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On 25 April 2024, the Polish Ministry of Finance published a draft act on top-up tax levied on constituent entities of multinational and domestic groups, which implements Council Directive (EU) 2022/2523 on global minimum tax, more widely known as Pillar 2. However, not every entity will be subject to top-up tax, and this means that the support of experienced tax advisors may be beneficial in analysing whether or not the company will be affected by the global tax.
The Polish draft act which implements Pillar 2 provides for the introduction of three types of top-up tax:
- the income inclusion rule – IIR (Polish name: globalny podatek wyrównawczy),
- the qualified domestic minimum top-up tax – QDMTT (Polish name: krajowy podatek wyrównawczy),
- the under-taxed profit rule – UTPR (Polish name: podatek wyrównawczy od niedostatecznie opodatkowanych zysków).
The new rules are to take effect as of 1 January 2025, with the possibility to apply them voluntarily from 1 January 2024.
RSM Poland's tax advisors will help you to analyse the main implications and impact of Pillar 2 on your business activity in Poland
The new regulations introducing the above taxes impose completely new obligations which taxpayers will have to meet. One should prepare to the upcoming changes in advance, as a lot of detailed data will be required.
That is why it is beneficial to take advantage of our experts' knowledge already today, who will help you find your way in the maze of the new regulations, and offer complete support in following the global minimum tax rules.
Our services: How do we help companies to settle into the global minimum tax mechanisms and rules?
As part of the implementation of global top-up tax, we offer the following services of our tax advisors. To facilitate compliance with Polish regulations:
- we will verify whether or not the company will be subject to top-up tax – as part of our services, we will check if the examined company belongs to a group to which the new regulations apply or if it is an exempt entity. We will also examine the possibility of benefiting from safe harbours set out in the draft act (both permanent and transitional). Additionally, we will help you to identify and implement processes which simplify verification of the group's obligations within the scope of global minimum tax;
- we will help you to gather the data required under Pillar 2 – we will support you in identifying and completing the data which are necessary to fulfil the new tax requirements related to Pillar 2. Additionally, we will help you to identify the roles of individual constituent entities of the group, so that the obligations of a particular company are clearly defined;
- we will establish the tax basis taking into account any potential deductions – in analysing the impact of the Pillar 2 Directive on the company, we will make the necessary calculations to determine the tax basis for global minimum tax taking into account all deductions or simplifications indicated in the draft act;
- we will determine the amount of top-up tax – on the basis of data received or calculations made, we will help the company to determine the amount of global minimum tax due;
- we will help to assess any potential doubts or risks associated with global minimum tax – we will help the company to identify areas of increased risk and put forward our recommendations and proposed solutions adjusted to your company's situation;
- we will prepare or verify tax returns or top-up tax information returns – after model forms for top-up tax reporting are published in the future.
We will also continuously monitor all changes concerning global minimum tax. RSM Poland's tax advisors will analyse the impact of such changes on your company in order to guarantee that the company fulfils its obligations in an appropriate manner.
How exactly can we help you? And what makes us a reliable partner in conducting business activity in Poland? Contact us – we are glad to discuss our offer of personalised solutions tailored to your company's needs.
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