Prezentacja programu PowerPoint

1
Introduction to Polish Tax Law
Prof. W. Nykiel Centre of Tax Documentation and
Studies University of Lódz
2
Part I

• Glossary

3
Tax

• compulsory unrequited payment to the government
• (OECD working definition)

4
Unrequited

• benefits provided by government to taxpayers are
  not normally in proportion to their tax payments

5
Return

• tax declaration (usually a completed official
  form) by which a taxpayer reports income, sales
  and other details and calculates his/her tax
  liability

6

• Direct taxes
• Indirect taxes

7
Income tax

• tax imposed on income received which is
  recognized for tax purposes by taxpayer, reduced
  by the allowable deductions, exemptions and
  credits

8
Income tax

• Income tax on individuals
• (Personal income tax,
• Individual income tax)

• Income tax on legal entities
• (Corporate income tax)

9
Withholding tax

• tax on income imposed at source, i.e. a third
  party is charged with the task of deducting the
  tax from certain kinds of payments and remitting
  the amount to the government

10
Turnover tax

• general term used to refer to the different forms
  of consumption and sales taxes

11
Turnover

• gross receipts, gross amounts due, from the sale
  of goods or services supplied by the entity

12
Value added tax

• specific type of turnover tax levied at each
  stage in the production and distribution process

13
Excise duties (Excise tax)

• taxes typically charged on products such as
  alcohol, tobacco and motor fuels

14
Death duties

• taxes imposed on the transfer of property on
  death (death duty, inheritance tax, succession
  duty, tax on transfers by death)

15
Gift tax

• tax imposed on gratuitous transfer of property
  among the living,
• levied by reference to the value of a single gift
  or cumulative gifts during a certain period of
  time

16
Property tax

• tax imposed on owned
• tangible movable or immovable property or both

17
Immovable property tax,Land tax,Rural
property tax,Urban property tax
18
Residencepersonal attachment to the state
19
Nationality additional (to residence)
basis of subjecting an individual to taxation
20
Residence

• Individuals

• Companies

21
Source and situs
22
Tax liability

• Unlimited tax liability
• Limited tax liability

23
Juridical double taxation

• one person is subjected to taxation twice in
  respect of the same income

24
Economic double taxation

• imposition of comparable taxes on different
  taxpayers in respect of the same taxable income

25
Methods of relievingdouble taxation

• Exemption method
• Credit method
• Deduction method

26
Part II

• Tax System in Poland

27
Tax System in Poland

• Main elements and main features of tax system in
  Poland
• Tax liability

28

• Until 1989 the Polish tax system differed
  substantially from systems functioning in states
  with a market economy. These differences
  concerned among other
• basic principles of the tax system that were
  connected with the economic and political regime,
• sources of tax law,
• structure and function of the most important
  taxes,
• fiscal procedure,
• tasks and role of fiscal administration,
• behaviour of the taxpayers.

29

• The structure of budget revenues was also very
  different from the ones existing in states with a
  market economy. The nationalised sector was the
  main source of income for the budget. The most
  important resources came from nationalised legal
  entities such as state enterprises and
  co-operatives. Taxes levied on the private sector
  of the economy were of very limited importance
  mainly due to their size. Taxes levied on the
  population were also of minimal significance.

30

• The reform of the tax system in Poland started in
  1989 with the introduction of uniform corporate
  income tax regardless of the form of ownership
  thus realizing the principle of fiscal equality.
  This tax was based on solutions existing in
  countries with a market economy including those
  existing in member states of the European
  Community.

31

• The reform went on with the adoption of the
  Corporate Income Tax Act of 15 February 1992
  currently in force. The act was amended many
  times, which provoked criticism by
  representatives of doctrine and practice. On the
  other hand, it must be emphasised that these
  changes substantially improve the very structure
  of the tax and make it similar to modern
  solutions existing in states with an advancely
  developed tax system.

32

• Examples of such solutions are as follows
• according the status of a taxpayer to a capital
  group,
• introducing new solutions, based on OECD
  recommendations, concerning associated
  enterprises and profit shifting,
• introducing thin capitalisation rules.

33

• The adoption of the Personal Income Tax Act of 26
  July 1991 was the next step of reforms of the
  Polish tax system. This act contained principles
  of equality and commonness of taxation, replacing
  a whole range of acts concerning five other taxes.

34

• This act, which came into force on 1 January
  1992, had effect on several millions of people
  who became taxpayers of a new tax. It also
  created new tasks for the fiscal administration.
  Due to principles governing the very structure
  and collection methods of this tax, the situation
  of taxpayers in Poland became to a large extent
  similar to that of taxpayers in states with a
  market economy

35

• Within the period from 1989 to 2006 Poland
  concluded 57 treaties on the elimination of
  double taxation within the field of income and
  capital taxation. This constitutes more than 3/4
  of all bilateral treaties on elimination of
  double taxation concluded by Poland. These
  treaties are based on the OECD model convention.
  Concluding these treaties is the result of
  development in the field of economic
  co-operation. Moreover, it indicates an evolution
  of our tax system and depicts the direction of
  this evolution.

36

• Introduction of the tax on goods and services
  (Polish VAT) into fiscal system constituted a
  huge challenge for the Polish legislator. Works
  on construction of this tax lasted for several
  years and were inspired by solutions existing in
  European law, especially in the Sixth Directive
  (77/388/EEC) These works resulted in the adoption
  of the Tax on Goods and Services and Excise
  Duties Act of 8 January 1993.

37

• At the beginning, both the fiscal administration
  and taxpayers were quite confused as to the
  application of new solutions. This was due to the
  scope and complexity of the regulation (the Act,
  which came into force on 5 July 1993, was
  accompanied by a huge number of executory
  regulations), to the completely new legal
  structure of the tax and some legislative
  shortcomings.

38

• The analysis of the budgetary revenues structure
  shows clearly that the two direct taxes (personal
  income tax and corporate income tax) and the two
  indirect taxes (tax on goods and services the
  Polish VAT - and excise duties) constitute the
  core of our fiscal system bringing 86 (2005) of
  income to the state budget.

39

• Besides the abovementioned taxes, there also
  exist the tax on games and the tonnage tax, which
  go to the state budget.

40

• Furthermore, the whole range of taxes flows into
  communal budgets. These are
• immovable property tax,
• agricultural tax,
• forest tax,
• tax on means of transport,

41

• tax on the possession of dogs,
• heritage and donation tax.
• tax on civil law acts such as different
  contracts.

42

• Among local taxes the one on immovables is of
  greatest importance, as in many other states. The
  proposed changes aim at establishing the value of
  land and buildings as the basis of taxation.
  Currently the taxable basis in case of buildings
  is their usable surface and in case of land its
  surface.

43

• In rural communes the agricultural tax plays an
  important role.

44

• In 1997 the General Tax Law was adopted. It
  contains rules focusing on fiscal liabilities and
  fiscal procedure.

45

• It is estimated that the Polish tax system
  suffers a whole range of shortcomings that should
  be eliminated. The most important ones include
• high complication and lack of clarity leading to
  significant enforcement difficulties for both the
  taxpayers and fiscal administration,
• lack of stability.

46

• Poland has become a member of the European Union
  on 1 May 2004.

47

• On 1 May 2004 both the new Tax on Goods and
  Services Act and Excise Duty Act came into force
  implementing the Council directives in Polish
  domestic regulations covering these taxes.

48

• During the last period before our accession
  to the EU, Polish legislator concentrated on
  changing Polish tax law mainly in line with
  standards derived from the relevant EU
  directives.
•  

49

• These works did not sufficiently include analysis
  of compatibility of Polish legislation with the
  provisions of the EC Treaty, especially the ones
  devoted to four freedoms.

50
General Tax Law

• Tax liabilities
• Tax proceedings

51
Tax Liability

• Tax Liability is a taxpayers obligation to pay
  tax for the benefit of the State Treasury or
  commune (gmina)

52
TAX LIABILITY

• Art. 21 GTL
• Tax liability arises on the day
• the event with which a tax statute associates the
  arisal of such liability occurs (tax liability
  arises ex lege),
• a tax authoritys decision determining the amount
  of such liability is served (tax liability arises
  by administrative decision)

53

• If tax liability arises ex lege, the tax
  indicated in tax return shall be the tax to be
  paid

54

• Self-assesment
• The taxpayer is required to report the basis of
  assesment, to calculate the tax due and to pay
  the tax

55

• If a tax authority finds (as a result of tax
  proceedings) that the amount of tax liability is
  different than indicated in return, the tax
  authority shall issue decision that specifies the
  amount of tax

56

• Tax return - the form on which a taxpayer reports
  income, sales and other details and calculates
  his/her tax liability

57

• VAT return
• VAT payable on outputs
• VAT recoverable on inputs
• net amount VAT due to or from the authorities

58

• Joint return - return filed jointly by both
  spouses

59

• The joint taxation of spouses is regulated in
  Articles 6 and 6a of the Personal Income Tax Act.
  As a rule, the incomes of spouses are taxed
  separately. Spouses may however be taxed jointly
  on the sum of their income

60

• The Constitutional Tribunal in its judgment of
  4th of May 2004 (sygn. akt K 8/03) found Article
  6 sec. 2 of Personal Income Tax Act incompatible
  with the constitutional principle of democratic
  state of law and principle of care and protection
  by State over marriage and family in that part in
  which it prohibits the joint taxation of spouses
  after a death of one of them.

61

• Information and calculation return
• Information return

62

• Information and calculation return
• facts, events,
• taxpayers choices,
• calculation of the tax,
• informations about taxpayer.

63

• Tax return - declaration of knowledge

64

• Taxpayer has the right to correct a tax return
• This right is suspended for the duration of tax
  proceedings

65

• Art. 293 GTL
• Individual data contained in tax returns and
  other documents filed by taxpayers are covered by
  fiscal confidentiality

66

• The whole Section VII of the GTL deals with the
  fiscal confidentiality (fiscal secret). The
  following issues are regulated there
• the scope of tax secret,
• the subjects under duty to observe secrecy,
• the access to the tax information in an ongoing
  tax proceedings,
• the way of storing of certain data,
• the rules for passing information on taxpayers to
  other parts of the tax administration, courts,
  prosecutor etc.,
• the passing of the tax information to the tax
  authorities of other states (Section VIIa),

67

• The right of privacy is literally expressed in
  the Constitution of the Polish Republic.
• Article 47 Everyone has a right to the legal
  protection of his private life....

68

• Article 51 having broader purport is connected
  with this regulation. It provides that Nobody
  can be obliged on other than statutory basis to
  disclose information concerning himself (passage
  1).

69

• Public authorities cannot acquire, store and
  render accessible other information concerning
  citizens than is necessary in the democratic
  state governed by the principle of the rule of
  law (passage 3).

70

• It is only the statute which can impose the
  obligation to disclose the information. Moreover,
  this is the statute which determines the rules
  and the course of storing and rendering the
  information accessible (passage 5).

71

• The forms of tax returns are prepared and
  published by the Ministry Finance
• They are to cover only data necessary from the
  point of view of a particular tax

72

• It is widely adopted principle that burden or
  onus of proof is on taxpayer to declare his
  taxable income or transaction.

73

• In Poland as it is the case in the other
  countries the taxpayer is obliged to keep tax
  books (accounting books) and submit declarations.
• However in tax proceedings a tax authority is
  obliged to collect and comprehensively consider
  all evidentiary material.

74

• Evidence may have the form of (in particular)
• Tax books
• Tax returns
• Testimony of witness
• Expert opinions
• Materials and information gathered as a result of
  inspections

75

• Tax books kept reliably and in a non-defective
  manner shall constitute evidence of that what is
  to be derived from entries contained therein

76

• A tax authority shall assess whether a given
  circumstance was proven on basis of the
  evidentiary material collected

77

• During tax control tax authorities have in
  particular the right to
• Access premises of the taxpayer (e.g.
  land,office, appartment in circumstances
  mentioned by law)
• Require books and other documents connected with
  the control proceeding,
• Gather materials connected with the scope of the
  control,
• Secure evidence gathered during control,

78

• The taxpayer may obtain a binding ruling from the
  Minister of Finance
• The binding ruling may cover not only future but
  also past periods

79
Part III

• Tax on goods and services Polish value added tax

80

• During the period of the
• so-called real socialism there were two turnover
  taxes in Poland turnover tax on the entities of
  nationalised economy and turnover tax on the
  entities of non-nationalised economy. They
  existed until 1993.

81

• In 1993 a tax on goods and services was
  introduced.

82

• During the works on this tax, European solutions
  were taken into account to a great extent,
  however its construction differed greatly from
  the European standards.

83

• The Act of 11th March 2004 on Tax on Goods and
  Services section I general provisions, II scope
  of taxation, III taxpayers, IV tax liability, V
  place of supply, VI taxable amount, VII tax on
  imported goods, VIII tax rates, IX deduction and
  refund of tax, partial deduction, X registration,
  returns and summary information, payment of tax,
  XI documentation, XII special procedures, XIII
  amendments to provisions in force, transitory and
  final provisions.

84

• The taxable transactions cover
• Supply of goods for consideration and supply of
  services for consideration on the territory of
  Poland.
• Export of goods.
• Import of goods.
• Intracommunity acquisition of goods for
  consideration on the territory of Poland.
• Intracommunity supply of goods.

85

• The supply of goods means the transfer of the
  right to dispose of goods as owner.

86

• The supply of services is any performance for an
  individual, legal entity and entity having no
  legal personality, which does not constitute a
  supply of goods.

87

• In connection with the accession to the EU and
  the introduction of notions of intracommunity
  supply and intracommunity acquisition, the
  notions of import and export have different
  meaning than so far. Today they refer only to
  sale and purchase of goods to or from outside the
  EU.

88

• Taxpayers include legal entities, entities with
  no legal personality and individuals that
  independently carry out economic activities,
  regardless of the aim or results of these
  activities.

89

• The economic activities comprise all activities
  of producers, traders and persons supplying
  services, including mining and agricultural
  activities, activities of the professions, also
  when the activity was performed only once but in
  circumstances suggesting the intention to perform
  this activity on a continuous basis. The
  exploitation of tangible or intangible property
  for the purpose of obtaining income, performed on
  a continuous basis, is also considered an
  economic activity.

90

• Tax liability arises at the moment of delivery of
  goods or performance of services. However, if
  delivery of goods or performance of services
  should be confirmed by an invoice, tax liability
  arises at the moment of issuance of the invoice,
  no later thought than 7 days after the goods were
  delivered or the services were performed.

91

• Small taxpayer (taxpayer, whose value of sale did
  not exceed during the last tax year amount equal
  to 800 000 Euros) may choose the tax accounting
  method according to which tax liability arises
  when the whole or part of the payment is
  effected, no later however than on the 90th day
  from the delivery of goods or performance of
  services.

92

• The place of supply is in the case of
• goods dispatched or transported the place
  where the goods are at the time when dispatch or
  transport to the person to whom they are supplied
  begins,
• goods which are installed or assembled the
  place where the goods are installed or assembled
  (simple activities which make it possible for the
  installed or assembled goods to function in
  accordance with their nature, are not considered
  to be installation or assembly),
• goods not dispatched or transported the place
  where the goods are when the supply takes place,
• supply of goods to the ship, airplanes or trains
  during the part of passenger transport effected
  at the territory of the Community - the place
  where the passenger transport began.

93

• In the case of the following services
• in the field of culture, art, sport, science,
  education or entertainment,
• ancillary transport activities such as loading,
  unloading, handling and similar activities,
• valuation of movable tangible property,
• work on movable tangible property,
• the place of supply of services is the place
  where those services are physically carried out.

94

• The taxable base in the tax on goods and services
  is the turnover. The turnover is amount due from
  sales minus the tax due.

95

• Taxable base in case of import is customs value
  plus customs duty due. However, if the subject of
  import are goods on which excise duty is levied,
  the taxable base is customs value plus the
  customs duty due and excise duty.

96

• The basic rate of the tax on goods and services
  is 22. The law indicates when rates of 7 , 3
  and 0 apply.

97

• Reduced rate of 7 applies to goods and services
  of special social importance (e.g. foodstuffs,
  books, newspapers, some health-care products,
  services connected with agriculture and forestry).

98

• Reduced rate of 3 (applicable until 30th April
  2008) applies to agricultural products and
  unprocessed food products (e.g. products of meat
  industry with the exception of meat preserves,
  poultry products, fishery products with the
  exception of tinned fish food, milk, honey,
  products of field and meadow cultivation,
  products of animal farms).

99

• 0 rate is applied to export, intracommunity
  supply of goods and to some other activities.

100

• In so far as the goods and services are used for
  the purposes of taxable transactions, the
  taxpayer shall be entitled to reduce the amount
  of the output tax by the amount of the input
  tax...

101

• As a rule, the right to reduce the output tax by
  the amount of the input tax arises for the period
  in which the taxpayer received an invoice or a
  customs document.

102

• If in any accounting period the amount of input
  tax, exceeds the amount of output tax, taxpayer
  is entitled to deduct the difference from output
  tax for subsequent periods or to have a refund
  transferred to his bank account.

103

• There is no reduction of the output tax by the
  input tax in case the taxpayer purchases inter
  alia goods and services, if the amounts paid for
  them are not considered costs for the income tax
  purposes, engine fuels for passenger cars,
  gastronomy services and services of providing
  accommodation.

104
Part IV

• Personal Income Tax

105

• Personal income tax is governed by the Personal
  Income Tax Act of 26 July 1991 (PITA).

106

• Income tax is generally levied at progressive
  rates on the aggregate income from all sources
  after making deductions.

107

• The taxable income from each source is as a rule
  the difference between the sum of receipts (both
  in cash and in kind) and related expenses
  incurred for the purpose of earning income,
  retaining or assuring the source of income.

108

• Certain kinds of income are taxed separately at
  flat rates.

109

• Sources of income covered by the PITA
• income from dependent services, including
  employment and pension income,
• income from independent services,
• income from business,
• income from particular agricultural sectors,
• income from immovable property,
• income from tenancy and lease,
• income from investments and property rights
  (investment income),
• income from the sale of immovable property,
  property rights and movables,
• other income.

110

• Taxpayer is considered to be a Polish resident in
  a given year for income tax purposes if at least
  one of the following conditions is met
• (1)
• his centre of vital interests is in Poland or
• (2)
• he stays in the territory of Poland for more than
  183 days.

111

• Partnerships are not taxable entities.
• Partners are taxed individually on their share of
  the profits.

112

• Polish residents are taxed on their worldwide
  income. Non-residents are taxed only on income
  derived from Polish sources.

113

• The list of exempt income is extensive and
  includes, inter alia
• several types of social distributions,
  indemnities received in respect of property and
  personal insurance, scholarships, game and
  lottery winnings (in some cases up to a certain
  limit).

114

• Business income is defined as income from
  non-agricultural business activities. In
  principle, income from agricultural activities is
  not subject to tax under the PITA.

115

• Business income is calculated as the difference
  between receipts and deductible costs. Expenses
  incurred in order to generate taxable income, or
  to retain or assure sources of taxable income are
  in general deductible, unless the law provides
  otherwise.

116

• Taxpayers may opt for a 19 flat-rate taxation of
  business income.

117

• Income from employment is categorized as income
  from dependent services, together with pensions
  and income from membership in cooperatives.
• Employment income is taxable on a cash basis,
  i.e. it becomes taxable at the moment the payment
  is received or put at the taxpayer's disposal.
• It is aggregated with income from other sources
  and is subject to income tax at the general
  progressive rates.

118

• Benefits in kind (valued on the basis of market
  prices of comparable goods or services) are
  subject to tax in the same way as salary payments
  obtained in cash.

119

• Pensions are treated as income from dependent
  services and are taxable at the moment of payment
  or when they are put at the taxpayer's disposal.
  The general progressive rates apply.

120

• Pensions derived from certain voluntary private
  pension plans, however, are exempt (contributions
  to these plans are not deductible for income tax
  purposes).

121

• Employment income is calculated as the difference
  between gross income and standard deductions as
  provided for by the law.

122

• Employees' social security contributions are
  deductible for tax purposes. Contributions paid
  by the employer on behalf of an employee are not
  taxable in the hands of the employee.
• Contributions to voluntary private pensions plans
  which are paid by employees, are not deductible
  for individual income tax purposes.

123

• Polish-source interest is not aggregated with
  income from other sources it is subject to a
  final withholding tax.

124

• Polish-source dividends are not aggregated with
  income from other sources they are subject to a
  final withholding tax.

125

• Income from royalties is taxable under the
  general rules at the progressive rates. In
  certain cases, 50 of earned income is deductible
  as an expense. 
•  

126

• Losses from one source of income may not be set
  off against profits from another source of
  income. Losses may be carried forward for 5
  years up to 50 of the loss may be set off in
  each year. However, the loss carry-forward rule
  does not apply to losses from the sale of real
  estate.

127

• There is a personal allowance of PLN 3,013.36,
  which is the annual income threshold not
  triggering individual income tax.
•  

128

• The cost of Internet access at the taxpayer's
  premises is deductible up to PLN 760 per annum.  

129

• In general, spouses are taxed separately on their
  income. However, spouses in a community property
  marriage, who are resident taxpayers, may select
  to file a joint tax return, provided that they
  were married during the entire tax year (also if
  one of the spouses died during the tax year) and
  do not earn income subject to a flat income tax
  rate (except for rental income).  

130

• Tax is assessed in the name of both spouses and
  is equal to twice the amount of tax computed with
  respect to half of the spouses' aggregate income.
   

131

• Withholding taxes apply to income from various
  sources, including employment and certain income
  from personal services.  

132

• RATES 
• Taxable Tax
• Income (PLN)
• (PLN)
• up to 43.405 19 minus 572,54
• 43.405 85.528 7.674,41 plus 30 of amount
  exceeding 43.405
• over 85.528 20.311,31 plus 40 of amount
  exceeding 85.528
•  
•  
•   

133
Part V

• Corporate Income Tax

134

• Corporate Income Tax Act of 15 February 1992

135

• Corporate income is taxed at the company level
  and the distributed profits are taxed again by
  way of withholding when distributed to the
  shareholders. For resident corporate
  shareholders, the tax so withheld is credited
  against their corporate income tax liability.If
  the withholding tax cannot be fully credited, the
  credit may be carried forward indefinitely.

136

• Taxpayers joint-stock companies, limited
  liability companies, state enterprises and
  cooperatives, units without legal personality,
  tax capital groups.

137

• Companies "under formation" are also considered
  taxable persons if they commence economic
  activities before they become fully registered.

138

• Investment funds and pension funds are exempted
  from corporate income tax.

139

•  
• In general, partnerships are not taxable persons.
  Partners are taxed individually on their share of
  the profits, either under CITA provisions
  (corporate partners) or under PITA provisions
  (individual partners).

140

•  
• A company is resident in Poland for tax purposes
  if it has its legal seat or management office in
  Poland. Consequently, a company is regarded as a
  Polish resident if it is either incorporated in
  Poland or managed in Poland.

141

• Resident companies are subject to tax on their
  worldwide income, while non-residents are taxable
  only on income earned in Poland.

142

• The tax year corresponds to the calendar year.
  However, taxpayers may opt for another period of
  12 consecutive months as the tax year.

143

• Taxable income is the difference between gross
  income and deductible costs, as allocated to the
  tax year.

144

• In practice, taxable income is calculated by
  adjusting the accounting profits for tax
  purposes.

145

• The CIT exempts certain types of income from
  income tax
• income received by taxpayers from governments of
  foreign countries, international organizations or
  international financial institutions, including
  the funds of EU and NATO programmes for research
  and technical developments, deriving from
  non-returnable foreign aid funds granted on the
  basis of a unilateral declaration or agreements
  concluded with these countries, organizations or
  institutions by the Council of Ministers of the
  Republic of Poland, the competent minister or
  government agencies (Art. 17.1.23 CITA),
• income derived by charitable organizations and
  used for their charitable purposes (Art. 17.1.
  6c) CITA) and
• income derived by cooperatives and companies
  whose statutory activity is a scientific,
  technical research or educational activity.

146

•  
• Costs incurred for the purpose of generating
  income or retaining or protecting sources of
  income constitute deductible costs, unless
  otherwise provided by law.

147

• Dividends paid to a company's shareholders are
  not treated as a cost and are not deductible for
  income tax purposes.

148

• Interest accrued and paid is deductible (if
  incurred for the purpose of generating income),
  while interest accrued but not actually paid is
  not deductible.

149

• Poland has thin capitalization rules and
  therefore the deductibility of interest can be
  limited.

150

• Under certain conditions, donations made to
  public organizations registered in Poland or
  another EEA country (EU Member States, Iceland,
  Liechtenstein and Norway) as well as donations
  for religious purposes are deductible from
  taxable income up to a maximum of 10 of the
  income.

151

• Non-deductible expenditures
• expenses incurred on purchasing or producing
  fixed assets or intangibles (deductible through
  depreciation and amortization deductions),
• expenses incurred on purchasing land or
  perpetual usufruct rights to land (they can be
  deductible upon sale see, however, for taxation
  of capital gains),
• repayments of loans,
• tax fines, penalties and indemnities,
• interest on additional capital contributions, on
  dividends and other corporate distributions, and
• representation expenses including costs of
  restaurant services, purchase of foodstuffs and
  drinks, including alcohols.

152

•  
• Losses may be carried forward and set off against
  income over a period of 5 years. Up to 50 of the
  loss may be set off in each year. Loss carry-back
  is not allowed.

153

•  
• From 1 January 2004 the corporate income tax rate
  is 19.

154

•  
• Generally, dividends and other income from profit
  sharing of a resident company received from
  another resident company are subject to a 19
  withholding tax. The dividend income can be
  exempt from withholding tax where the dividend
  recipient holds at least 15 of shares in the
  dividend payer's share capital for a minimum of 2
  years (10 from 2009 onward).

155
Corporate income tax is assessed in the form of
self-assessment by the taxpayer. Taxpayers must
calculate the amount of tax due, pay monthly
advances, file an annual tax return and pay the
final tax.

•  
•  

156
The tax authorities have the right to verify the
amount of calculated tax and may issue a decision
correcting the amount of tax declared. A tax
control and an assessment procedure take place
before the decision is issued by the tax
authorities.

•  
•