The draft of the Act amending the Act on Polish Corporate Income Tax law involves inter alia changes in provisions for so-called "thin capitalization" of the companies, that is regulations exempting from tax deductible costs interest on capital loans granted to companies by some of the related entities. According to the draft, the group of entities covered by these provisions will be extended. This will apply also to the loans received from companies related to the borrower through a common indirect shareholder, which means the loans obtained from the companies in which the same entity has even indirectly, not less than 25% of shares.

To read more about the restrictions in thin capitalization, please click HERE.

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