Starting professional activity in Poland—what about taxes and social insurance?

Employment contract, contract of mandate, or sole proprietorship (individual business activity): these are the most common forms of cooperation with individuals in Poland. In this article, we explain the tax and social insurance burdens for individuals working under an employment contract and contract of mandate. In the next article, we will discuss different forms of business income taxation.

Amendments to the Inheritance and Gift Tax Act

The set of parties who can benefit from inheritance and gift tax exemptions will expand. The exemption will now apply to persons who are or have been in a foster family, a family-style children’s home, a care and educational institution, or a regional care and therapeutic institution, as well as persons forming a foster family, running a family-style children’s home, or working with children in a care and educational institution or a regional care and therapeutic institution.

Tax interpretations on the obligation to prepare transfer pricing documentation

Although the definition of a “controlled transaction” has been introduced into the PIT Act and the CIT Act, taxpayers (and lawmakers) still have doubts which events require preparation of transfer pricing documentation. Today, we write about transfer pricing documentation in the case of contributions to share capital, share redemptions, and dividends.

Securing the payment of taxes may protect against exclusion

If tax arrears are a ground for exclusion under the procurement documentation, exclusion can be prevented by making payment or entering into an agreement with the tax authority. It is worth considering whether providing voluntary security would be an effective way to prevent exclusion.

Taxation of real estate companies

On 30 September 2020, an extensive set of proposed amendments to tax laws was submitted to the Polish Parliament. We have already written about how general partnerships and limited partnerships are to be taxed. In this article, we describe the planned form of taxation of income from the sale of real estate companies and related doubts.

Planned rules for imposing corporate income tax on limited partnerships from 2021

The guidelines for imposing corporate income tax on limited partnerships and some registered partnerships have now been stated with more specificity. On 16 September 2020 a draft Act Amending the Personal Income Tax Act, the Corporate Income Tax Act, the Act on Flat-Rate Taxation of Certain Income of Natural Persons, and Certain Other Acts (draft no. UD126) was published on the website of Poland’s Government Legislation Centre. The draft and the extensive justification for the proposal provide details of the rules for taxation of limited partnerships from 2021 forward. It should be borne in mind that these rules may change during the course of the legislative process.