Global Daily Tax News, Poland Prolongs Consultation On MNE Minimum Tax Law, (May 20, 2024)

The Polish Government has announced a brief extension to the ongoing consultation on domestic legislation for the transposition of the EU's Minimum Tax Directive.

Feedback is being sought by May 24, 2024, at the latest.

The EU Minimum Tax Directive provides that large multinational groups' profits should be liable to a corporate tax rate of at least 15 percent. The rules apply to any group, both domestic and international, with a parent company or a subsidiary situated in an EU member state, if the group's combined annual turnover is at least EUR750m, beginning for fiscal years from January 1, 2024.

If the minimum effective rate is not imposed by the country where the subsidiary company is based, there are provisions for the member state of the parent company to apply a "top-up" tax.

In January, Poland was one of nine member states challenged by the European Commission for failing to transpose the directive into law by the December 31, 2023, deadline, alongside Estonia, Greece, Spain, Cyprus, Latvia, Lithuania, Malta, and Portugal.