International taxes in brief: September

Poland:New tax measures
Poland’s Ministry of Finance released a draft bill proposing preferential tax treatment for income from intellectual property rights and lower corporate tax on small and medium-sized enterprises. The tax measures are expected to take effect on 1 January 2019. The proposed patent box regime would introduce a reduced tax rate of 5 percent for income derived from qualifying IP rights. The preferential tax regime would cover cases in which a taxpayer conducts research and development activities related to the development, creation, or improvement of a qualifying IP right. The draft measures would also introduce a reduced corporate income tax rate of 9 percent for SMEs with annual turnover of no more than €1.2 million and a notional interest deduction, subject to an annual cap of PLN 250,000. An exit tax would also be implemented in accordance with the EU anti-tax-avoidance directive.

Guernsey and Jersey: New rules for demonstration of economic substance
Guernsey and Jersey are consulting on proposals to apply for accounting periods beginning on or after 1 January 2019, requiring tax resident companies to demonstrate they have sufficient substance. The proposed substance requirements, outlined in detail in the Jersey consultation paper, include several relevant activities that companies operating in the specified fields will need to detail on their tax returns. Those include the amount and type of gross income, type of expenses and assets, details about physical premises, and number of full-time employees. Companies must also demonstrate that they are directed and managed in their tax-resident jurisdiction, and the Jersey consultation provides different ways for companies to do so.

The article is part of dReport – October 2018, Tax news; Grants and investment Incentives.