1) Personal Income Tax
The government has suggested that the personal income tax rates be reduced to 20%, 31% and 43%. The government has accepted the Finance Minister's suggestion to abandon certain tax reliefs, including the purchase of treasury bonds and donations for the benefit of natural persons.
2) Capital Groups
Due to the complete absence of registrations of capital groups, some loosening of restrictions has been proposed. These include not having to reinvest 50% of after tax income, not having to individually account for the entire period of the groups existence where capital group status was lost, and a relaxing of the requirement for the dominant company to hold 100% of subordinate companies' capital. However, various Sejm Committees have responded negatively to these proposals.
3) Corporate Income Tax
One of the most important proposals is that of reducing the corporate tax rate from 40% to 32% by the year 2000. However, the deputies rejected the proposal to reduce the rate to 38% from 1997. On the positive side, a government proposal to reduce investment reliefs has also been rejected.
All of these issues are currently undergoing the complete legislative process; KPMG will endeavour to keep you informed as any changes become more certain.
Tax laws and practise are constantly being revised and, whilst every effort is made to ensure that the information in this tax newsletter is accurate and timely, no decision should be taken on the basis of the information herein without first consulting with KPMG Polska.
Should you have any questions in relation to the above issues, please contact:
Oliver Sinton KPMG Polska LIM Center - Marriott Hotel - IX floor Al. Jerozolimskie 65/79 00-697 Warsaw, Poland Tel: +48 (22) 630 7236 Fax: +48 (22) 630 6355
This information was correct as of 2 October 1996.
