Services provided by the shareholder to the company excluded from tax costs starting from 2022

In accordance with the draft amendments to the Polish Corporate Income Tax Act, which are to enter into force on January 1, 2022, the Ministry of Finance wants to exclude from tax costs the expenses for benefits for shareholders and related entities in case of:

– payments not related to the conducted business activity,

– transactions of a non-market nature,

– taxpayer’s excessive debt towards related entities,

– the use by the taxpayer of assets belonging to shareholders or related entities that originally belonged to the taxpayer.

In opinion of the Ministry of Finance, such benefits are hidden dividends and should be excluded from tax costs. The planned restriction may include, for example, remuneration paid to shareholders or related parties for:

– advisory services and other specialist services,

– real estate rental services,

– rental services of machines, cars and other movables.

Experts point out that the provisions of the draft are imprecise and will primarily hit family businesses.