Abstract

In the article, the author analyses the most important principles regarding top-up tax of constituent entities of international and domestic groups resulting from provisions of the act of 6 November 2024.
The analysis regards the subject scope of top-up tax resulting from provisions of the act which especially includes global top-up tax, domestic top-up tax and top-up tax from insufficient taxation of profits.
The analysis also covers the subject scope of taxation within which special attention is paid to concepts such as constituent entities of international or domestic groups, the highest level parent companies of international groups, lower level parent companies, parent companies in regard to partial ownership. The author indicates that multiple entities are excluded from the scope, e.g. governmental entities, international organizations, non-profit organizations, pension funds, investment funds.
The analysis also covers other new concepts such as: low-taxed constituent entities or low level taxation, which leads to the necessity of applying an essential formula for calculating an efficient tax rate.
The article also analyses other formulas for calculating the amount of:
- jurisdictional global top-up tax
- unitary top-up tax
- ownership top-up tax
- jurisdictional top-up tax
- domestic top-up tax
The last area of the analysis, which is the subject of the present article, are the principles regarding execution of duties within providing information on top-up tax connected to a specific fiscal year, and a tax return which should provide the amount of tax payable.