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Top-up tax to take effect as soon as January 2025

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​​​​​​​​​​​​​​​​by Dorota Białas​​​

17 June 2024


Polish taxpayers may have to pay top-up tax starting from January 2025, if:

  1. the company belongs to a corporate group whose global revenues exceeded 750 million euro in two of the last four years,
  2. the company’s effective tax rate is not higher than 15 percent.

Currently, the legislators are working on a bill regulating the top-up tax applicable to members of international and domestic corporate groups. 

The bill is to transpose the relevant Council Directive (EU) into Polish law. The directive implements the global anti-base erosion model rules, which are the core part of the OECD Pillar 2 framework. 

The new regulations will be effective from 1 January 2025, but enterprises may voluntarily apply two of the three top-up tax collection mechanisms since 1 January 2024.

Challenge for taxpayers


The global minimum tax rules are very complicated and require a very good knowledge of accounting and income tax regulations. To comply with those rules, taxpayers must carry out elaborate analyses and simulations requiring close cooperation between tax experts, accountants and persons in charge of reporting. 

So where to start?


  1. As a first step, Polish enterprises should immediately check whether the group to which they belong exceeds the statutory threshold for consolidated revenues and thus whether the Top-Up Tax Act applies to them.
  2. In the next step, they should find out the first year in which the global tax should be reported for the group. As the provisions on top-up tax have already entered into force in some of the EU Member States, it may be advisable to carry out a simulation of tax accounting for 2024. 
  3. Entities operating in Special Economic Zones and the Polish Investment Zone, as well as those enjoying other tax relief options face the highest risk of having to pay the top-up tax. Nevertheless, any company belonging to a multinational group should already start appropriate preparatory measures.

Trust the experts


In view of an advanced stage of work on a bill regulating the top-up tax applicable to members of international and domestic corporate groups – by transposing Pillar Two of BEPS 2.0 into Polish legislation – please find below our proposal for our comprehensive services.

top-up tax


We will be glad to support you in the above process by conducting a first check analysis to assess the impact of the proposed legislation on your tax accounts in Poland, and outlining a further action plan.

top-up tax

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Dominika Tyczka-Szyda

Tax adviser (Poland)

Partner

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Dorota Białas

Tax adviser (Poland)

Senior Associate

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