Bank tax – taxation of financial institutions’ assets

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Bank tax – taxation of financial institutions’ assets

Tax Alert 20/2015

5 December 2015

On 3 December 2015 the financial transaction tax bill introducing taxation of assets of selected financial institutions was presented to the Polish Sejm. The tax rate will range from 0.0325% to 0.05% of the total asset surplus exceeding PLN 4 billion. The act is expected to come into force as of 1 February 2016.

Application of the new tax regulations

The new tax will be imposed on various financial institutions, i.e. domestic banks, branches of foreign banks, branches of credit institutions, cooperative savings and credit unions, domestic insurance companies, domestic reinsurance companies, branches and main branches of foreign insurance companies and foreign reinsurance companies.

Taxable amount and tax scope

In accordance with the bill, assets of selected payers of tax on financial institutions will be subject to the new tax.

The taxable amount will be the surplus of total assets of the taxpayer recognized in the trial balance prepared by the taxpayer at each month-end in excess of PLN 4 billion.

Tax rate

The projected tax rate for each month is:

  • 0.0325% of the taxable amount for domestic banks, branches of foreign banks, branches of credit institutions, cooperative savings and credit unions;
  • 0.05% of the taxable amount for domestic insurance companies, domestic reinsurance companies, branches and main branches of foreign insurance companies and foreign reinsurance companies.

In accordance with the bill, taxpayers will settle tax on a monthly basis.

Tax exemptions and tax credits

State banks may be tax exempt. Under the bill, no tax exemptions and tax credits defined in separate regulations will apply to the tax on selected financial institutions.

Podatek bankowy - alert podatkowy
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