Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the ninja-forms domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/vhosts/superksiegowy.pl/httpdocs/wp-includes/functions.php on line 6114

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the rocket domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/vhosts/superksiegowy.pl/httpdocs/wp-includes/functions.php on line 6114

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wordpress-seo domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/vhosts/superksiegowy.pl/httpdocs/wp-includes/functions.php on line 6114
Hidden dividend - Super Księgowy
  • Oławska 23h/2
  • 55-220 Jelcz-Laskowice
  • Kościerzyńska 32
  • 51-430 Wrocław
  • 08:00 - 16:00
  • Monday - Friday

Hidden dividend - Super Księgowy

Dividend is a term associated with activities conducted in the form of companies. This concept naturally denotes a shareholder’s share in the company’s profits. However, the Polish Deal introduces a new concept in the form of hidden dividends. What does this entail? When will the regulations concerning hidden dividends come into force, and when will a hidden dividend not be considered as a deductible expense?

What is supposed to be a hidden dividend?

Hidden dividend occurs when there is an artificial flow of funds between a company and its shareholders for other reasons, such as in exchange for a service. Unlike a typical dividend, this type of expense can be classified as deductible expenses reducing the taxable income of the company. According to the law introducing additional restrictions, hidden dividends will include:

  • payments unrelated to conducted business activity;
  • non-market transactions;
  • excessive debt of the company to related entities;
  • dependence on the company’s profits for remuneration to related entities;
  • use of assets by a shareholder previously withdrawn from the company;

These expenses will no longer be classified as deductible expenses.

Since when will the provisions on hidden dividends be in force?

The regulations regarding hidden dividends have so far been formulated very imprecisely, giving rise to many doubts and controversies. It was necessary to develop a new version of these regulations, which was included in the September draft law. It is already known that due to the need to clarify ambiguities in the regulations, their implementation will be significantly delayed.

The new provisions regarding hidden dividends, prohibiting companies subject to CIT from deducting them from their revenue, will therefore come into force only in 2023, and not as most tax-related provisions related to business operations from 2022.

Hidden dividend – when will it not be treated as a deductible expense?

According to the clarified provisions in the September draft of the law, there are three situations envisaged when expenses related to services provided to companies by related entities will constitute hidden dividends not deductible as revenue-generating costs. Firstly, this will be the case when the costs or the timing of their incurrence are in any way dependent on the taxpayer’s profit or its achievement.

Secondly, hidden dividends will not be considered revenue-generating costs when the transaction has an artificial character or is carried out on non-market terms. Thirdly, hidden dividends will not be counted as revenue-generating costs if they relate to payments for the use of assets, such as real estate, owned by the company’s shareholder before its establishment.

However, in the case of non-market transactions and the use of assets, the provisions will not apply if the sum of such costs in the tax year is lower than the amount of the accounting gross profit for the financial year in which they were included in the financial statement.