According to the published act project from 6.7.2017 on the change of the act on the income tax from natural persons, the act on the income tax from legal persons and the act on the flat-rate income tax from some of the incomes of the natural persons, Ministry of Finances plans many changes in provisions connected to avoiding the taxation by creating the controlled foreign companies (CFC) in the countries of the preferred requirements of taxation.

The basic planned changes are as follows:

  • Introducing the effective (instead of the nominal) amount of tax as the criterion of the CFC status – in consequence of which the company with a registered seat in a country of high taxes and using the deductions and refunds of taxes could be qualified as the CFC;
  • Introducing the new catalogue of incomes regarded as being subjected to CFC – except the so-called passive incomes from interests, dividends or liabilities the decisive should be the incomes earned by a foreign company from the transactions with the related entities when the company does not produce the economic added value related to those transactions or the value is very low and connected to the insurance or bank activities;
  • The obligation to include the foreign company in the CFC register is also when it conducts the real economic activity in other EU/EEA country;
  • The change of the percent range of the owned shares, the threshold of the classified incomes compared to the rest of the incomes, the additional amount to the owned shares in the entity of the shares owned in the company by other related entities.