Interpretations concerning withholding tax – different approaches by the Polish Ministry of Finance
Withholding tax (WHT) has long been one of the key issues for companies engaged in international business. Recent general interpretations issued by the Polish Ministry of Finance aimed to clarify the conditions for WHT exemptions but have, in turn, introduced additional uncertainties. New interpretations of withholding tax – what is changing? The Polish Ministry of...
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German investments in Poland – Bosch, Miele, and Knorr-Bremse move production to Poland
An increasing number of German companies are recognizing the potential of investing in Poland by relocating production and expanding operations in the country. The main reasons for this decision are rising labour and energy costs in Germany, as well as increasingly complex bureaucracy. Poland is becoming an attractive destination not only due to lower operational...
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Application of the split payment mechanism in Poland extended until 2028 – what does this mean for taxpayers?
Poland has long been one of the few countries in the European Union that applies the mandatory split payment mechanism (in Polish: mechanizm podzielonej płatności; MPP) in VAT settlements. This solution, which initially sparked a great deal of controversy, has proven to be an effective tool in combating tax fraud. The split payment mechanism will...
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Register a company in Poland – Incentives for foreign investors
Have you considered expanding your business into the dynamic and rapidly growing Central European market? Poland stands out not only with its stable economy but also with a wide range of support instruments for entrepreneurs, including foreign investors. From tax reliefs to access to modern industrial parks – the opportunities are truly impressive. Special Economic...
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German companies are increasingly eager to invest in Poland
Central and Eastern Europe are becoming an increasingly attractive destination for German businesses, with Poland standing out as the most popular location in the region. According to a survey conducted by KPMG and the German Eastern Business Association between November 20 and December 31, 2024, 22% of German companies plan to relocate their production to...
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Country-by-Country reporting – filing requirements for CbC-P notification and CbC-R report
According to OECD regulations on tax information exchange, multinational corporate groups are required to report their organizational structures and financial results. The purpose of this obligation is to ensure greater tax transparency and to limit aggressive tax optimization practices. What is CbC Reporting? The primary goal of Country-by-Country (CbC) reporting is to increase tax transparency...
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Polish GDP in 2025 compared to the global economy – World Bank Report
Forecasts in the World Bank’s Global Economic Prospects report indicate that the Polish economy is expected to grow by 3.4% in 2025. Although this growth rate has been revised downward compared to previous forecasts (3.7%), Poland remains one of the fastest-growing economies in Europe, well ahead of the eurozone, where growth is expected to be...
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Right to deduct VAT on the purchase of intra-group services – CJEU judgment
The judgment of the Court of Justice of the European Union (CJEU) of December 12, 2024, in case C-527/23 concerns the right to deduct VAT on services purchased within the same group of companies. The judgment highlights the limits of tax authorities’ interference in assessing the business purpose of expenses. It points out that the...
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Polish Investment Zone (PIZ) – 2024 summary in numbers
The Polish Investment Zone (PIZ, in Polish: PSI) is one of the key instruments supporting entrepreneurs in Poland, based on a system of tax reliefs. In practice, it allows companies to achieve significant savings in return for making new investments. However, numbers best illustrate how effectively this mechanism functions. Let’s take a look at the...
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The interpretation of tax exceptions must be strict – landmark judgment of the Supreme Administrative Court on tax-deductible expenses
On December 19, 2024, the Supreme Administrative Court of Poland (in Polish: NSA – Naczelny Sąd Administracyjny) issued a landmark judgment in case II FSK 409/22, concerning the interpretation of Article 16(1)(22) of the Corporate Income Tax (CIT) Act in Poland. The Court unequivocally stated that this provision, as an exception to the general rule...
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