The CJEU indicated that a transformation should not be subject to PCC if it is not accompanied by new contributions. The ruling is significant in light of the tax authorities’ previous practice, under which an increase in a company’s assets could, in certain circumstances, trigger a tax liability upon transformation.

“The tax authorities interpret these provisions to the detriment of taxpayers. They argue that PCC is payable even when the partners make no new contributions. It is enough for the tax authorities that the assets of the company being transformed have increased during its operations. For example, if a limited partnership had assets worth PLN 1 million at the outset and PLN 5 million when it was transformed into a general partnership, the tax authorities want tax to be paid on the PLN 4 million increase,” explains Piotr Stryjewski.

As the expert emphasizes, transforming one partnership into another is primarily a change of legal form, not the making of a new contribution.

Read more in the article by Przemysław Wojtasik. We invite you to read the full piece!

https://pro.rp.pl/prawo-podatkowe/art45153791-przeksztalcenie-bez-pcc-wyrok-tsue-wazny-dla-spolek