{"id":10368,"date":"2025-01-22T17:43:42","date_gmt":"2025-01-22T15:43:42","guid":{"rendered":"https:\/\/gls-law.company\/?p=10368"},"modified":"2025-01-22T17:43:44","modified_gmt":"2025-01-22T15:43:44","slug":"what-is-pillar-2-the-global-minimum-tax-of-15-and-its-impact-on-businesses-in-poland","status":"publish","type":"post","link":"https:\/\/gls-law.company\/en\/what-is-pillar-2-the-global-minimum-tax-of-15-and-its-impact-on-businesses-in-poland\/","title":{"rendered":"What is Pillar 2: The Global Minimum Tax of 15% and Its Impact on Businesses in Poland?"},"content":{"rendered":"\n

Starting in 2025, Poland will join the OECD’s global initiative called Pillar 2, introducing a global minimum tax rate of 15%. This initiative aims to create a more transparent tax system and prevent tax avoidance through low-tax jurisdictions.<\/p>\n\n\n\n

What is Pillar 2 and How Does It Work?<\/strong><\/h3>\n\n\n\n

Pillar 2 is a mechanism that ensures the global profits of large multinational corporations are taxed at a minimum rate of 15%. If a company operates in a country where the corporate tax rate is lower than this level, its parent company will have to pay the difference in the country where it is registered.<\/p>\n\n\n\n

Practical Example:<\/strong>
A multinational company earns profits in a country with an effective tax rate of only 5%. Poland, where the parent company is registered, will add an additional 10% to reach the 15% minimum rate.<\/p>\n\n\n\n

Who Does Pillar 2 Affect?<\/strong><\/h3>\n\n\n\n

The new tax applies to:<\/p>\n\n\n\n

    \n
  • Large Multinational Companies<\/strong>: Those with annual revenues exceeding \u20ac750 million across all countries of operation.<\/li>\n\n\n\n
  • Companies registered or conducting business in Poland.<\/li>\n<\/ul>\n\n\n\n

    Who is Exempt from Pillar 2?<\/strong><\/p>\n\n\n\n

      \n
    • Small and Medium Businesses in Poland<\/strong>: With revenues below \u20ac750 million.<\/li>\n\n\n\n
    • Local Companies<\/strong>: That do not have international operations.<\/li>\n<\/ul>\n\n\n\n

      Example:<\/strong>
      The “TechnoGlobal Group” with \u20ac1 billion in revenues pays taxes in various countries. If part of the profit is taxed below 15%, Poland will apply the difference.<\/p>\n\n\n\n

      How is Pillar 2 Calculated?<\/strong><\/h3>\n\n\n\n

      The calculation is based on the company’s effective tax rate in each country of operation:<\/p>\n\n\n\n

        \n
      1. Determine the company\u2019s total profit.<\/li>\n\n\n\n
      2. Calculate the taxes paid in each jurisdiction.<\/li>\n\n\n\n
      3. If the tax rate is below 15%, the difference is added in the country where the parent company is registered.<\/li>\n<\/ol>\n\n\n\n

        Example:<\/strong>
        The company “EcoTrade” earns profits in a country with an 8% tax rate. Poland, as the parent company’s registration country, will add another 7% to meet the minimum level.<\/p>\n\n\n\n

        Impact on Businesses in Poland<\/strong><\/h3>\n\n\n\n
          \n
        • For Large Multinational Corporations:<\/strong>\n
            \n
          • They will need to review their tax strategies to avoid additional charges.<\/li>\n\n\n\n
          • This may lead to a redistribution of financial flows and restructuring.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • For Poland:<\/strong>\n
              \n
            • It provides an opportunity to increase tax revenues.<\/li>\n\n\n\n
            • The government will have more resources for social programs and infrastructure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • For Small and Medium Businesses:<\/strong>\n
                \n
              • Pillar 2 will have no impact as it only applies to large corporations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

                Example:<\/strong>
                The company “AgroInvest,” which operates only in Poland with \u20ac10 million in revenue, is not subject to this tax.<\/p>\n\n\n\n

                How to Prepare for Pillar 2 Implementation?<\/strong><\/h3>\n\n\n\n
                  \n
                1. Analyze Profits and Taxes:<\/strong>\n
                    \n
                  • If part of a multinational group, ensure your subsidiaries meet the 15% minimum rate.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                  • Review Jurisdictions of Operation:<\/strong>\n
                      \n
                    • Operating in low-tax jurisdictions may result in additional charges.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                    • Consult Experts:<\/strong>\n
                        \n
                      • These new rules are complex and require expert advice to understand their impact on your company.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n

                        Example:<\/strong>
                        The “LogisticsGroup” is reviewing its structures in low-tax countries to avoid additional charges in Poland.<\/p>\n\n\n\n

                        What Will Poland Gain from Pillar 2?<\/strong><\/h3>\n\n\n\n
                          \n
                        • Ensure fair distribution of tax burdens among countries.<\/li>\n\n\n\n
                        • Increase revenue to the state budget.<\/li>\n\n\n\n
                        • Reduce incentives for companies to shift profits to offshore zones.<\/li>\n<\/ul>\n\n\n\n

                          Conclusion<\/strong><\/h3>\n\n\n\n

                          The implementation of Pillar 2 is a step toward global tax transparency. While this tax directly impacts only large corporations, its influence on Poland’s business environment could be significant.<\/p>\n\n\n\n

                          Our team is here to help you adapt to these changes and minimize tax risks. \ud83d\ude80<\/p>\n","protected":false},"excerpt":{"rendered":"

                          Starting in 2025, Poland will join the OECD’s global initiative called Pillar 2, introducing a global minimum tax rate of 15%. This initiative aims to create a more transparent tax system and prevent tax avoidance through low-tax jurisdictions. What is Pillar 2 and How Does It Work? Pillar 2 is a mechanism that ensures the […]<\/p>\n","protected":false},"author":4,"featured_media":10356,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-10368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-taxes"],"_links":{"self":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/10368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/comments?post=10368"}],"version-history":[{"count":1,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/10368\/revisions"}],"predecessor-version":[{"id":10369,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/10368\/revisions\/10369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media\/10356"}],"wp:attachment":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media?parent=10368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/categories?post=10368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/tags?post=10368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}