Contents of the report
The Management Board of PGE Polska Grupa Energetyczna S.A. ("Company”), discloses that the Company received tax interpretations issued by the Director of Tax Chamber in Warsaw acting on behalf of the Minister of Finance, regarding Company’s questions on appropriate application of tax regulations in case of the allocation of part of the reserve capital to cover the flat-rate income tax related to the increase of the share capital from Company’s own funds (reserve capital).
Questions regarding appropriate understanding of tax regulations were asked on the occasion of projects of resolutions for Extraordinary General Meeting (EGM) convened for September 5, 2016, following the shareholder’s (i.e. the State Treasury’s) proposal of share capital increase and allocation of part of the reserve capital to cover the flat-rate income tax related to the increase of the share capital from Company’s own funds (the Company notified about those events in current reports 42-44/2016).
The analysis of received tax interpretations lead to the conclusion that the tax due which Company is supposed to pay to the Tax Office due to the increase of share capital amounts to PLN 109,646,468.
The computation of the tax due is based on the amount of share capital increase finally adopted on EGM i.e. PLN 467,440,207.25 which corresponds to the increase of nominal value of PLN 0.25 per share (the Company notified about this event in the current report 49/2016).