Share >

News

Obligation to report the Ownership Structures of Real Estates Companies in Poland

We would like to remind you that at the beginning of 2022 was introduced the obligation to report the ownership structures of real estate companies to the tax authorities. Who is required to provide information This obligation is subject to...

Changes of the Deadlines of Rrporting of Transfer Prices in Poland

We would like to inform you about changes of the deadlines of reporting of transfer prices in Poland from the beginning of 2023. Deadline for preparation of local transfer price documentation The amendment to the Corporate Income Tax Act changed...

Estonian CIT – an option worth considering

What has come to be known as Estonian CIT – a flat rate on corporate income – is becoming a more and more interesting form of taxation every year. The name for this method of taxation comes from the fact...

Use of the National e-Invoice System – analysis of the proposed regulations

Following consultations, the Ministry of Finance has decided to postpone the effective date of the mandatory use of the National e-Invoice System by six months. Accordingly, the use of the National e-Invoice System (Polish: Krajowy System e-Faktur, KSeF) will become mandatory...

Actio Pauliana

The principle that agreements must be kept (pacta sunt servanda) is not always respected – it often happens that debtors fail to meet their obligations and creditors are forced to pursue their rights in court. However, even the most favourable...

Obligation to correctly identify companies in letters and commercial orders

It is not unknown for entities entered in the National Court Register (KRS) to incorrectly provide their registration details. Sometimes they do not even include such details at all, despite the obligation set out in the Commercial Companies Code and...

Tax on shifted profits

Provisions on shifted profits have been in force since 1 January 2022. They were intended to replace the previous regulations limiting the costs that could be incurred for the benefit of a related party (Article 15e of the CIT Act)....

Remote Work in the Labour Code

One of the most significant labour law changes in 2023 in Poland will be the comprehensive regulation of remote work, which has become extremely popular in the wake of the COVID-19 pandemic. Remote work has become a permanent feature of...

A company’s commercial representative – a few words about a proxy holder

In the course of running a business, it may be necessary to involve a person whose powers are similar to those of a person holding a leading position in the company. A written power of attorney is usually granted for...

Absence from work – how should an employee proceed?

Absences from work fall into two main categories – excused and unexcused (unauthorised). There are many reasons why an employee may be absent from work, including holidays, illness (a L4 sick leave) or donating blood. All these examples relate to...

Hungarian company created for the purpose of a cross-border merger

According to the Hungarian Act CXL of 2007 on Cross-border Mergers of Limited Liability Companies, it is possible to set up a special limited liability company with its registered office in Hungary specifically for the purpose of cross-border mergers. Below...

New deadlines for withholding tax

At the end of August 2022, the Regulation on the Extension of Certain Deadlines Related to Meeting the Obligations Resulting from Withholding Tax came into force. (more…)

Tax clarifications on VAT groups

On 11 October 2022, the Ministry of Finance published the eagerly awaited tax explanations on VAT groups. These explanations (the “MF Clarifications”) relate to regulations on the creation and operation of a new type of taxpayer – a VAT group....

Who cannot be appointed as a member of the management board or a commercial representative of a company?

The amendment to the Code of Commercial Companies that came into force on 13 October 2022, changed the criteria when appointing members of the management board or commercial representatives, among other things. (more…)

Contracts executed by the company with a member of the management board

During the lifetime of a limited liability company, a person holding the position of a member of the management board may wish to enter into a contract with the company. (more…)

Non-Solicitation Clauses

In industries with limited access to employees with the required skills, it is extremely important to properly regulate relations with contractors with regard to the takeover of key employees. This is because, in today's market reality, employee poaching is becoming...

The Sejm amends the CIT Act

On 15 September 2022, the lower chamber of the Polish parliament passed a bill amending the Corporate Income Tax Act (the “CIT Act”). Based on the explanations available on government websites, the amended CIT Act introduces regulations clarifying certain existing...

Amendment to the duties of members of the management board of a Polish limited liability company

On 13 October 2022, an amendment to the provisions of the Polish Code of Commercial Companies (the "CCC") will come into force covering a number of provisions, including new obligations for members of the management board of a limited liability...

Overtime for managers

The Labour Code regulates working hours differently for those employed in a managerial position. Unlike standard employees, employees who manage people on behalf of the employer, as well as managers of separate organisational units are expected to perform work, when...

Supervisions of corporate email

Since employers have the right (and obligation) to ensure the smooth operation of the company, they may also supervise the manner in which their employees perform their duties. Such supervision specifically includes business correspondence exchanged by the employee using a...

Withholding tax in 2022

Under the laws binding in 2022, where the aggregate value of payments made to an affiliated entity exceeds PLN 2 million in any tax year, the tax remitter is required to withhold, on the payment date, a flat rate income...

Polish Deal 2.0 – what is changing?

The Act Amending the Act on Personal Income Tax has been signed by the President and became effective as of 1 July 2022. The Act modifies the amendments introduced by Polish Deal 1.0, reducing the tax complexity to a certain...

Termination of Employment Relationships due to Redundancy or the Elimination of the Position

The economic situation often forces businesses to take measures aimed at cutting costs. With budgets being squeezed, employers might be looking to reduce headcount. However, an employer who has decided to downsize must carry out layoffs in compliance with the...

Sobriety at Work

What can an employer do if an employee reports to work drunk? First of all, the employer must not allow an employee to perform their job while drunk, including an employee who is unfit for work as a result of...

Physical Defects in Real Property

It sometimes happens in conveyancing that the actual area of the land or property differs from the area initially declared by the owner, or even from the area registered in the official documents (the land and mortgage register or the...

Changes in transfer pricing

Since 2022, taxpayers have been dealing with a substantial number of changes in taxes, though these are unfortunately not advantageous in many cases. Nevertheless, among all these new amendments, there are some that can be regarded as positive developments. Such...

VAT Group

Starting from 1 July 2022, a new facility will be introduced to the Polish VAT system, i.e. VAT grouping. This mechanism will streamline VAT settlements and reduce administrative burdens between related parties from different industries. In many cases, VAT groups...

Posting an employee to Poland

In the context of dynamic cross-border economic cooperation, labour mobility is essential. Businesses should remember that posting an employee is subject to special legal regulations that, if not complied with, may trigger financial consequences. The important issue is to know...

New obligation to hold a cryptocurrency licence

Cryptocurrencies have been arousing huge interest among enthusiasts of new technologies and finance and among laypeople for a few years now. There are at least several reasons why the cryptocurrency business is blossoming. (more…)

R&D Tax relief

Tax relief for research and development was introduced at the beginning of 2016. Since 2018, it has been specifically advantageous to businesses being CIT and PIT payers. Starting from January 2022, taxpayers may combine two measures, i.e. R&D relief and...

Minimum corporate income tax

Since 2022, a minimum corporate income tax has been in force, i.e. a corporation tax. What is the corporation tax and who does it apply to? This is a brand new type of tax liability for corporate taxpayers (more…)

Whistleblowing – the history of the Whistleblower Directive

A whistleblower must sometimes make difficult decisions before reporting a breach of law that may significantly affect his or her situation. Therefore, in order to protect whistleblowers, the directive of 23 October 2019, commonly known as the Whistleblower Directive, has...

Does every shareholder have the right to inspect the company’s accounts and documents?

When joining a company, a new shareholder should know what rights they have with respect to the company. In addition to obvious issues such as the right to participate at shareholders’ meetings, a shareholder has the right, under Article 212...

The Work-life Balance Directive

Going back to work after having a baby is an important and common concern among women. This issue has been addressed by the European Parliament in Directive (EU) No. 19/1158 of the European Parliament and of the Council of 2019/1158...

Limited joint-stock partnerships

Since the entry into force of the new Polish Deal regime (Nowy Ład), businesses have been searching for a golden remedy, planning the reorganisation of their firms. Inspired by information found on the internet, many are storming to Ecovis Legal...

Polish Deal – undeclared work

The issue of undeclared work is of great concern in Poland. What privileges do informal workers lose? Working in the black economy has not been overlooked in the landmark overhaul of the Polish legal and tax system (the Polish Deal)...

Whistleblower Act

The Polish Act on the Protection of People Who Report Breaches of Law, known as the “Whistleblower Act” regulates the procedure for reporting breaches of law (internal and external reporting) and the protection of those that report them (whistleblowers). (more…)

POLSKI ŁAD AND CHANGES TO WHT

Nowy Ład – the “Polish Deal”, which the Polish President signed on 16 November, introduces a range of novelties for taxation, including withholding tax. The new law will enter into force on 1 January 2022 (more…)

ACT ON THE ELECTRONIC DELIVERY OF DOCUMENTS

The Act on the Electronic Delivery of Documents, which entered into force on 5 October 2021, is aimed at modernising, streamlining and standardising communication with the public authorities. (more…)

Newsletter No. 5/2021

1. The scope and application of a commercial representation A commercial representation (prokura) is most frequently associated with companies, despite being regulated by the Civil Code, and not the Commercial Companies Code. A commercial representative (prokurent) may be appointed by...

Newsletter No. 4/2021

1. Reduced CIT rate of 9% Currently, the standard CIT rates are 19% and 9%. Nevertheless, some income is taxed at a flat rate of 5%, 10% or 20%, while in the case of companies paying ‘Estonian CIT’,the tax rates...

The impact of the COVID-19 pandemic on the conditions on support for new investments

Businesses who intend to invest in certain types of activities in Poland may be able to receive government support in the form of tax relief. The conditions attached to this support are set out in the laws on CIT or...

A simple joint-stock company – a new type of a company

On 1 July 2021, the amended Commercial Companies Code will enter into force (Journal of Laws of 2019 No 1655 of 30 August 2019) introducing a new type of company, namely the simple joint-stock company. This new corporate vehicle will...

Tax strategy

Further to the contemplated amendments to the CIT Act as of 1 January 2021, a new requirement will be introduced for businesses to publish a tax strategy in relation to their Polish taxation. A company’s tax strategy would cover expenditures...

Changing the payment date vs. the statute of limitations on a debt

When performing a contract or settling contractual claims, the parties often modify the original payment dates. This practice is admissible based on the principle of freedom of contract, and so does not raise any controversies. It also happens (most often...

How to dismiss an employee?

In these difficult times for the economy, we are regularly asked the following question: how can we dismiss an employee? More precisely, we are asked how to do it so that, even though there is a good reason behind the...

Estonian CIT

From 2021, capital companies in Poland with a turnover of up to PLN 100 million that are owned exclusively by individuals will be subject to what is known as ‘Estonian CIT’ regulation. The shareholders will be able to settle their...

Employee Capital Plans (PPK)

As of 1 January 2021, the last group of employers – companies employing less than 20 people and public finance sector entities – became covered by Employee Capital Plans. What are Employee Capital Plans? An Employee Capital Plan is a...

Shield 6.0

From December 2020, businesses may once again use Covid-19-related aid under the “Shield 6.0”. This time the regulations apply to a broader group of businesses and the support includes: Subsidies to salaries A one-off additional “parking benefit” Additional “parking benefits”...

Newsletter No. 06/2020

Topics: Tax: 1. New e-mikrofirma app for submitting JPK_VAT files with a tax declaration Amendments: 2. Tax regulations included in the Act to Mitigate the Effects of COVID-19 Courts: 3. Operation of the courts during the COVID-19 restrictions Trending topics:...