Second version of Estonian CIT in pre-consultations
The Finance Ministry has launched pre-consultations on another package of tax changes to be introduced as part of the Polish New Order. This time, comments can be submitted on the IPO relief, the second version of Estonian CIT, the consolidation relief and the facilitations for CPG.
Pre-consultations are open to everyone, which means that anyone can submit comments on MF’s ideas. They will last until 25 June.
– As we reported earlier, the IPO relief is to be an incentive for companies to go public, and for investors to support IPOs. The relief is to allow 150% of expenses related to, e.g. preparation, transformation of the organisation, preparation of the offer, marketing activities to be treated as costs. However, in the case of advisory, legal and financial services, directly related to the issue, the deduction will be up to a maximum of 50% of the expenses, but not more than 50 thousand PLN without VAT. On the other hand, those who invest in the debutant’s shares and keep them for three years will not pay tax on their sale, remembers Łukasz Kupryjańczyk, tax advisor and partner at Thedy & Partners.
The changes in Estonian CIT are aimed at expanding the group of entrepreneurs who will be able to use this form of settlement from 2022. From January next year, every capital company, regardless of its size, will be able to choose to settle according to the rules of Estonian CIT, because the limit of company income required so far at the level of PLN 100 million will be abolished. The obligation to incur certain capital expenditures will also be abolished. Limited partnerships and limited joint-stock partnerships will also become eligible for lump-sum taxation.
Moreover, only two conditions will remain, i.e. the requirement to run a real business in Poland and a simple ownership structure.
– Another consulted change to facilitate the Tax Capital Group. Today, PGK may be formed by capital companies, whose average share capital amounts to half a million PLN. After the change, it is to be PLN 250 thousand. The condition of profitability will also disappear – adds Łukasz Kupryjańczyk.
The last relief pre-consulted until 25 June is the one connected with consolidation. This solution provides that in the consolidation process, a company, apart from including the expenses connected with the acquisition of another company in its costs, will also be able to deduct their equivalent from the tax base once again.