Poland’s Ministry of Finance has prepared a draft ordinance that would extend the deadline for exit tax reporting and payment for deemed income arising during the first six months of 2019 to July 7.

The exit tax was introduced in Poland on January 1 in conjunction with the implementation of Council Directive (EU) 2016/1164 (the anti-tax-avoidance directive), which obligates EU member states to introduce exit tax regulations, among other antiavoidance measures, by the end of 2019.

The exit tax applies to Polish-resident corporations and individuals changing their tax residence if the change triggers deemed income from unrealized capital gains. The tax applies to assets exceeding PLN 2 million (about $530,400), and the rates are 3 percent or 19 percent for individuals (the rate for specifically established deemed income or the rate for estimated deemed income) and 19 percent for corporations.

The deadline for exit tax reporting and payment is the seventh day of the month after the month in which the deemed income from unrealized capital gains arises.

The draft ordinance is expected to be signed and published in the official gazette soon.

Janusz Fiszer, partner at GESSEL Attorneys at Law, Warsaw and associate professor, School of Management at the University of Warsaw.