IGCC Tax and Finance Committee | Top-up Tax in Poland: Latest Practical Experiences, including the Impact on the Effectiveness of Tax Incentives

We invite you to a meeting on the top-up tax in Poland – the latest practical experiences and its impact on tax incentives.

We invite you to the IGCC Tax and Finance Committee meeting dedicated to the top-up tax in Poland, where we will present the latest practical experiences and discuss its impact on the effectiveness of tax incentives.

As of 1 January 2025, Poland has introduced regulations on the top-up tax for entities within corporate groups with consolidated annual revenues of at least EUR 750 million. The Polish regulations implement the agreements reached within the OECD framework as well as the EU directive. In EU member states, these rules have been in effect since 2024 and may also impose obligations on Polish entities. To reduce compliance requirements in other jurisdictions, it is possible to make a retroactive election to apply the Polish rules for 2024 as well.

The top-up tax is applied when the effective tax rate (ETR), calculated under BEPS 2.0 P2 rules, falls below 15%. In this context, it is crucial to assess the impact of available tax incentives, such as SSE, PSI, R&D, and IP Box.

Entities subject to the top-up tax are required to file tax returns and make disclosures in their financial statements. These obligations apply even if the ETR exceeds 15%. The first tax returns will be submitted in 2026, although the disclosure requirement in financial statements applies earlier. If safe harbor conditions regarding the simplified ETR rate, profit and revenue thresholds, or the value of owned tangible and intangible assets are met, it is possible to benefit from administrative simplifications.

The new regulations require establishing procedures for collecting and analyzing data, including defining the responsibilities of individual entities within the group. This is particularly important given the liability of management boards, including criminal liability. Tax penalties for non-compliance can reach up to PLN 40 million.

It is now necessary to make a decision regarding the application of the Polish regulations to 2024 and to establish procedures for data collection and analysis in order to fulfill obligations related to calculation, reporting, and potential tax payment.

During the meeting, EY experts will share practical experiences, including in the areas of:

• Key mechanisms of the top-up tax, including collection rules,
• Sources of data and information necessary for calculations (both full and simplified),
• Reporting obligations,
• Mechanisms mitigating the negative impact of the top-up tax,
• Legislative trends at the international (OECD, EU) and national level, and
• Practical challenges related to the new regulations, as well as implementation experiences.

Particular attention will be given to the impact of BEPS 2.0 P2 on the effectiveness of tax incentives.

The meeting will be led by EY Poland experts:

• Dr. Filip Majdowski, Director, Tax Advisory Services, EY Poland; former BEPS 2.0 negotiator on behalf of the Polish Ministry of Finance; member of the OECD/G20 BEPS 2.0 Steering Committee (2021–2023).
• Michał Koper, Partner, Tax Advisory Services, EY Poland.

Contact : Justyna Rogalińska-Smolak, justyna.smolak(@)ccifp.pl

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