Capital groups

Does your company operate in a group of companies in Poland? Check if it’s not more profitable to settle jointly – a tax capital group is a tax tool that, when properly implemented, yields evident and less evident benefits. Let’s see together if it’s a good solution for your company.

The VAT group is a new tax tool for Polish capital groups that allows for simplifying VAT settlements and increasing their efficiency. The solution is particularly interesting for groups where there is a business exempt from VAT (with a limited scope of VAT deduction). However, it may be of interest to other entities that want to improve cash flow in group transactions or reduce administrative and documentation obligations.

Transactions between related companies are still of interest to Polish tax authorities. The lack of appropriate, qualitative documentation supported by proper analyses can mean big problems. It’s not worth the risk.  When planning transactions with a related entity, one should keep in mind that fulfilling obligations under the transfer pricing regulations requires collecting a lot of information about the economic event itself, the external conditions, as well as specialist knowledge in the field of tax law (including e.g. OECD guidelines), accounting, and the business aspects of the client’s operations.

Do you pay interest, dividends, or royalties to foreign contractors? What about remuneration for services? The saga on changes to the Polish withholding tax (WHT) regulations seems to be endless, but we are up to date 😊 and we know what and how to do it safely.