Poland’s President Andrzej Duda has signed into law on, 15 November 2024, the Act on Equalization of Constituent Units of International and Domestic Groups for the Pillar Two global minimum tax in accordance with the Council Directive (EU) 2022/2523 of 14 December 2022.
This follows after Poland’s Senate (upper house of parliament) approved a legislation to implement Pillar Two global minimum tax in Poland after the draft law was submitted to Poland’s Sejm (lower house of parliament) for consideration.
The Act includes the introduction of the Pillar Two income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) to ensure a minimum corporate tax of 15% for large multinational (MNE) groups with annual consolidated revenue of at least EUR 750 million in at least two of the preceding four fiscal years. The rules apply to all domestic and international groups with a parent company or subsidiary in an EU member state. The bill also proposes implementing a qualified domestic minimum top-up tax (QDMTT) for members of in-scope groups and certain safe harbors.
The Act is set to take effect on 1 January 2025.
However, a transitional provision allows a group to apply the law’s provisions to the tax year beginning after 31 December 2023 but within 31 December 2024.
The Act’s provisions will take effect starting on 1 January 2024, with IIR and QDMTT applying to the tax year after 31 December 2023.
Groups opting for early application of the Act must declare between 1 March and 30 May 2026.
