8 October Poland and 135 the countries have issued a joint declaration on the continuation of cooperation on strengthening the international tax system.
Poland 135 Today, the countries issued a joint statement of their willingness to cooperate further in developing new rules for international taxation of the largest companies, including so-called digital giants.
Two Pillars
The statement is the result of negotiations which have been taking place since July. Then this 130 countries, including Poland, have issued the first joint statement in the framework of work at the Organisation for Economic Cooperation and Development (OECD) on their willingness to work on reforming international taxation and adapting international taxation rules to the challenges of the digital economy.
These rules will be based on two Pillars. Pillar I includes taxation of approx. 100 the largest companies, which, using the progress of globalisation and digitalisation, sell goods and provide services worldwide. They are not only companies providing digital content to us, but also the largest companies selling services and goods over the Internet as well as traditionally. Pillar II assumes a minimum global tax of 15% effective rate – explained Deputy Minister Sarnowski.
Protection for companies
The most important aspect for Poland on the international stage of the OECD is to maintain competitiveness by excluding as much as possible from taxation the minimum tax on global companies operating in real economic activity, the so-called substance-based car-out.
"At the very beginning of the negotiations we expressly stated that we want to attract investors who will create jobs in our country. And in fact, we managed to win a protective mechanism, which will not increase the taxation of foreign companies that invest in Poland," emphasised Deputy Minister Sarnowski.
The July version of the statement proposed a substance-based carve-out in the form of an exclusion at least 7.5% during a transitional period 5 years and after that period at least 5% asset values and wage values. The proposal to introduce a transitional period was then the idea of Poland. As a result of further intensive discussions and negotiations, the asset value ratio has been increased to 8% and wage values to 10%, and increase the transition period to 10 years with a reduction mechanism.
"We have always assumed that such a tax must hit so-called tax havens, that is, countries applying unfair tax competition. Poland is not such a country. Therefore, the global tax should not lead to increased taxation of foreign companies that invest in Poland and conduct real business here We have said it loud and clear This was our condition to join further work on the global taxation project – noted Finance Minister Tadeusz Kościński.
Combating tax havens
According to OECD studies, global losses related to corporate income tax avoidance are from 4% to 10% World income from this tax, i.e. between 100 a 240,000,000,000 USD A year.
According to a report published in January entitled “The Missing Profits of Nations”, 40% the profits of international corporations – 700,000,000,000 USD – goes to tax havens every year.
"The transfer of profits by large corporations, often through tax havens located in the European Union, takes place at the expense of other countries that are thus losing their tax revenues. On this course, they lose countries which do not apply unfair tax competition, including Germany, France, Italy, Hungary or Poland,” says Deputy Minister Jan Sarnowski.
CIT sealing effects in Poland
Poland is actively fighting the tax gap – not only in VAT, but also in CIT.
Thanks to this fight in years 2015-2020 CIT revenues increased in Poland by law 20,000,000,000 PLN (from 32,900,000,000 In 2015 to 52,600,000,000 In 2020).
According to research by the Polish Economic Institute, in 2018 CIT gap 22,000,000,000 PLN. It's about 35% less than 2014 In relation to GDP, the gap declined over the years 2014-2018 twice – with 2 to 1%. Consequently, even 80% The increase in CIT income during this period may result from a reduction in the CIT gap.