What is an investment agreement under the Polish Deal?

The solution, widely known as an investment agreement, has so far not been used in Polish tax law. However, it was previously announced by the Ministry of Finance as Interpretation 590. According to the official rationale, this project is designed to enable entrepreneurs and investors to accurately determine the tax consequences, as well as to plan the strategy in the most efficient way before the investment is made. The conclusion of such an agreement has a much greater protective power than the preparation of individual interpretations. At the same time, the agreement encourages a potential investor to commit his capital.

The investment agreement entered into force on January 1, 2022. The Tax Ordinance Act defines a very broad definition of an investor. According to the official understanding, it can be any entity that is planning or has started an investment in Poland. There are no restrictions as to the type of legal form or registered office in this case. In addition, an investor can also become a foreign entity wishing to make an investment in the Republic of Poland. The only limitation that applies to entrepreneurs under the investment agreement is the maximum investment value. It must be at least 50 million PLN – which in turn suggests that such a solution is predetermined for really large and important market operations.

What is included in the investment agreement?

The Investment Agreement is a comprehensive document intended to supersede many individual interpretations and protective opinions. The declaration thus established above all raises essential questions such as the assessment of the conformity of the transfer price of the controlled transaction with market conditions, the analysis of the tax advantages indicated in the application for the conclusion of an investment, the agreement , the precise description and classification (also in the Combined Nomenclature) of the goods or services, and the appropriate tax rate, as well as the exact interpretation of the provisions of the tax legislation.

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