The ‘Polish Deal’ plan: You disclose income, you get a special tax
Polish authorities want to encourage the disclosure of foreign income not taxed in Poland. Under the ‘Polish Deal’ plan, a special tax is to be applied to disclosed amounts, according to the proposal of the Ministry of Finance.
According to the draft published by the Finance Ministry, a transitional income tax on certain foreign incomes of individuals, legal persons and other organisational units is to be introduced.
– This solution will be available to taxpayers interested in disclosing to the tax office the foreign income that has not been taxed so far in Poland. Taxation with the transitional income tax is to be voluntary. The MF wants to set a time for such tax disclosure. Taxpayers from mid- to late 2022 will be able to assess their legal and tax situation and voluntarily decide to make possible adjustments to income that has not yet been fully declared for taxation in Poland, explains Adam Allen, tax adviser, partner at Thedy & Partners.