporate Income Tax Act was published in the Polish Journal of Laws and thus entered into force. The amendment introduces compliance of limited partnership having their management or registered office in the territory of Poland as a corporate income tax taxpayer. With regard to general partnerships, corporate taxation will be imposed in the case when at least one partner is not natural person or all partners having profit share are not disclosed to the tax authorities.

The definition of real estate company has been introduced that it is a company (it can also be an investment fund) that holds assets consisting mostly (50%) of real estate in Poland, taking into account the market value of the assets. Under the new rules, income from the sale of shares in a real estate company in Poland will be taxed for another year after the loss of the status of a real estate company.

From 1st January 2021 following entities will be required to publish a report on the implementation of the tax strategy on their website. (i) tax capital groups (ii) taxpayers whose revenues in the tax year exceeded the equivalent of EUR 50,000,000 (iii) real estate companies. The report will have to be published by the end of the twelfth month following the end of the tax year.

As part of the package of changes concerning transfer pricing, the provisions on transactions with tax havens are also modified. The main changes in this area concern: (i) extending the scope of transaction value estimation, in particular to non-controlled transactions, if the beneficial owner has a tax residence in the tax haven. (ii) increasing the value of the transaction amount obliging to prepare transfer pricing documentation (Local file) from PLN 100,000 to PLN 500,000. Starting from 2021, it will not be possible to offset the losses of the acquiring entity with the income of the acquired entity, enterprise or organized part of the enterprise. The amendments also increase the revenue threshold for the reduced 9% corporate tax rate for small taxpayers from EUR 1.2 million to EUR 2 million and for the simplified flat-rate tax from EUR 250,000 to EUR 2 million.