Poland: Amendments Of CIT And PIT Acts In Poland

Last Updated: 12 September 2016
Article by Karina Furga-Dąbrowska, Cezary Przygodzki and Tomasz Krasowski

On 5 September 2016, the lower chamber of the Polish parliament (Sejm) accepted changes made by the Senate to the Act amending PIT and CIT. The Amendment Act has been sent to the President for signing.

The new law and most of the attendant amendments will come into force on 1 January 2017, although the Act also mentions a range of transitional provisions.

The key changes include the following:

  1. A reduction of the CIT rate from 19 to 15 percent for small taxpayers earning sales revenues (inclusive of VAT) of the equivalent of EUR 1.2m or less and for taxpayers launching new businesses for their first tax year. This change does not apply to payers of personal income tax, including sole proprietors.
  2. A non-exhaustive list is to be added to the CIT Act of cases when a non-resident's income (revenue) shall be deemed earned "in the territory of the Republic of Poland". The Act lists the following as income/revenue achieved by non-residents in Poland:
    • Income/revenue in the form of receivables coming from (made available, paid or set off) by Polish entities, regardless of where the underlying agreement was made or the relevant performance rendered.
    • Income/revenue from transfers of ownership of shares in companies, the totality of rights and obligations of partnerships lacking the status of legal persons or units in investment funds or in collective investment undertakings with at least 50 percent of their assets, direct or indirect, comprised of real estate located in the territory of the Republic of Poland or title to such real estate.
    • Income/revenue from securities and derivative instruments other than securities, all admitted to public trading in the territory of the Republic of Poland on the regulated exchange market, including income/revenue from the sale of these securities and derivatives and from the exercise of the rights thereunder.

This particular change will matter when (income) revenue achieved by non-residents in the above instances is not subject to protection under the relevant double tax treaty. If that is the case, this income (revenue) will be taxed in Poland.

  1. New rules for determining revenue from the acquisition of shares in a company being a CIT payer in exchange for a contribution in kind of assets other than an enterprise or an organized part thereof. In this case the revenue shall be equal to the value of this contribution as set out in the deed of a company or other document of a similar nature which shall not, however, be less than the market value of the contribution. In effect, the revenue achieved by the entity making the in-kind contribution will be the market value of the contributed assets.

    With the current laws in place it may be argued that the revenue from a contribution of assets is limited to the nominal value of shares in a company received in exchange for a contribution in kind other than an enterprise or an organized part thereof. The currently prevailing interpretation of regulations governing taxation of in-kind contributions allowed for various tax optimization solutions, such as those involving contributions of assets to companies, with a portion of the contribution allocated to the share premium.
  2. A more precise description of legitimate economic reasons warranting preferential taxation of mergers and de-mergers of companies and the extension of the rules in this regard to exchanges of shares, with these exchanges to be now no longer tax neutral if there are no legitimate economic reasons for them. Due to tax neutrality, share exchanges (i.e. contributions in kind of shares in a company to another company) are often used in market practice. Once the proposed bill becomes law, the tax authorities will be in a position to challenge the tax neutrality of share exchanges when these are done with the sole purpose of achieving tax gains and not for legitimate economic reasons.
  3. More precise regulations governing the determination of tax deductible costs incurred when selling shares in the acquiring company, or newly established company, or a company being divided relying on the concept of "extinguishment" of rights incorporated in the shares.This amendment may have significance for entities which have carried out or are planning de-mergers.

    This amendment is particularly important when shares are being sold in a company being divided by spin-off. The regulations currently in place lend themselves to the interpretation whereby if a shareholder does not end up holding fewer shares in the divided company following the spin-off but the nominal value of these shares is reduced, when the shareholder then sells his shares in the divided company, the entire amount paid to acquire these shares may be recognized as tax deductible. This interpretation allowed for the recognition of tax losses on sales of shares in a divided company.
  4. Making the right of exemption from withholding tax, among others, of interest and licensing fees paid by a Polish company to a company taxed on its worldwide income in European Union (the latter being the Polish company's shareholder, subsidiary or sister company ― subject to the fulfillment of certain additional conditions) conditional on whether the company receiving the interest is simultaneously their beneficial owner.

    The CIT Act in its current wording does not unequivocally require that this condition be necessarily fulfilled. The proposed amendment meanwhile makes it very clear that in order to be eligible for the said exemption, the company receiving interest or licensing fees must be their beneficial owner, which is to say that it receives them for its own benefit and does not act in doing so as an intermediary for the benefit of other entities.

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
22 Nov 2017, Seminar, Budapest, Hungary

Join Dentons’ Employment group for a breakfast seminar to discuss the underused potential of the new Hungarian labor code. In the first half of the seminar, Márton Kertész, head of our Employment practice in Budapest, will speak about the practical experience of the new Labor Code (Act I. of 2012).

23 Nov 2017, Seminar, London, UK

The UK is one of Europefs largest investors in China, and is one of the largest destinations in Europe for Chinafs outward investment. Post Brexit, the UK is set to continue to be an important market for Silk Road investment (also known as the Belt and Road initiative), cementing London's position as the world's financial centre.

28 Nov 2017, Conference, Munich, Germany

On 28 May 2017, interested students, legal clerks and fully qualified lawyers will have the opportunity to meet Dentons at the JURAcon career fair in Munich.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.