Without much notice or consultation, the legislature plans to revolutionize the taxation rules not only for limited partnerships but also for certain general partnerships.

A few years ago, the governing authorities implemented efforts to subject limited partnerships to CIT, but after strong pressure they abandoned this idea, introducing CIT coverage “only” for limited joint-stock partnerships.

On 16 September 2020, a draft bill, which had been announced only a few days earlier, was published.

In short, the draft provides that limited partnerships, as well as some general partnerships, would be subject to CIT, and this already from 1 January 2021.

At this moment, the draft assumes e.g. exemption of up to 50% of income obtained by a limited partner from profit sharing in a limited partnership, however no more than PLN 60,000 in a given tax year, which in most cases will result in a real increase of the economic tax burden for you.

We are monitoring the work on the draft law, which we would like to believe will be subject to modifications as a result of the pressure resulting from the consultation of the draft.

We will keep you informed of significant steps along the legislative path of this bill.