Residence in Poland? You have a chance for a new lump sum
As of 1 January 2022, the Polish Deal will introduce a new preference into tax regulations - a special lump sum, which will be available to those who decide to change their tax residence - to Poland.
– In order to benefit from the new lump sum (foreign income will be taxed with it), it will be necessary to fulfill certain conditions. One of them will be to incur certain expenses for precisely indicated purposes. The Ministry of Finance has published a draft regulation that indicates these purposes – reminds Adam Allen, tax advisor, partner in Thedy & Partners.
The preferential lump sum will be possible when the person who will transfer the residence will spend in a year at least 100 thousand zlotys for economic growth, development of science and education, protection of cultural heritage or promotion of physical culture. In the draft regulation, the Minister of Finance specified that these could be the following:
– donations to non-governmental organizations or entities carrying out public benefit activity – donations will have to be related to science, culture and monuments, sport and entrepreneurship,
– expenditure incurred directly on:
(a) sporting, cultural or supporting higher education and science activities,
- b) the acquisition of an immovable monument entered in the register of monuments, if the taxpayer remains the owner of this monument continuously for two years from the date when the expenditure was incurred,
- c) care over an immovable monument entered in the register,
- d) the acquisition of shares (stocks) in an alternative investment company, if the taxpayer remains the owner of these shares (stocks) for an uninterrupted period of two years from the date when the expense was incurred.
The regulation is to enter into force as of 1 January 2022.