Day 30 October 2014 entered into force of the Act of 21 October 2014 amending the Act amending the Corporate Income Tax Act, the Personal Income Tax Act and certain other acts (Journal of Laws, item 1478), determining the date of entry into force and application of the rules on controlled foreign companies. The amendment passed by the Sejm is due to delays in the publication of the Act of 29 August 2014 amending the Corporate Income Tax Act, the Personal Income Tax Act and certain other laws (Journal of Laws, item 1328), which would result in the inability to enter into force of its key provision from 1 January 2015.
The amendments are to repeal the provision that regulations on foreign controlled companies enter into force first day fourth the month following the day of publication. As a result of the entry into force of the revised regulations, taxpayers will apply the rules on foreign controlled companies starting from the tax year of the foreign company which started after 31 December 2014 If it is not possible to determine the tax year of the foreign company, or if that year exceeds the consecutive period 12 months the provisions on foreign controlled companies shall apply from the tax year of the taxpayer starting after 31 December 2014
The new rules provide that income from controlled foreign companies is to be taxed in Poland if the domestic company is in foreign ownership above 25% shares. The principle would apply if the tax abroad was lower by at least 25% than in Poland, and the company would only be listed in the register, with no actual activity.
For the record, the confusion associated with the entry into force of the CFC regulations was due to an error caused by the delay in the publication in the Official Journal of the Amendment of the PIT and CIT regulations introducing regulations on foreign controlled companies. The amendment of this President has already signed 16 September This year, however, it was not announced by the end of September, as a result of which the rules on foreign controlled companies could enter into force only 1 February 2015, not as originally planned, already 1 January 2015 Since the new regulations were intended to cover the revenue of foreign controlled companies developed from the tax year starting after their entry into force, the regulations would in fact apply from 1 January 2016