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.
About the author
Maciej Pilarek
Managing Partner of PLA.partners
Maciej is a law graduate of the Faculty of Law, Administration and Economics at the University of Wrocław. He graduated from Master of Business Administration studies at the Institute of Economics of the Polish Academy of Sciences in Warsaw, as well as LL.M. in International Commercial Law and Tax Law at Akademia im. L. Koźmiński in Warsaw.
Maciej specializes in commercial law, with particular emphasis on commercial companies law, tax law, as well as in business management aspects. Together with his team, he advises on strategic matters related to running a business, conducts enterprise reorganization projects, transaction and financing processes, as well as legal disputes on economic grounds. As part of consulting, together with a team of experts, he uses the instruments of Polish law as well as foreign regulations.
Before starting his professional activity as part of PLA.partners, for fourteen years he co-founded, and then as Director and Partner, he managed a team of lawyers concentrated in three legal departments in one of the largest, recognized law firms in Poland.
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