The Tax Ordinance Act (‘Draft bill No. 367’ or ‘the draft bill’), if enacted, would introduce general anti-avoidance rules (GAAR) into Polish tax law. Polish authorities have discussed the bill since 2014, and it has been accepted by the Polish Parliament. The bill is expected to be referred to the Polish President for enactment into law.
Earlier this year, Poland introduced an anti-abuse clause in accordance with the European Union (EU) Parent-Subsidiary Directive as amended by Council Directive no. 2015/21. However, those provisions apply only for withholding income tax exemption purposes related to dividends paid to residents of EU member states. There currently are no broader GAAR provisions in Poland’s tax law. If enacted, the new GAAR legislation would allow the Polish tax authorities to recharacterize, for tax purposes, transactions designed with the main purpose to gain tax benefits or disregard the translations that do not have any real economic or business rationale other than tax avoidance.
The Polish Parliament intends to make the draft bill effective before Summer 2016.
Global International Tax Services Leader, PwC US