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POLAND: CIT Payee List

In accordance with the recently amended corporate income tax (CIT) bill, the Ministry of Finance published tax declarations of the largest companies in Poland. Tax data of enterprises, which generate an annual turnover exceeding EUR 50 million will be updated quarterly. The top 3 contributors of CIT are state-owned companies including PKO BP, KGHM, and PGNiG – alone generating 10% of the total tax income, amounting to PLN 2.6 billion. Only two firms with majority foreign capital qualified to the top 10: the owner of a supermarket chain Jeronimo Martins and the ING BS bank.

The list is part of the government’s policy of increasing budget income from CIT. PiS party representatives have often argued that foreign-owned firms avoid paying tax in Poland by transferring their profits abroad. Publishing financial data is meant exert pressure on foreign-owned companies. Experts suggest that the list will provide a disrupted picture of companies, leading to many misunderstandings. Calculating CIT contributions is a complex process, which cannot be constrained to a sum of profits and losses. Detailed reports are required for full comprehension. Opponents of this system argue that companies will concentrate on maintaining their reputation by showing larger CIT contributions – this, in turn, could affect investment levels.