Accounting for Polish Holding Company (PSH)

What is a Polish Holding Company?

The Polish Holding Company (PSH) is an institution in troduced into the Polish legal order in 2022, aimed at Polish commercial companies whose structures include Polish or foreign subsidiaries. The possibility of establishing a Polish Holding Company is an interesting proposition for investors who are interested in placing their capital in Poland.

What tax benefits are dedicated to Polish Holding Companies?

The main benefits of this regulation include the exemption from taxation of income from the disposal of a subsidiary's shares and income from dividends received from a subsidiary. The elimination of tax on dividends and capital gains also applies if the dividend is from non-EU/EUG/Swiss entities (bypassing tax havens).

Taking advantage of this form of doing business is a cheaper solution than operating a foreign company. It also reduces the risk of tax preferences being challenged in the face of tax avoidance provisions.

Who can form a Polish Holding Company?

In order for an entity to be considered a holding company within the meaning of the CIT Law, first and foremost, the requirement for actual business activity must be met. The second important condition for the establishment of a PSH is that the holding company must hold title to at least 10% of the shares in the subsidiary for at least two years.

What facilitations have been introduced in 2023 for Polish Holding Companies? As of January 1, 2023, taking advantage of the discussed model of running a company has become even more attractive. The previous 95 percent dividend exemption has been replaced with a full 100 percent exemption. In addition, a Polish Holding Company from 2023 can be not only a limited liability company and a joint-stock company, but also a simple joint-stock company. Thanks to the changes made to the regulations for PSH, this institution is available to a wider range of CIT taxpayers.

Accounting for PSH - we can help!

Our MDDP Outsourcing experts are a guarantee of specialized accounting services for each Polish Trading Company and subsidiary. They will be happy to take care of comprehensive accounting services for PSH, taking into account solutions specific to this model.

We will efficiently handle the accounting for the Polish Holding Company. As part of our service, we offer you the following services.

- We maintain the books of the holding company and Polish subsidiaries with the specifics of the business:
  
  accounting services for transactions, including transactions related to the acquisition of assets in the form of shares of subsidiaries by PSH,
  
  we will conduct accounting records, regardless of the complexity and scale of the PSH,
  
  we will provide specialized support for the processes of handling payments of the holding company and Polish subsidiaries, with full cost control,
  
  automate the accounting processes of the holding company and Polish subsidiaries.
- We provide comprehensive tax services for the holding company and Polish subsidiaries in terms of VAT and CIT tax settlements (including tax exemptions).
- Including the preparation of reports on the company and the capital group to which the company belongs. We prepare reports for both internal and external purposes. Moreover, we will prepare financial statements, both individual and consolidated. In doing so, we will ensure, among other things:
  
  matching all reports and statements to the requirements of internal and external stakeholders,
  
  effective minimization of the risk of errors in the reports and financial statements of the holding company and Polish subsidiaries,
  
  a reliable approach to report preparation,
  
  handling the audit of the financial statements for your holding company and Polish subsidiaries,
  
  preparation of reports of the holding company and Polish subsidiaries in accordance with IAS/IFRS requirements,
  
  guaranteeing the quality of financial statements and reports.

Why should you cooperate with Aider Polska?

Using modern technologies in our daily work, we enable our clients to take advantage of remote access to the service we offer. Thanks to this, Polish Commercial Companies serviced by us always have full control over the documentation and accounting processes of their organization. Thanks to the fact that we have experience in working on different systems, we can use our accounting software or work on the system implemented at PSH. We also use Electronic Document Circulation, which supports the company's processes, regardless of which accounting system is used.

Get guaranteed PSH accounting services at the highest level! Ask for our offer!