Alert On Key Recent Changes To Polish Tax Legislation

Dear All,

With reference to our meeting in Amsterdam I hasten to update you with respect to the most recent legislative changes and practical aspects of Polish tax legislation, which we believe may be seen as being of importance also for multinational companies, including your clients.

1. Modifications of double tax treaties with Cyprus and Luxembourg
   
   Poland has modified its double tax treaties with Cyprus and Luxembourg. The key amendment relates to the introduction of real estate clauses to those treaties, according to which transactions on shares in companies holding directly or indirectly (through subsidiaries) real properties in Poland are subject to taxation in Poland (note that the amendment to the treaty with Luxembourg has not yet entered into force). Since the majority of real property vehicles in Poland have been controlled through Luxembourg-based holdings we may see the need for a transfer of such holding vehicles to more advantageous