As a result of the amendment, limited partnerships will be able to choose if they are taxed as corporate taxpayers as from 1 January 2021 or as from 1 May 2021. If the company chooses the later date, it will have to close its accounting books on 30 April.
Moreover, the possibility to settle future losses from the activities of a limited partnership has been extended. Initially, only general partners were to benefit from it, but now limited partners will also have this possibility. Deprivation of this right could lead to their unequal treatment.
According to the draft provisions, general partnerships have the possibility to avoid corporate income tax, provided that they submit information, inter alia, on their partners. The introduced amendments clarify the deadlines for the submission of such information, and if such deadlines are not met, the general partnership will automatically become a payer of corporate income tax.
As part of the work of the parliamentary committee, the definition of a real estate company was clarified. As a result, the new reporting obligations will apply to companies holding real estate with a balance-sheet value exceeding PLN 10m and companies whose revenue from the lease, sub-lease, rental or leasing of such real estate (or other agreements of a similar nature) constitutes at least 60% of their total revenue. The amendment will exclude from the new obligations the entities using the real estate for their own needs.
The provisions to be introduced from 1 January 2021 also refer to the liquidation of the tax abolition relief for natural persons. According to the amendments submitted, not only people up to the age of 26 will be able to take advantage of the tax exemption, but also other people who have income from graduate traineeships and school internships.
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