On March 1, 2021, an Announcement of the Minister of Finance, Funds and Regional Policy dated February 26, 2021 was published in the Monitor Polski on the announcement of the list of countries and territories indicated in the EU list of non-cooperative jurisdictions for tax purposes adopted by the Council of the European Union, which are not included in the list of countries and territories applying harmful tax competition issued under the provisions on personal income tax and provisions on corporate income tax, and the date of adoption of this list by the Council of the European Union.
As a result, as of March 1, 2021, a new list of territories and countries applying harmful tax competition, i.e. so-called tax havens for the purposes of the provisions on reporting tax schemes (MDR), is in force. Currently, the list includes 26 countries and territories indicated in the Regulations of the Minister of Finance of March 28, 2019 on the determination of countries and territories applying harmful tax competition in the scope of corporate income tax and corporate income tax and 5 countries and territories specified in the aforementioned notice.
It should be remembered that, pursuant to Article 86a § 1 point 13(a) of the Tax Ordinance in connection with Article 86a § 1 point 10(b) of the Tax Ordinance, cross-border payments between related parties that are deductible as tax deductible costs constitute a tax scheme if the payee has its place of residence, seat or territory in a country with harmful tax competition or if the payee has no place of residence, seat or territory in any country.
Author: Paweł Rosiński – Tax Advisor