Polish New Deal – draft tax regulations

28 July 2021

The Ministry of Finance published on 26 July 2021 the long-awaited draft tax regulations to be implemented as part of the Polish New Deal.

Their main objectives include:

• personal tax exemption amount increased to 30 thousand zloty;
• tax threshold increased to 120 thousand zloty;
• flat tax rates reduced for selected professions, e.g. engineers, ITC specialists, physicians;
• non-tax-deductibility of health insurance contributions.

Relief options for enterprises and incentives for investors

The New Deal envisages the setting up of the so-called Investor Desk, a unit through which the Ministry of Finance will provide comprehensive assistance throughout the investment process. Additionally, investors will be able to receive Advance Tax Ruling 590 (Interpretacja 590), which will describe all tax implications of an investment project planned in Poland. The Ministry is also going to introduce favourable solutions for holding groups and investment incentives for financial institutions.

Starting from 2022, apart from innovation relief options, enterprises will be able to use: the IPO relief along with relief for investments in companies going public, consolidation relief, expansion relief, or relief for Venture Capital investors. The new regulations also provide for modifications of the so-called Estonian CIT rules.

These are only some of the solutions included in the draft tax regulations planned within the framework of the Polish New Deal. How will the new laws affect your business?