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Permanent establishment as a foreign direct investment in Poland: identification of tax barriers in the context of new tax development

Author

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  • Jamroży Marcin

    (Collegium of Management and Finance, SGH Warsaw School of Economics, Warsaw, Poland.)

  • Janiszewska Magdalena

    (Collegium of Management and Finance, SGH Warsaw School of Economics, Warsaw, Poland.)

Abstract

The paper aims to identify the significant tax barriers to foreign direct investment (FDI) in Poland, in particular in the form of a permanent establishment (PE), in the context of new developments in international tax law. Due to the recommendations of the Base Erosion and Profit Shifting (BEPS) project, launched by Organisation for Economic Co-operation and Development (OECD) to prevent international tax avoidance, the understanding of PE has changed, which could lead to changes in business models. The purpose of the research is also to identify the significant tax barriers to economic activity in Poland, in particular in the form of PE, against the international tax law context. The study conducted by the authors relies on the most current tax rulings and judgments of administrative courts issued between 2017 and 2020. It is concluded that not so much the effective tax burdens but the regulatory ambiguity surrounding the tax obligations may contribute to the reduction of Poland's attractiveness as a location for FDI.

Suggested Citation

  • Jamroży Marcin & Janiszewska Magdalena, 2021. "Permanent establishment as a foreign direct investment in Poland: identification of tax barriers in the context of new tax development," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 57(2), pages 177-193, June.
    • Handle: RePEc:vrs:ijomae:v:57:y:2021:i:2:p:177-193:n:7
    DOI: 10.2478/ijme-2021-0011
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    References listed on IDEAS

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    More about this item

    Keywords

    BEPS; foreign direct investment; permanent establishment;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

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