The Polish Order will introduce a consolidation relief
A consolidation relief will be included in the tax legislation from next year. It will allow for the deduction of certain company expenses.
Such a solution has been included in the draft amendment to the tax law, which is to come into effect as soon as on 1 January under the Polish Order programme.
– The consolidation relief is modelled on Finnish solutions. It is to consist in the possibility of classifying as costs certain expenses connected with the acquisition of shares in Polish or foreign companies. The draft assumes that entrepreneurs will be able to deduct from the tax base, among others, expenses for legal services in the transaction of purchasing shares or stocks, including their valuation (due diligence), interest, taxes directly charged on this transaction and notary, court and stamp fees. However, the price paid by the taxpayer for the acquisition of shares will not constitute a cost. Deductions on this account cannot exceed PLN 250,000 in a year – explains Łukasz Kupryjańczyk, tax adviser, partner at Thedy & Partners.
The new regulations will also include conditions, which a taxpayer will have to meet in order to take advantage of such a deduction.
Currently, the draft amendment to the tax acts is in public consultation, which will last until the end of August.