Tax
Articles on business taxation, tax reporting and payments, and changes to tax legislation.
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Intra-Community acquisitions and VAT: a CJEU judgment favourable to Polish taxpayers
In its judgment of 18 March 2021, the Court of Justice of the European Union (CJEU) considered a question referred for a preliminary ruling by the Regional Administrative Court in Gliwice. The case concerned whether the conditions for deducting input VAT on an intra-Community acquisition…
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Polish registered partnerships: a new category of CIT taxpayer
Registered partnerships with their registered office or management in Poland are CIT taxpayers if their partners include legal persons as well as individuals. As a result, tax may apply both at partnership and partner level…
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Estonian CIT: eligibility requirements and risks for companies
How to assess eligibility for Poland’s Estonian-style corporate income tax, distinguish the company’s tax rate from the combined tax burden and identify risks before opting in.
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Estonian CIT: the assumptions behind the 2020 proposal
For many years, businesses have associated Estonia with exceptionally user-friendly tax procedures. It ranked a strong 12th in Paying Taxes 2020, compared with Poland’s 77th place. It appears an attractive place to do business, particularly through companies with share capital. Tax procedures…
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CJEU: Poland’s conditions for bad debt relief are too strict
The mechanism known as ‘bad debt relief’ allows the taxpayer (creditor) to adjust the VAT taxable amount and the VAT due. To do so, the business must satisfy the conditions set out in Article 89a of the VAT Act, as follows:
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Limited partnerships as CIT taxpayers: what you need to know
The idea of subjecting limited partnerships to CIT first arose in 2013. It was abandoned during legislative work, and only partnerships limited by shares were brought within the CIT Act. The main reason for this was that…
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Tax measures to improve liquidity during the COVID-19 pandemic
The Anti-Crisis Shield allows PIT and CIT taxpayers to deduct losses incurred in 2020 from income earned in 2019. In a crisis, when many businesses struggle to remain in…
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Bad debt relief
VAT bad debt relief is an established mechanism and has been available in its current form for a year. The new development is simplified bad debt relief for PIT and CIT, which does not require court proceedings.…
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R&D tax relief: documentation and implementation
A taxpayer claiming R&D relief submits form CIT/BR with the tax return, showing the eligible costs to be deducted. The same applies, as appropriate, to the basis for calculating a payment under the relief. The first entries on the form are the expenditure amounts…
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R&D tax relief: eligible costs
Three principles should guide the identification of eligible R&D costs.