The Institute of Finance at the SGH Warsaw School of Economics is organising an internatinal conference on 9 December 2024 in hall I building C international conference entitled:
“Distributed Profit Taxation - Polish and worldwide perspective”.
The subject of the conference is to summarise the first four years of the lump sum on corporate income in Poland from a legal and economic perspective and to look at the future of the distributed profits taxation model in Poland and worldwide. The conference will present, among other thingstopics, the conclusions of economic research conducted at the Warsaw School of Economics and by the Tax Foundation from the USA, as well as the perspective of representatives of the tax administration and business, including those from countries where the distributed profits tax operates, in particular Estonia and Latvia. As the key note speaker is expected to be Mr Daniel Bunn, President of the Tax Foundation.
Partial conclusions were developed in the first stage of research carried out at SGH at the request of MEiN - a task called: “Tax on divided profits, the so-called “Estonian” CIT as a target model for taxation of corporate income in Poland.
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The current Corporate Income Tax Act has been in force in Poland for more than 30 years. Permanent amendments in the last three decades have not only failed to solve many existing problems in corporate income taxation, but have also led to further complication of the tax system, resulting in increasing difficulties on the part of taxpayers in applying the provisions concerning them. The erosion of the tax base, which is seen in particular in tax avoidance techniques, is also a phenomenon that determines to a large extent the need for changes in income taxation. An important factor that may be at the root of the exhaustion of the traditional way of taxing certain economic phenomena or processes is the increasing complication of international business relations. The persistence of the legislator in taxing earned (accrual) income, forces further initiatives to adapt the current system to the changing reality and to the changing priorities of state economic policy.
Currently, there is a dualism of taxation of corporate income in Poland, based on:
- classical principles of taxation of accrual-based tax income (rule),
- a lump sum on company income based on the taxation of distributed profits (on an elective basis) introduced into the Polish tax system in 2021.The essence of the tax on distributed profits is that the tax liability is linked to the point at which profits are distributed to the shareholders. As a result, funds retained in the company remain untaxed until they are distributed. The concept of distributed profits tax was first applied in Estonia in 2000. The favourable effects of replacing the classic CIT with a distributed profits tax have also encouraged other tax jurisdictions to work on providing taxpayers with the option of taxing corporate income on a basis modelled on the system in Estonia.Latvia, Georgia, Macedonia, Moldova and Slovenia also have experience with a distributed profits tax, and, from since 2021, so will has Poland.
The first step towards the implementation of a distributed profits tax was the introduction of the institution of a lump sum on income of capital companies into the Polish tax system. However, the Polish legislator did not replace the classic CIT model with a general tax on distributed profits, extending the new rules to the settlements of certain groups of taxpayers. This is also due to the optionality of the application of Estonian CIT, i.e. the right to choose (option) this taxation model.
- Call for papers
We kindly invite you to submit article text proposals for the conference. Suggested topics include the following groups of problems:
- evaluation of the classic principles of income taxationn of tax revenue,
- the feasibility and validity of alternative principles of taxation of company profitsof alternatives to current income taxation rules,
- forms practical forms of tax on distributed profits,distributed profit taxation model,
- legal and economic analysis of distributed profit tax implementations of distributed profits tax in other countries,
- evaluation of the dualism of taxation of corporate income in Poland,
- challenges facing the current system of taxation of company profitsCIT in Poland,
- the impact of the current model of company income taxationCIT in Poland on investments, finances and dividend policy of companies,
- short-term and long-term legal and economic consequences of the introduction of new principles of corporate taxationdistributed profit taxation in Poland,
- simulation of the legal and economic effects of the implementation of the distributed profits tax model,
- distributed profits tax and company valuation,
- distributed profits tax vs. tax preferential systemtax preferences
- tax compliance costs of Polish companies -– comparison of classic and flat rate rules on corporate incomeclassical CIT vs distributed profit taxation,
- access to finance among Polish companiesCIT taxpayers
Technical requirements for the texts to be submitted:
- texts in Word,
- suggested volume: 15-25 pages
- structure: abstract and keywords (both also in English) - introduction - main part - conclusion - literature,
- basic text: font Times New Roman, size 12, spacing 1.5,
- indentation: left 0 cm, right 0 cm, special - first line of paragraph 0.5 cm,
- all pages numbered,
- figures in Excel,
- References: at the bottom of the page, Times New Roman, font size 11, leading 1,
- APA citation and bibliography notation system,
- References: typeface 1, spacing 1.5 between bibliographic entries.
Additional publishing requirements will be communicated to the authors of the selected texts.
- Selected post-conference papers will be published
written in Polish in the Zeszyty Naukowe SGH ‘Studia i Prace Kolegium Zarządzania i Finansów’. The author will receive 40 points for the publication. (https://econjournals.sgh.waw.pl/SiP)
written in English in the Journal of Management and Financial Sciences. - a journal published by the College of Management and Finance of SGH. The author will receive 40 points for publication.(https://econjournals.sgh.waw.pl/JMFS)
These journals are indexed in the following databases, among others: IC Journals Master List, BazEkon, PBN - Polish Scientific Bibliography. Ethical principles in accordance with COPE (Committee on Publication Ethics) guidelines are applied.
- Deadline
- by December 31, 2024, please send titles and abstracts of proposed papers (or whole texts),
- by January 31, 2025: the organisers will communicate the acceptance or rejection of the proposed paper,
- by February 28, 2025: deadline for submission of post-conference papers.
The primary language of the conference will be English.
Please send your texts in Polish (including the abstract and keywords also in English) or in English.
CONTACT:
Institute of Finance, e-mail: if@sgh.waw.pl
KONTAKT
Instytut Finansów email: if@sgh.waw.pl
