NEW TREATMENT OF INCOME IN RESPECT OF NON

NEW TREATMENT OF INCOME IN RESPECT OF NON-CASH CAPITAL CONTRIBUTIONS
We wish to alert you to recent amendments to the Personal Income Tax Act ("PITA") and the
Corporate Income Tax Act ("CITA") which were signed by the President on 22 September 2016.
The proposal provides for new rules on how to treat income represented by shares taken in exchange
for non-cash assets.
The current CITA says that where a shareholder takes shares in a company in exchange for any noncash assets other than a going-concern business or a branch of activity, the nominal value of those
shares shall be treated as the shareholder's income.
After the proposal becomes the law, the shareholder's income will be equal to the value of the assets
as specified in the articles of association or, in the absence of articles, in some other similar document.
However, if the assets' value as per those documents is lower than their market value or no value is
indicated in the documents, then the shareholder's income will equal their market value as at the
date of the transfer of title to the assets.
The new law is supposed to become effective on 1 January 2017.
If this issue pertains to your business and you are interested in our assistance, please contact your
WTS&SAJA consultant or our office.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Delta Building, 4th floor
ul. Towarowa 35
61-896 Poznań
tel. (+48) 61 643 45 50
fax. (+48) 61 643 45 51
Warsaw Office
CENTRAL Tower, 22nd floor
Al. Jerozolimskie 81
02-001 Warszawa
This Newsletter provides general information and is designed to keep you up-to-date with changes in tax law, tax rulings and
interpretations, case law development and interesting commentaries.
Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions that follow from the contents hereof.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Delta Building, 4th floor
ul. Towarowa 35
61-896 Poznań
Poland
P +48 61 643 45 50
F +48 61 643 45 51
[email protected]
www.wtssaja.pl
Managing Partner:
Magdalena Saja
Tax ID: 778-141-77-66
Poznań District Court for Poznań Nowe Miasto
and WiIda, 8th Commercial Division
KRS 0000206176
Share capital: 200 000 PLN