The Ministry of Finance takes action to encourage foreign investors. As of next year, foreign investors will be facilitated.
Facilitation will include:
- • MF Service Center (Investor Desk)
- • Interpretation 590
- • Tax VAT groups
- • Poland Holding Company
- • VAT option for financial services
- • Facilitation of the tax capital group
The activities of the Ministry of Finance aim to make the new package of actions aimed at encouraging foreign investment a business card of our country. A package of solutions has been presented 14 June within the component Polish Deal.
It aims to increase the attractiveness of Poland as a country to locate capital by softening the current solutions and introducing new ones, which consequently boils down to creating a system that will be able to provide fast and comprehensive service to investors.
Minister of Finance, Funds and Regional Policy Tadeusz Kościński commented on the ministry's activities as follows: "We must use the post-pandemic thawing of world economies to strengthen foreign investments in our country by creating more attractive tax conditions".
Provided the introduction of VAT groups [1] , removing tax barriers for holding companies located in Poland, the possibility of taxing VAT on financial institutions, introduction of facilitations for capital groups are rather a modification, improvement of existing solutions. On the other hand, the creation of the Investor Desk in the Ministry of Finance and the possibility of an individual interpretation 590 is an absolute novelty.
Investor Assistance Centre
A very large tax change for large investors will be the opening of the Service Centre in MF (the so-called Investor Desk). Minister Tadeusz Kościński informed that the Investor Assistance Centre will be established for strategic clients both from abroad and from Poland.
It will take care of their comprehensive service, both at the interpretation stage 590 as well as later, as part of the current service of the company, which decided to focus on Poland. The Ministry will directly provide services to key investors on a "one window, one decision, quick information on the tax’.
Interpretation 590
The information provided by the Ministry of Finance shows that, like Italy, Hungary, Slovakia and other countries competing with us for investments, specific solutions for strategic partners will be introduced on purpose. MF wants to spend it on big investors one an opinion on all tax consequences of investing in Poland. It will be an interpretation 590, the investment agreement prepared directly by the Ministry of Finance.
„Interpretation 590 will be an iron letter, which will give the investor not only the highest protection, but also the high prestige and rank of the agreement. It will be a premium service for companies that will opt for Poland”, explains Deputy Finance Minister Jan Sarnowski.
The consequences of large investments analysed in the individual tax ruling concern PIT, CIT, VAT, excise duties, often also property tax or customs duties.
„The collection of tax information on planned investments can take many months. During the restart of the economy after the pandemic, investors like never before need quick, specific information and Poland will give it to them. Interpretation 590 It will include not only individual interpretations, but also the equivalent of binding rate information, binding excise information, a safety opinion and a prior price agreement", says Jan Sarnowski.
After the conclusion of the agreement with the investor, the interpretation will apply by 5 years after the date of issue. It will be possible to renegotiate its content resulting in amendments to the Agreement, including the extension of its duration.
[1] We have written more about this in an article published 2 June 2021 http://www.russellbedford.pl/aktualnosci/zmiany-w-podatkach/item/2267-trwaja-prekonsultacje-w-sprawie-grupy-vat.html
Author: Darya Bannaya
Younger tax consultant. Graduate of Law at the Faculty of Law and Administration of the University of Warsaw, graduate of Global Business, Finance and Management in Warsaw School of Economics. Winner of the Ministry of Finance competition “Tax to Leaders” 7. edition.
Conducting trainings and conferences for foreigners in tax aspects of conducting and establishing business in Poland. He specializes in tax law, advising clients on current matters relating primarily to income taxes. Author and co-author of a tax law publication.