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Poland: Corporate Taxation Changes

(Nov. 25, 2013) Poland’s Parliament (Sejm) voted on November 8, 2013 to approve a proposed law amending the Corporate Income Tax Act. It will become effective 30 days after it is approved by the president and officially published. (Magdalena van Doom-Olejnicka, Poland: Partnerships Become Corporate Entities – Parliament Passes Amendments to Corporate Income Tax Law, TAX RESEARCH PLATFORM (Nov. 19, 2013), International Bureau of Fiscal Documentation online subscription database.)

The Sejm debated the proposed amendments in September 2013, at which time the provisions governing taxation of partnerships were considered. (Magdalena van Doom-Olejnicka, Poland: Future Legal and Tax Status of Partnerships Under Parliamentary Debate, TAX RESEARCH PLATFORM (Sept. 19, 2013), International Bureau of Fiscal Documentation online subscription database.) While originally two kinds of partnerships, spólki komandytowo-akcyjne (partnerships limited by shares) and spólki komandytowe (limited partnerhips) were to be recategorized under the amended legislation as corporate entities, the upper chamber of the Sejm voted to only include partnerships limited by shares. Therefore, those partnerships, but not limited partnerships, will become subject to Poland’s corporate income tax. (Poland: Partnerships Become Corporate Entities – Parliament Passes Amendments to Corporate Income Tax Law, supra.)

A partnership limited by shares has been defined as a body that combines the “structures of a stock corporation (AG) and a limited partnership … . It connects the entrepreneurial commitment and personal standing of the individually liable shareholders (general partners) with the function of the AG as a public company and source of capital. … [a partnership limited by shares] can be described as a stock corporation having individually liable shareholders (general partners) instead of a management board.” (Partnership Limited by Shares (KGaA), GERMANY TRADE AND INVEST (last visited Nov. 22, 2013).)