The Polish top up taxation act, implementing Council Directive (EU) 2022/2523 (GloBE), generally applies to fiscal years beginning after 31 December 2024.
Scope of the regulations and the EUR 750 million threshold
The regulations apply to both multinational groups and domestic groups whose consolidated group revenue amounted to at least EUR 750 million in at least two of the four fiscal years preceding the testedyear. Their purpose is to ensure a minimum effective tax rate (ETR) of at least 15% in each jurisdiction in which the group operates.
Polish QDMTT and priority of taxation in Poland
Poland has decided to implement a qualified domestic minimum top up tax (QDMTT). In practice, this means that any additional tax liability is collected by the Polish state budget before allocationmechanisms in other jurisdictions are applied. This solution strengthens the protection of the domestic tax base, while shifting responsibility for the initial calculation of the effective tax rate to the Polishconstituent entities of the group.
Practical challenges connected with the implementation of GloBE
From a practical perspective, the implementation of the GloBE rules presents a number of challenges.
Transfer pricing and the ETR calculation
First, the calculation of the effective tax rate under the GloBE regime is based on financial data which, in practice, is closely connected with transfer pricing settlements. As a result, inconsistencies in transfer pricing documentation or in the recognition of intragroup transactions may affect the outcome of the ETR calculation and the amount of potential top up tax.
The importance of withholding tax in the GloBE calculation
Second, the correct treatment of withholding tax (WHT) is particularly important, especially in relation to dividends and royalty payments. Their classification affects the amount of taxes included in the ETR calculation, while potential irregularities may only become apparent during a tax audit.
2026 and the new reporting obligations
The year 2026 will be one of the first periods in which some groups covered by the GloBE regime will begin fulfilling the new reporting obligations. Although transitional provisions provide for extended deadlinesduring the first reporting year, it is advisable to ensure the consistency of tax and financial data before they are reviewed by the tax authorities.
Conclusions
The GloBE regime requires not only the performance of new calculations, but also consistency between financial data, corporate income tax, withholding tax and transfer pricing documentation. Appropriate preparation of data and procedures may reduce the risk of errors in the ETR calculation and in determining the amount of top up tax.
We support corporate groups in assessing their obligations under the top up taxation regulations, calculating the ETR and analysing the impact of transfer pricing and withholding tax on GloBE settlements. We also assist in organising the financial and tax data required to fulfil the new reporting obligations correctly.
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