Polish regulations concerning Pillar Two (BEPS 2.0./global minimum tax): impact on domestic entities and early practical insights.

The British Polish Chamber of Commerce, in cooperation with EY Poland, cordially invites you to attend the workshop:

Polish regulations concerning Pillar Two (BEPS 2.0./global minimum tax): impact on domestic entities and early practical insights.
Possibility of recovering the withholding tax on the interest payments to UK based entities.

I. BEPS 2.0
The workshop will concentrate on the Polish adoption of Council Directive (EU) 2022/2523 regarding the global minimum tax. The top-up tax became effective in Poland on 1st January 2025, requiring capital groups with global consolidated revenues of at least €750 million to settle top-up tax if their effective tax rate (ETR), calculated according to a specific formula in line with Polish regulations, is below 15%. In addition to the risk of an increased tax burden, this new framework entails significant calculation and reporting responsibilities.

The top-up tax holds relevance for companies that benefit from various tax incentives, including those enjoying CIT exemptions in special economic zones or Polish Investment Zones, as well as R&D tax relief.
II. Withholding tax on the interest payments to UK-based entities
In the second part, we will address the possibility of recovering withholding tax on interest payments to UK-based entities.

Following Brexit, the UK is no longer a member of the European Union, which has led most Polish tax remitters to withhold 5% WHT on interest payments to UK-based related entities starting from 2020. Based on our observations and experience, we will explore and describe situations where the withheld WHT may prove recoverable.

Agenda:
Part I: BEPS 2.0
1. Introduction to top-up tax
2. Mechanisms of collection of top-up tax
3. Calculation of top-up tax
4. Substance-based income exclusion
5. Safe harbors
6. Reporting obligations and sanctions
7. Impact on tax reliefs
8. Update on the Ministry of Finance’s work on the new R&D tax credit legislation
9. Practical challenges
10. Q&A session

Part II: Withholding Tax on interest payments to UK-based entities
1. Introduction to relevant legislation
2. Practical implications – entities entitled to apply for recovery of withholding tax.

Speakers:
– dr Filip Majdowski, Director, Tax Advisory, EY
Filip is a tax advisor and holds a PhD in law from the University of Warsaw (with distinction), as well as being the author of numerous scientific publications in Polish and international journals.
Before joining EY, he represented Poland at various international forums, including the OECD and the EU. From 2021 to 2023, he was a member of the OECD Tax Committee (CFA) and the OECD/G20 BEPS Steering Group (Pillar 1 and Pillar 2), actively participating in the negotiations of both pillars. Concurrently, he served as Deputy Director at the Polish Ministry of Finance (2017-2021) and later as an advisor to the Ministry on international tax matters.

– Michał Koper, Partner, Tax Advisory, EY
For over 18 years, Michal has advised clients on investment structuring, reorganizations and transactions. He helps clients run their business and manage the increasing complexity of tax environment and requirements.
He gained experience while working for multinational clients in the EY offices in Warsaw and New York. He is a graduate of the Faculty of Management of Warsaw University and a licensed tax advisor (License No. 11616).

– Aleksander Sipior, Partner, Tax Advisory, EY
For several years, he has specialized in advising on the efficiency of R&D taxation. He has experience in implementing tax incentives such as R&D credits, the IP Box regime, and benefits for creative employees, as well as in investment support and public aid.
He also provides guidance on various issues related to direct taxes, including transfer pricing and tax proceedings. He graduated in law from Jagiellonian University.

– Małgorzata Sękul, Senior Manager, Tax Advisory, EY
Małgorzata holds a master’s degree in Finance and Accounting from the Warsaw School of Economics and in Law from the University of Warsaw. She is a licensed tax advisor and a member of ACCA, having been with EY since 2013.
She has extensive experience in client support and representation during tax audits, tax proceedings, and administrative court cases. Małgorzata also advises Polish and international companies on income taxes, VAT, and tax scheme reporting, and she speaks at various tax-related training sessions.

Participation is free of charge for BPCC members and invited guests.

Please note that the organisers reserve the right to limit registrations from individuals representing competing organisations.

We warmly encourage you to join us for this insightful event!