Poland's parliament launched works on legislation aimed at curtailing the process of transferring profits to foreign units located in tax heavens (controlled foreign corporations), the daily Gazeta Wyborcza wrote citing deputy Finance Minister Janusz Cichon.

Poland's parliament launched works on legislation aimed at curtailing the process of transferring profits to foreign units located in tax havens (controlled foreign corporations), the daily Gazeta Wyborcza wrote citing deputy Finance Minister Janusz Cichon.

The government's draft bill envisages that a flat 19% tax will be paid on profits of units located in tax havens and in countries with which Poland does not have agreements on avoiding double taxation, as well as on all foreign units whose revenues are comprised in more than 50% of dividends, profits from share sales etc.

The new legislation will improve the tax collection system and enhance competition in Poland, Cichon said.