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Polish Deal 3.0: Transfer prices and other changes in CIT


​by Daria Walkowiak-Dobner

25 października 2022

On 21 October 2022, the Polish President signed the bill amending the Corporate Income Tax Act (the CIT Act) and some other acts.  
The most important changes include the abolition of the requirement to prepare documentation for indirect transactions with tax havens.
According to the new transfer pricing regulations, taxpayers will no longer be required to identify the beneficial owner of payments for every transaction, including those between independent enterprises, that exceeds the threshold that triggers the documentation obligation. So far, especially for large enterprises, this has often involved investigating up to several thousand transactions.
Based on transitional provisions, the regulations, which are favourable from the taxpayers' perspective, apply to transactions initiated and not completed before 1 January 2021 and transactions concluded after 31 December 2020.

Other changes 

Not only transfer pricing rules will change. The bill provides for the following changes, among other things: 
  • regulations on the so-called hidden dividend have been repealed; 
  • an exemption from minimum income tax for the period from 1 January 2022 to 31 December 2023 has been introduced;
  • rules on tax on shifted profits have been amended; 
  • rules on CFCs have been changed;
  • rules on WHT have been changed; 
  • rules of tax-deductibility of debt financing costs have been modified; 
  • the "Estonian" CIT regime has been changed. 
The new law is supposed to enter into force on 1 January 2023, except the transfer pricing rules, which will become effective the day after the promulgation.
Some regulations will work retroactively from 1 January 2022. These include:
  • selected regulations concerning debt financing costs;
  • exemption from minimum income tax.

Anti-inflation legislative package 

The bill also extends the effective period of the anti-inflation legislative package until 31 December 2022. This means that the currently reduced VAT rates on food, motor fuels, natural gas, electricity and heating, fertilisers and other agricultural inputs, among others, will be maintained.
If you have any questions about the Polish Deal, please contact our experts.


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Daria Walkowiak-Dobner

Attorney at law (Poland)

Associate Partner

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