The government will introduce a fresh tax. It is intended to affect the competitiveness of the Polish economy

In Poland, a alleged global minimum taxation is to be introduced from next year, which will be based on 3 pillars: global and national taxation and taxation on undertaxed profits. The draft amendment appeared on the pages of the Government Legislative Centre and is an expected implementation of the EU Directive, which aims to set a global minimum level of taxation for global business groups and large national groups in the European Union.

The document, which includes a draft law on compensatory taxation of global and national group components, is extensive, has more than 150 pages and contains more than 150 provisions. It should be stressed at this point that the levy, besides called the minimum tax, is intended to counter the transfer of profits between countries in order to avoid taxation by global giants.

Despite erstwhile expectations, Poland failed to implement the directive this year, as suggested. Instead, a minimum taxation has been planned since 2025. This is simply a complicated and demanding plan that assumes a completely fresh taxation system. The fresh strategy will be based on 3 key elements: a global and national compensatory taxation and a taxation on undertaxed profits.

Implementation of the EU minimum taxation regulation in practice will mean that many taxation systems request to be revised. In fact, this will bring about changes in economical strategy, where the taxation strategy played an crucial role, especially in Poland. The introduction of a minimum taxation may besides consequence in a simplification in Poland's competitiveness, which has so far applied various taxation incentives to investors.

Irrespective of circumstantial details on the way the global minimum taxation is taxed in Poland, the government must besides take into account the competitiveness of our economy.

It is besides worth noting that in Poland besides regulations introducing a minimum income tax.

In fact, the introduction of a global minimum taxation and the maintenance of a minimum income taxation at national level will impose these taxation burdens on taxpayers. This could lead to complications and negative consequences for individuals and companies.

The Ministry of Finance has announced that interior analyses have been carried out in connection with these regulations, but the deficiency of concrete action so far may make uncertainty and confusion among taxpayers. It is crucial that the taxation rules implemented take account of the various aspects and consequences for all stakeholders, ensuring a balance between the fiscal needs of the State and the interests of taxpayers. It would so be crucial to clarify these plans for the clarity of the taxation strategy and to guarantee stableness for taxpayers.

Daniel Głogowski

Expert in his field – Publicist, author and social activist. The first articles were published in 1999 for global publishers. For more than 30 years, he has gained his experience through cooperation with the largest editorial offices. In his articles, he seeks to address controversial topics and present first viewpoints that allowed for a deeper knowing of the issues discussed.