Ta strona korzysta z plików cookies. Zasady ich przechowywania są dostępne w Polityce prywatności


On 28th November 2020, the President signed a bill introducing changes to the Corporate Income Tax Law, Personal Income Tax Law, Act on Lump-sum Income Tax on Certain Revenues Earned by Individuals and certain other acts.

1. Taxation of limited partnerships with CIT

According to the adopted Act, limited partnerships will become CIT taxpayers. In practice this means double taxation of the limited partners. Taxation will take place once when a limited partnership makes a profit and for a second time when the profit will be paid to the limited partners.

The new regulations will allow limited partnerships to choose whether to become taxpayers from 1 January 2021 or 1 May 2021.



2. Taxation of selected general partnerships with CIT 

The newly established regulations set an obligation for a general partnership to provide information about partners who have, directly or through other entities, rights to participate in the profits of the general partnership. According to the new regulations general partnerships, other than those owned by natural persons, will become CIT taxpayers, if they do not disclose information on who is liable for tax on their income.


3. Taxation of tangible liquidation proceeds

New provisions clarify that the that the tangible liquidation proceeds (liquidation proceeds other than cash) shall be subject to taxation on the side of a liquidated entity. This issue has been so far disputed between the tax authorities and courts.


4. Changes in taxation of  real estate-rich companies   

Based on the new law, the obligation to remit tax from sale of shares in real property companies will lie on the real estate-rich company (currently it is the seller who is liable for tax).

The bill introduces a new definition of a real estate-rich company. In line with the proposed definition, real property company should be understood as an entity other than natural person, obliged to prepare balance sheet based on provisions on accounting, in which:

  1. a) as of first day of the tax year at least 50% of market value of assets directly or indirectly consisted of market value of real estate located in Poland or rights to such real estate - in case of entities commencing their activity
  2. b) as of the last day of the year preceding their current tax year at least 50% of balance sheet total value of assets directly or indirectly consisted of balance sheet value of real estate located in Poland or rights to such real estate - in case of entities other than mentioned above, and 

Additionally, in order to qualify as real property company:

  1. a) the respective value of the real estate must exceed PLN 10m and 
  2. b) in case of entities mentioned in the point b) above, in the previous tax year the company obtained at least 60% of tax revenues from (sub)lease, of real estate and agreements of similar nature or from ownership rights relating to real estate/other real property companies

Provisions provide that non-EU/EEA real estate-rich companies should appoint a fiscal representative.



5. Limitation of deductibility of tax losses in case certain restructuring activities

The bill limits the taxpayer right to deduct an incurred tax loss in case of certain restructuring activities (mergers, in-kind contribution of enterprise or organized part of enterprise, contribution of funds followed by purchase of enterprise or organized part of enterprise).


6. Restriction on depreciation rates changes

The taxpayer right to reduce or increase depreciation rate will be limited for entities benefiting from a tax exemption. According to the bill, these restrictions will be applied only to fixed assets and intangible assets recorded after December 31, 2020.


7. Obligation for CIT taxpayers to hold publicly available tax policy

According to new regulations CIT taxpayers will be obliged to hold publicly available “tax policy”. 

The obligation will apply to:

  • taxpayers whose revenues exceeded EUR 50 million in a tax year,
  • tax capital groups,



8. 9% CIT rate available to taxpayers which income does not exceed EUR 2M

The 9% CIT rate shall be applicable to taxpayers which income does not exceed EUR 2M. Currently the limit is EUR 1.2M.


9. Amendments to the abolition relief in PIT

The new bill provides a limit for the deduction of the abolition relief to an amount not exceeding the amount reducing the tax ( art 27.1a.1 of the PIT Law) - PLN 1360. The benefit of the relief will therefore be limited and will increase the burden on Polish residents who receive income and settle the tax abroad, in cases when proportional deduction method is applicable.

The amendment also provides that the relief will not apply to persons performing work or services outside of the country's land territory (e.g. sailors). This is a fundamental change compared to the original version of the draft.


10. Other amendments