Poland adopts deregulation proposals for corporate taxes

On Tuesday, Poland's Council of Ministers adopted a draft amendment to the Tax Code.

"The new regulations (...) are intended to reduce the burden on taxpayers and strengthen the protection of their rights and interests. After the change, interest for late payment during a tax or customs and fiscal audit will not be charged if the audit lasts longer than 6 months," wrote the government information centre CIR.

It added that the solution will free taxpayers from the financial consequences of prolonged tax and customs audits.

It was noted that currently, in the case of prolonged tax or customs audits, taxpayers are charged interest for the entire period of the audit.

"Protection against interest charges is only provided for in the case of prolonged tax proceedings if the decision has not been delivered within 3 months of the commencement of the proceedings," it was noted.

In addition, the government has adopted a draft amendment to the Corporate Income Tax Act.

"Thanks to the new regulations, holding companies will not have to submit a declaration of intent to take advantage of the CIT exemption with regard to income from the sale of shares in a subsidiary. The new solution will reduce the administrative burden. The draft is part of deregulation measures," wrote the CIR.

It added that currently, in order for holding companies to benefit from CIT exemption on income related to the sale of shares in a so-called domestic subsidiary, they must submit a declaration of intent to take advantage of the exemption at least five days before the date of sale.

"After the change, holding companies will not have to submit a statement of intent to take advantage of the CIT exemption for income from the sale of shares in a subsidiary," it was underlined.

Both drafts were submitted by the Minister of Finance.

jz/ han/