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Polish Deal: no more documentation obligation for indirect transactions with tax havens


​by Daria Walkowiak-Dobner

2 September 2022

The bill amending the CIT Act, which is to continue work on the next version of the Polish Deal, is now in the lower chamber of the Polish parliament (Sejm). Contrary to earlier communications, the Ministry of Finance has decided to listen to taxpayers and repeal provisions on documenting indirect transactions with tax havens. 

The key changes in transfer pricing waive the obligation to identify the beneficial owner and a potential obligation to document indirect transactions with tax havens, that is transactions in which the beneficial owner of a payment is a resident of a tax haven.

New provisions with retroactive effect from 2021 

The bill includes a transitional provision allowing retroactive application of the proposed solutions. It nullifies the controversial provision as if it had never existed. This means that the waiver of the obligations imposed on indirect transactions with tax havens will apply to transactions carried out in 2021, that is over the entire period during which Articles 11o(1a) and 11o(1b) of the CIT Act were in effect.

For taxpayers who have not yet started work on reviewing and documenting their indirect transactions with tax havens, this could be very good news, provided that the legislative work is completed by the end of this year. This planned amendment lifts the obligation that has been highly controversial and widely criticised from the very beginning. 

For the moment, the legislation still requires taxpayers to identify the beneficial owner and, if applicable, prepare transfer pricing documentation for indirect transactions with tax havens. The deadline for these obligations is the end of December 2022. The bill amending the CIT Act is at an early stage and it is unclear what shape it will eventually take. Therefore, we recommend closely following the progress of legislative work. 

Our experts keep track and review the changes. 

Want to know more? Get in touch with us. 


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Daria Walkowiak-Dobner

Attorney at law (Poland)

Associate Partner

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