Financial institutions levy in Poland
Tax Alert 2/2016
19 January 2016
On January 15, 2016, the act on tax on assets of certain financial institutions was introduced in Poland. It comes into force on February 1, 2016.
The law introduces a wealth tax, in which subject to taxation are assets of certain financial institutions, i.e.:
• domestic banks,
• branches of foreign banks,
• branches of credit institutions,
• cooperative banks,
• domestic insurance companies,
• domestic reinsurance companies,
• branches and main branches of foreign insurers
• loan institutions.
The tax base thresholds are set accordingly:
• banks, branches of banks, credit institutions and cooperative banks – assets exceeding the value of PLN 4 billion (however decreased by banks’ own funds and certain financial assets like e.g. treasury bonds, gathered by banks),
• insurers, reinsurers and their branches – exceeding PLN 2 billion (that value is calculated jointly for all taxpayers related or co-related directly or indirectly to one entity or a group of related entities),
• loan institutions – exceeding PLN 200 million (that value is calculated jointly for all taxpayers related or co-related directly or indirectly to one entity or a group of related entities).
The tax will be collected on a monthly basis (beginning from February 2016) and the tax rate is set at the level of 0,0366% of the tax base. Foreign insurance and reinsurance companies from e.g. EU countries which conduct their activities in Poland
based on the freedom of providing insurance services rule (not through a branch in Poland) as well as banks providing cross-border banking services are not treated as taxpayers. Besides, among other entities which are exempt from the said tax are Polish state banks and financial institutions being subject to liquidation, bankruptcy or compulsory administration.
The amount of the said tax cannot be treated as a tax deductible cost for purposes of the Polish Corporate Income Tax.