Draft amendment to the act on CIT for 2013

A draft amendment to the act on corporate income tax (CIT) for 2013 was recently published on the website of the Government Legislation Centre – a body that contributes to the writing and revision of laws proposed by the government. The draft, if adopted, would introduce limitations on some types of tax optimization – among them so-called “thin capitalization,” by which companies maximize tax deductions by including interest payments on debt taken on by affiliated companies. Currently, such deductions are limited to threefold the amount of initial capital, and these limits apply to companies that are directly related. The new legislation would extend these limitations to companies that are indirectly related. The draft also would expand the number of companies who pay CIT, by including limited joint-stock partnerships.

New legislation to keep telecoms from lowering internet speeds

The Sejm, Poland’s lower house of parliament, is working on an amendment to the country’s Telecommunication Law. The draft would bring Polish law in line with some EU provisions. One proposed change looks to protect end users by preventing telecoms from lowering their clients’ internet data speeds below what is stipulated in the given contract or regulations. The president of the Office of Electronic Communications (UKE) will be allowed to object to the method telecoms use to measure the data-transmission speed, and will be allowed force a given telecom to use a particular measurement method.

Change of supervision over cooperative savings and loan associations

On October 27, an act on cooperative savings and loan associations will come into force. The main goal of the act is to introduce national supervision over such associations by transferring supervisory powers, detailed decisions on permissible risk levels and investment policy to the Polish Financial Supervision Authority (KNF). Moreover, the KNF will supervise activities related to the establishment of such associations by requiring permits for founding such an association and for approving its statutes. The solvency ratio of the associations will be set at the level of at least 5 percent.

Brought to you by Peter Nielsen & Partners law office

Contact:  Mirosław Stefanik

ms@pnplaw.pl