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11 / 08 / 17 – Poland: Newsletter 38/2017 - Amendments to the CIT Act Resulting from the Council’s work

We would like to draw your attention to Council Directive (EU) 2016/1164 laying down rules against tax avoidance practices that directly affect the functioning of the internal market as well as Council Directive (EU) 2017/952 amending Council Directive (EU) 2016/1164 (further: ATAD).

ATAD aim to increase effectiveness against the erosion of tax bases in the internal market and the shifting of profits out of the internal market. ATAD are the results of the OECD’s BEPS project.

ATAD order the EU Member States to implement the following solutions:

  1. Limitations to the deductibility of interest (up to 30% of EBITDA). Changes in this respect are included in the bill amending the CIT Act to take effect on 1 January 2018.
  2. Exit taxation (exit taxes are levied on accrued capital gains when taxpayers transfer assets or move their tax residence or permanent establishment). Changes in this respect are to be implemented on 1 January 2020.
  3. General anti-abuse rule. This rule has already been incorporated in Section IIIa of the Tax Code.
  4. Controlled foreign company rules. These rules have been applicable since 1 January 2015 and their final harmonisation with the ATAD is stipulated in the bill amending the CIT Act to take effect on 1 January 2018.
  5. Rules to tackle hybrid mismatches. Changes in this respect are to be implemented on 1 January 2020.

We will keep you informed about any further legislative work concerning the ATAD implementation.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Bałtyk Building, 13th floor
ul. Roosevelta 22
60-829 Poznań
tel. (+48) 61 643 45 50
fax. (+48) 61 643 45 51
Warsaw Office
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Al. Jerozolimskie 81
02-001 Warszawa

This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries.
Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.

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