On April 26, 2024, the draft Act implementing into the Polish legal system the provisions of the EU Directive on the principles of the global minimum tax (“Pillar 2”) was published. The purpose of the proposed Act is to implement in Poland, resulting from Council Directive (EU) 2022/2523, the principles of the global minimum tax. This means aiming for taxation with top-up tax on capital groups whose effective tax rate (“ETR”) is less than 15%.
According to the announcements of the Ministry of Finance, the Polish legal system will implement: the global top-up tax (in accordance with the IIR principle, i.e., the inclusion of income for taxation), the top-up tax on undertaxed profits (in accordance with the UTPR principle, i.e., the undertaxed profit rule), and the qualified domestic minimum top-up tax (QDMTT).
The draft regulations introducing the provisions of Pillar 2 are particularly important from the perspective of tax credits in force in Poland, which may lower the ETR below 15% for Polish taxpayers, thus triggering the obligation to pay a top-up tax (for entities headquartered in Poland, this may be the qualified domestic minimum top-up tax).
