Poland Passes Deferred Profit Tax, Strengthens Anti-Avoidance

Poland will allow smaller companies to defer corporate taxes until profits are distributed and introduce corporate income tax for flow-through entities from 2021, under end-of-year tax measures finalized over the weekend.

The measures also introduce minor anti-tax avoidance changes such as mandating the reporting of corporate tax policies for corporations with annual revenues exceeding 50 million euros ($60 million). They were adopted by Parliament and signed by President Andrzej Duda on Saturday .

The new deferred profit tax regime, known in Poland as ‘Estonian corporate income tax’, because it mimics Estonian law, gives companies with annual operating revenue of up ...