Changes in tax system are coming

From the 1st of January 2014, limited joint-stock companies will have to pay the CIT. It's the beginning of important changes concerning the companies incomes taxes.

From the 1st of January 2014, the load of limited joint-stock companies will increase. That's because they will also have to pay the CIT. With the beginning of the new year, this tax will also include companies on the limited joint-stock companies level as well as on the level of their general partners and shareholders. The tax will include all sectors. The subjects mentioned will have to pay the tax from received income from limited joint-stock companies.


The number of limited joint-stock companies has risen by over 2 600 companies, i.e. over 100 %. They've started to transform in other, more profitable legal forms. However, it's worth remembering that the regulations which will be introduced in January do not concern the companies having fiscal year different from the calendar year. This will allow for the use of tax allowances for a little longer – says Robert Nowak, Head of Tax Counselling Department in Deloitte.


These are not all of the changes to be introduced with the new year's eve. From this day forward, new legislation concerning unblocking of the channel of conducting of subparticipation transactions (i.e. the sale of credit claims on the basis of subparticipation deals by banks to securitization funds).


Further important modifications in this area will be introduced in 2015. According to the plans, from this moment on, one won't be able to count the interest from loans (credits) granted by related subjects (including the mother-companies) as income receiving costs, if the debt of the company receiving the loan to affiliated companies is higher than the equivalent of its own capital. The change, most likely influencing all the taxpayers being financed from related subjects, may cause various problems and force the modernization of the current way of financing – explains Dominika Ramirez-Wołkiewicz, Manager in Tax Counselling Department for Deloitte.


According to the Deloitte experts, most likely in the January of 2015 other regulations will come into force, according to which Polish entrepreneurs which have their related companies abroad, will have to pay in Poland the tax from these abroad-located companies. Companies whose yearly income in CFC do not exceed 250 000 Euro and others which conduct their actual economic operations abroad will be free of this tax. Such solutions can nowadays be found in countries like: Germany, Great Britain, USA and Australia.


Another changes which we should expect in the future are related to tax ordinance. One of the important issues, mentioned by Deloitte experts is the tax avoidance clause. The amount of information the financial institutions are given by treasury offices will also be increased.


The changes discussed have a very wide and revolutionary character. There's so much of them, that the authorities should perhaps consider the rewriting of the tax ordinance. There's no doubt that all planned changes have one aim: the improvement, in the next several years, of the polish tax system. Nevertheless, some of the propositions, such as the tax avoidance clause, should be more specific as fast as possible for them to be ever used in practice – sums up Robert Nowak.   

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