New 15% taxation in Poland – what will change from 1 January 2025?

As of 1 January 2025, a fresh regulation will enter into force in Poland. minimum global tax tallness 15%. In accordance with the requirements of the European Union and the global rules laid down by OECDThese changes aim to level the taxation conditions of the largest corporations worldwide. For companies, especially those international, this will mean higher taxation burden and the request to comply with the fresh requirements. This change will primarily affect large companies – tiny and medium-sized companies can sleep peacefully. See precisely what will change and how to prepare for these revolutionary changes.

Who's gonna gotta pay a fresh tax?

New 15 % minimum tax only the largest companies whose yearly turnover exceeds EUR 750 million. This means that most Polish SMEs (SMEs) will not gotta pay this tax. The main nonsubjective of this improvement is limiting taxation optimisation by multinationals which could have avoided taxation so far, transferring profits to countries with lower taxation rates, alleged tax havens.

As a result, large corporations, which have previously benefited from taxation reductions, will be forced to pay higher taxes in the countries where they operate and Poland, as a associate European Unionmust adapt its rules to global standards.

What does this mean for the Polish economy?

The introduction of this global minimum taxation is part of wider global reform, which aims to harmonise corporate taxation rules worldwide. It was developed by OECD and supported by over 140 countries, including all EU countries. Poland, as an EU member, had no choice but to adapt its government to global requirements. However, this process was not free from difficulties.

The Polish Government faces any procedural problemsand the European Commission expressed concern about the delays in implementing the fresh legislation. As a result, the case went to EU Court of Justice, due to the fact that not all associate States could agree on the detailed provisions of the reform. However, Poland ensures that the improvement work is on advanced phase And the fresh taxation will enter into force as planned.

New solutions to support companies

Although the introduction minimum global tax means the end of many taxation credits which have so far attracted investors to Polish Special economical Zones, the government announces a fresh solution to support businesses. It'll be cash grant systemwhich aim compensation companies have higher taxation burden.

Cash grants will be awarded according to respective key criteria:

• Investment scale – larger projects will have a chance of higher support.
• Investment location – regions with higher unemployment will be preferred to encourage companies to invest in little developed parts of Poland.
• Quality of projects – peculiar attention will be paid to investments in green technologies and energy transformationwhich is part of Poland's quest to sustainable development.

What do companies gotta do to usage grants?

In order to benefit from the fresh support mechanism, companies will gotta meet certain conditions and the application process will should be transparent and efficient. Ministry of improvement and Technology announces that grants will be awarded in accordance with certain rules to guarantee their effectiveness in attracting investment and economical development.

Impact on SMEs

Although the fresh taxation will apply mainly to large corporations, these changes may besides have indirect impact on SMEs. Higher taxes for large companies may lead to changes in pricing or employment policies, which may affect Labour market and operating costs.

SMEs should follow up on these changes, especially if their activities are in any way linked to large global corporations. It is besides worth remembering that Poland announces further changes in taxation policy, which can affect the full market.

Since 1 January 2025 Poland will implement fresh 15% minimum global taxwhich will only concern the largest companies whose yearly turnover exceeds EUR 750 million. The introduction of this taxation is the implementation of Poland's global obligations under the OECD initiative. Although these changes may make controversy and challenges, they will be alternatively neutral for tiny and medium-sized companies. In addition, a fresh strategy cash grants aims to support companies in adapting to higher taxation burdens.