The lower chamber of the Polish Parliament (Sejm) approved a bill amending both the corporate income tax act and personal income tax on 22 July 2016.The following legislation and regulation changes will come into effect on 1 January 2017.
- Small corporate taxpayers (gross sales reported for the previous year are less than €1.2 m) and corporate taxpayers origination business activities may benefit from a lower tax rate of 15% but the standard CIT rate is 19%.
- According to the bill, a share for share exchange shall not benefit from the deferment of taxation where one of the major goals is tax avoidance. If these transactions is not completed due to valid business reasons, then it is shall be deemed as tax driven.
- Beneficial owner clause where to meet a beneficial owner test would also be a requirement for applying the withholding tax exemption for interest and royalties paid to EU and European Economic Area companies.
- From January 1, 2020, a special hydrocarbons tax on mineral extraction of up to 25% on the difference between turnover and expenses will apply; this rate will be in addition to the corporate income tax. In addition, extraction taxes of either 1.5% or 3% (depending on the location of extraction) for gas and either 3% or 6% for oil (depending on the location of extraction) will also take effect from 2020.
- In August 2016, the Council of Ministers adopted a bill introducing new research and development (R&D) tax incentives aimed at stimulating the development of R&D activities which proposes to extend the three year carryforward to six years.
