Draft law implementing Pillar II submitted to the Sejm
We would like to inform you that on 25 September 2024, a bill on equalization of taxation of units of multinational and domestic groups (print no. 674) was submitted to the Sejm. The bill implements the provisions of Council Directive (EU) 2022/2523 of 14 December 2022, which aims to ensure a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union.
Key information:
- Companies affected: The new legislation will apply to companies with global revenues above €750 million. If the effective tax rate calculated under the new rules is less than 15%, these companies will have to pay the top-up tax.
- Data analysis required: The introduction of the top-up tax will entail the need to monitor accounting and tax information within the capital group on an ongoing basis. Companies will need to adapt their capital structures, business models and internal processes to the new legislation, which may result in additional administrative costs and impact on group cash flows.
Further steps
The bill is currently at the stage of first reading in the Sejm. If adopted, it will bring significant changes to the tax obligations of multinational enterprise groups and large-scale domestic groups.
We encourage you to analyze the potential impact of this legislation on your business. We will continue to monitor the progress of the legislative work and keep you informed of the next steps in the process of implementing the global equalization tax provisions into Polish tax law.
If you have any questions or require assistance in assessing the impact of the proposed legislation on your business, please do not hesitate to contact us.
KONTAKT
E: aleksandra.kalinowska@pl.Andersen.com
T: +48 22 690 08 70
M: +48 724 440 693
E: elzbieta.lis@pl.Andersen.com
T: +48 32 731 68 58
M: +48 664 948 038
