On 28 June 2022, a draft of further amendments to the Personal Income Tax Act and other acts – Polish Deal 3.0 – was published on the Government Legislation Centre website (draft No. UD404).
The most important tax solutions provided for in the draft
Changes in the regulations on the obligation to document tax heaven transactions
- Documentation thresholds have been raised for transactions with tax haven entities:
- for direct transactions – from PLN 100,000 to PLN 200,000;
- for indirect commodity and financial transactions – from PLN 500,000 to PLN 2,500,000.
- Modifying the scope of the documentation obligation in indirect tax heaven transactions:
- it has been confirmed that the examination of transactions for the existence of a beneficial owner in a tax haven or settlements with a tax haven entity applies only to receivable recipients;
- as for domestic transactions, the documentation obligation in respect of indirect tax haven transactions has been limited to receivable recipients.
- Abolishing the presumption of beneficial owners having their residence in a tax haven
The presumption of beneficial owners’ tax haven residency has been abandoned – instead, the obligation to prepare local transfer pricing documentation has been excluded for entities making indirect arm’s length transactions if a receivable recipient:
- does not make settlements in the tax or financial year relating to the receivable received; or
- is not related to a tax haven entity.
- Facilitating the identification of beneficial owners of a receivable
It has been confirmed that a declaration made by a receivable recipient will be sufficient to verify the documentation obligation.
- Taxable persons will be allowed to apply the new regulations “retrospectively” to transactions initiated but not completed prior to 1 January 2021 and transactions concluded following 31 December 2020.
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