On October 4, the Silesian Museum in Katowice hosted a conference to finalize key issues related to the implementation of the provisions of Council Directive (EU) 2022/2523, which introduces a global minimum level of taxation (GMT) for multinational corporate groups and large national groups in the European Union. The event was hosted by the Ministry of Development and Technology and the Katowice Special Economic Zone S.A.
– Poland is in an area of great interest to foreign investors. We are committed to developing a system of rules that will allow us to continue to operate and continue to effectively attract large investors to Poland – stresses Jacek Tomczak, Secretary of State at the Ministry of Development and Technology.
– The topic of today’s conference is the future of the Polish Investment Zone under the conditions of implementation of the regulations on the global minimum tax. We have invited to the discussion representatives of business, government administration and economic zone managers from all over Poland – says Dr. Rafal Zelazny, President of the KSSE.
The topics of the meeting focused on the potential effects of these regulations on the mechanism of the Polish Investment Zone (PSI) and Special Economic Zones (SEZs). Representatives of the Ministry of Development and Technology managing the zones, investors and experts discussed the challenges and opportunities presented by the new tax reality. We are currently facing the implementation of the provisions of Council Directive (EU) 2022/2523 of December 14, 2022. The changes resulting from the implementation of the Directive should be limited to the largest companies, but it cannot be ruled out that the impact of the new regulations may be broader. As a rule, the new regulations will affect the largest entities, including investors operating within special economic zones – specifically, within the Polish Investment Zone. Implementation is the first step, the next step should be the adjustment of Poland’s tax investment incentives in the context of EU/OECD regulations.
Work is underway to implement the regulations implementing the directive in Poland. A draft bill was submitted to the Sejm at the end of September this year. The legislative process, taking into account the comments of entrepreneurs made during public consultations, is likely to be completed by the end of 2024. The aim of these regulations is to develop a global solution that will prevent the negative consequences of tax avoidance and the transfer of profits by multinational corporations to countries offering more favorable tax conditions and often using unfair tax competition. One of the efforts is the “Pillar Two” project (also “GloBE”), which aims to develop rules that would provide jurisdictions with the right to “tax refunds” when other jurisdictions have not exercised their basic tax rights or the payment is subject to low levels of effective taxation.
The new regulations – complex and affecting a limited group of the largest investors, however – will certainly not be without an impact on the operations of zone companies. Entrepreneurs taking advantage of tax exemptions bear the real costs of making investments in the country. In turn, the aid itself depends on the business profit generated – a kind of “success bonus.” On the one hand, active and successful entrepreneurs are rewarded, while on the other hand there is concern that the new regulations will weaken the possibility of attracting new investments.
The initiator of today’s meeting together with the Ministry of Development and Technology is the Katowice Zone, the conference was attended in large numbers, directly interested in the topic by investors, representatives of the management boards of other economic zones in Poland, as well as other business environment institutions, including the Polish Investment and Trade Agency SA.
Source: www.ksse.com.pl