Polish Limited Partnership – taxation. Changes from 2021.
Beginning from 2021, there is a change in the taxation of Polish limited partnerships. As a rule, from January 1, 2021, Polish limited partnerships, which had so far been tax transparent, became taxpayers of Polish corporate income tax.
In simple terms, the changes resulted in the fact that profits generated through Polish limited partnerships and then paid to its partners are taxed on similar principles as in the case of Polish limited liability companies.
As a reminder, until the end of 2020, Polish limited partnerships were not taxpayers of income tax. In the case of limited partnerships, only partners settled with the tax authorities in proportion to the agreed share in the profits. The rules of taxation of limited partnerships resembled the taxation of natural persons conducting individual business activities (sole traders) or general partnerships.
If you need more information on Polish limited partnerships and their taxation, please contact our team.