Broadcast on 4 November 2026, this EY TV session for capital groups examines the critical decision between establishing a Polish branch (oddział) versus a subsidiary (spółka zależna) for foreign expansion. The choice fundamentally affects legal liability, corporate income tax (CIT) and VAT registration, transfer pricing obligations, financial statement consolidation, audit requirements, and employment law responsibilities. The webcast provides a comparative analysis across these dimensions, highlighting recent regulatory changes such as the mandatory CIT consolidation for tax capital groups, branch profit attribution rules, and VAT group registration eligibility. Real-life case studies illustrate the decision framework for different business models.
Key Takeaways
- Liability and Risk Isolation: A subsidiary limits parent company liability to contributed capital, whereas a branch exposes the foreign parent to unlimited Polish legal and tax liabilities.
- Tax Efficiency Drivers: Branches avoid Polish CIT on retained earnings but face profit attribution audits; subsidiaries enable tax group formation for loss offset and dividend exemption (subject to holding requirements).
- Compliance Burden: Subsidiaries require standalone financial statements, statutory audit (if thresholds met), and separate JPK/CIT filings; branches simplify reporting but demand rigorous head office cost allocation documentation.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement