Exit tax

Introduction of exit tax to the Polish tax system results from an obligation to implement the Directive (UE) 2016/1164, adopted in 2016. The mentioned directive establishes provisions in order to prevent tax avoidance practices, which may have indirect impact to functioning of the internal market, so called the ATAD Directive.

A crucial assumption of the exit tax is taxation of unrealized profits in connection with moving one’s assets to another country, also those which are part of a permanent establishment.

The tax is also due in case of change of the residency status of a taxpayer, which deprives Poland from taxation of income from sale of the individual’s assets. This is not required by the ATAD Directive – the Polish law in this issue goes beyond the requirements of the ATAD Directive and implements taxation of natural persons, who change their residency.

In accordance with the provisions introduced as of …

Changes of the corporate and personal income tax law in Poland in 2019

There are some revolutionary changes of the corporate and personal income tax law in Poland, which might influence Your business. The President of Poland signed a bill amending the income tax acts. Some regulations are valid as of the beginning of 2019.

The new regulations regard the following issues:

Transfer Prices

  • new thresholds for TP requirement – PLN 10 M for tangible and financial transactions, PLN 2 M for other transactions. The change was aimed at reducing documentary obligations, however, it may involve a documentary obligation for taxpayers who currently do not have such obligation due to revenues or costs below EUR 2 million. According to the regulations being changed, the taxpayer who concludes the above-mentioned types of transactions with the indicated values, are required to prepare local transfer pricing documentation, even if the sum of its revenues or costs does not exceed EUR 2 million;
  • no need to show