Tax Blog

Taking advantage of the Polish Investment Zone’s preferences requires investors to make a detailed calculation of exempt income and tax credits. These are key steps to effectively take advantage of the available benefits. In our latest blog post, we explain how these calculations should be performed. We discuss issues such as cost imputation, proportional cost imputation in the absence of direct imputation, and how to calculate the public assistance limit. In addition, we explain how the loss arising from new investment affects the calculations. Understanding these principles can help investors take better advantage of the preferences of the Polish Investment Zone.

In the business world, strategies based on the creation of holding structures are often used to optimize taxation and manage various business units. As a result, issues related to the proper functioning of such structures and their taxation rules are becoming increasingly important. In today’s post, we will focus on the criteria that must be met for a holding company to qualify for the Polish Holding Zone (PSH) preference. We will cover topics such as actual economic activity, the specifics of listed companies and the reporting obligations of holding companies.

Preparing for the future is one of the key elements of running a successful business. But what will happen to your business after you die? Will your business, which you have worked on all your life, cease to exist? Is there a way to ensure the continuation of your business after your passing? The law offers various options for those who want to secure their businesses for the future, and one of them is the establishment of a successor administrator. In Poland, as of November 2018, entrepreneurs have the option of establishing a successor administrator, who can temporarily run the business after the owner’s death, ensuring the continuation of the business.

Risk management, especially in the area of legal liability, is important in any rapidly growing business. It is important for entrepreneurs to realize the possible consequences of business failures, which can affect their personal financial situation. Accordingly, many companies are looking to reduce their liability through various forms of business transformation. In this article, we take under our microscope the various options available to sole proprietorships – from transformation into a sole proprietorship, to contribution of a sole proprietorship to a newly formed company, to options related to limited partnerships.

As of January 2022, under new regulations, a “pay and refund” mechanism has been introduced in the context of withholding tax (WHT). Have these changes affected your business? Do you understand how this new system works and what obligations have been imposed on payers? If not, this post is dedicated just for you. Understanding the new mechanism is key, as currently payers are required to collect WHT at the basic rates (19% or 20%), even if the conditions for exemption or reduced rate are formally met.

In the area of taxation, especially in the context of international relations, the issue of the application of tax preferences often arises. This concerns, among other things, a situation in which there is an excess of PLN 2,000,000 in payments to foreign entities. Then, according to tax law, it is the payer’s duty to withhold withholding tax (WHT) at the standard rate. However, there is an instrument that makes it possible to exclude this obligation – this is a tax preference opinion. Is it effective and when is it worth using such an option? What are the pros and cons of this option?

In the corporate world, withholding tax (WHT), is often an unavoidable cost associated with doing business. However, there are certain mechanisms that can allow to reduce this burden, including tax preferences. When applying these preferences, the key is to file the right applications and meet specific conditions, which is not always easy in practice.

The essence of the relief for research and development activities is the possibility of deducting from the tax base (income) expenses that constitute qualified costs incurred for the indicated activities. The legislator in the tax regulations has included a closed catalog of expenses that can form the basis for calculating the relief. Thus, a taxpayer under the relief is allowed to deduct from income only those expenses that fall into one of the statutory categories.